Ornua PPI: Steady as she goes for January

The Ornua Purchase Price Index (PPI) for January remains unchanged at 111.3. It reflects reduced returns for butter and skimmed milk powder (SMP), offset by less lower-priced spot purchases in the month compared to December.

This equates to 33.6c/L including VAT, based on Ornua’s product purchase mix and assumed costs of 6.5c/L.

This follows on from last month’s drop in index for December supplies; the index for the last month of 2017 dropped from 115.0 to 111.3, bringing to an end six consecutive monthly increases in 2017.

According to the Irish Creamery Milk Suppliers’ Association (ICMSA) Dairy chairman Gerald Quain, the move is obviously very welcome and, along with the last GDT, indicates that the market is improving and justifies the ICMSA’s view that the January milk price should be held at current levels.

GDT index improves in latest auction

Meanwhile, the latest Global Dairy Trade (GDT) auction, event 205, resulted in a boost of 5.9% in index yesterday. Similar to last month’s auction, all products on offer increased in price on the day.

Marking the third straight increase and maintaining early 2018 growth in price, yesterday’s considerable 5.9% rise follows positive results of 2.2% and 4.9% in January’s GDT events.

Lasting two hours and 18 minutes, yesterday’s event took place over 15 rounds with 126 winning bidders out of a total of 188 bidders participating. A total quantity of 22,197 metric tonnes was sold on the day.