International dairy markets are continuing to perform strongly, with Ornua revealing its Purchase Price Index (PPI) for the month of November, confirming an increased index figure.
Ornua’s PPI for last month is 131.9. This converts to 40.3c/L inclusive of VAT, based on Ornua’s product purchase mix and assumed member processing costs of 7c/L, and excluding member margin.
The index this time around is up from 125.6 for October.
According to Ornua, the increase is as a result of continued stronger returns across the product range.
In addition, the Ornua Value Payment payable to members in the month is €6.35 million, which equated to 8.4% of gross purchase in the month (6.7% in the year to date).
The latest Ornua PPI comes on the back of continued strong performance in the international dairy market.
The Global Dairy Trade (GDT) Index has seen a solid run of results in recent weeks and months, with the index figure for the most recent event increasing by 1.9% on the preceding auction.
Changes in Irish dairy industry
In other dairy industry news, Glanbia Co-op has announced that it will hold a Special General Meeting (SGM) of its eligible members on Friday, December 17, to vote on its proposal to take full ownership of Glanbia Ireland (GI).
As announced on November 10, Glanbia Co-op proposes to pay €307 million to acquire Glanbia plc’s 40% interest in Glanbia Ireland.
Currently, Glanbia Ireland operates as a strategic joint venture, 60% owned by Glanbia Co-op and 40% owned by Glanbia plc.
Voting on this proposal and a series of related resolutions will take place at an SGM on December 17, at 2:00p.m. The meeting will take place online in a virtual format permitted under current regulations and approved by the Irish Cooperative Organisation Society (ICOS).
The vote will be held in an online format.
John Murphy, chairperson of Glanbia Co-op, said: “Since these proposals were announced on November 10, we have consulted with our representative structure and received positive feedback. These proposals are driven by our ambition to pay the best possible price for milk and grain to our farmer members.”