The Ornua PPI (Purchase Price Index) is “down marginally” for the month of August, as a result of “weaker butter returns”, the Irish dairy exporter has confirmed.
In a brief statement to Agriland this evening (Wednesday, September 1), about the Ornua PPI, a spokesperson for Ornua said:
“The Ornua Purchase Price Index for the month of August is 118.1 and is down marginally from 118.6 in the previous month.”
This converts to 35.3c/L, VAT inclusive based on Ornua’s product purchase mix and assumed member processing costs of 7c/L and excluding member margin.
The Ornua representative continued, adding:
“The decrease is as a result of weaker butter returns.
“In addition, the Ornua Value Payment payable to members in the month is €10.11 million, which equated to 8% of gross purchases in the month [year to date 6.3%].”
Meanwhile, the Irish Creamery Milk Suppliers’ Association (ICMSA) has said that some farmers were underpaid by €3,000 for this year’s peak milk production.
The chairperson of ICMSA’s Dairy Committee has said that a close analysis of the figures undertaken by the organisation points to what Ger Quain describes as “systematic underpayment” for the period of May through July.
Quain said that the ICMSA had looked at the figures for a farmer supplying 500,000L/yr and compared the average weighted payments made by all the co-ops across that three-month period to the corresponding Ornua milk price plus added value.
“We weighted all the co-op prices according to their overall yearly supply and then averaged that to give a monthly figure,” he explained.