Dairy board returns steady in May (but still 20% lower than 2014 levels)
The Ornua Purchase Price Index (PPI), a monthly indicator of market returns on dairy products sold by Ornua fell marginally in May.
The result reflects general negative market trends globally for dairy prices.
Ornua (formerly the Irish Dairy Board) saw its PPI for the month of March rise to 100 points, 2.5 points up on the February level.
It was the second positive month in a row for Ornua’s dairy market returns with returns also increasing in February from a January low of 93.
However, in April and now May the PPI fell back below the 100 point mark currently standing at 98.5. The index’s current level is now some 20% lower than the same month in 2014.
The Ornua Purchase Price Index (PPI) is a monthly indicator of market returns on dairy products sold by Ornua (typically butter, cheese, whole milk powder and protein products), relative to comparable returns generated in a base year (2010).
Markets Quiet as Prices Remain Flat – ICOS
In its recent commentary on the dairy market ICOS has said dairy markets continue to be very weak as Europe passes its peak and milk supplies remain strong.
It says milk supplies, internationally, are expected to show growth on last year, despite the poor start to the 2015 season.
According to ICOS low dairy product prices have prompted some demand growth, which will help, to some extent to absorb production growth.
However it warns that European milk prices are expected to come under significant downward pressure in order to reflect the current market returns.