August PPI jumps to highest index since January

Ornua’s Purchase Price Index (PPI) for August has recovered from the drop in July, and has now been adjusted to 111.1.

This is up from July’s index figure of 107.3, and is the highest index figure recorded this year since January’s index of 111.8.

This follows recent months where the PPI dropped to as low as 100.4 for March and April.

Following Lakeland’s milk price announcement yesterday, more processors are expected to announce their prices for August in the coming days.

Lakeland holds steady

Lakeland Dairies has become the first processor to reveal its milk price for August supplies after its board met recently.

The processor has decided to hold its price for milk produced last month; it will pay its suppliers 32.78c/L including VAT for the second month in a row.

This follows on from Lakeland’s decision to increase its price by 1c/L for July milk.

While milk powder prices have improved, butter prices have weakened “significantly” in the past month, the processor outlined.

In a statement, it said: “Recognising the difficult conditions experienced by dairy farmers as a result of the extended period of very dry weather during the summer, last month Lakeland introduced a €20/t discount on every tonne of fertiliser bought by milk suppliers and shareholders – effective from August 1.

This €20/t discount will continue to apply until the end of the fertiliser spread season.

The co-operative has reported “strong take-up” of the measure where dairy farmers are taking the opportunity to grow more grass during this reasonable spell of weather.