December Ornua PPI increases on November figures

Ornua has confirmed that its Purchase Price Index (PPI) figure for the month of December 2018 rose to 107.5, an increase of over two points.

The figure for the previous month, November 2018, was 104.9, which was a drop from the previous value.

According to Ornua, the increase in December’s index “reflects improved spot and powder returns, off-setting lower butter and cheese prices”.

The index for December is 107.5 (32.2c/L, VAT inclusive, based on Ornua’s product purchase mix and assumed costs of 6.5p/L.

The 104.9 figure in November had been the third lowest of 2018, with only March and April of that year seeing a lower value than that.

The increase in the index figures comes on the back of strong returns in the latest Global Dairy Trade (GDT) auction, which saw its own price index rise by 2.8%.

Butter milk powder (BMP) and skimmed milk powder (SMP) fared particularly well, with the price indices for those products reaching 9.3% and 7.9% respectively.

Anhydrous milk powder (AMP), butter and cheddar also put in good showings, with all three of these products increasing by between 3% and 4%.

All produce involved in the auction recorded rises in price index, though the figure for sweet whey powder was not available.

All-in-all, the auction saw the third consecutive rise in the GDT index, at the end of a difficult second half of 2018, in which there was seven price index drops in a row.