December PPI down marginally but returns 'generally stable'

Ornua’s Purchase Price Index (PPI) has slipped marginally for the month of December, the Irish dairy exporter has confirmed.

In a brief statement to AgriLand today (Wednesday, January 6), a spokesperson for Ornua said:

“The PPI for the month of December is 104.2 and is line with the previous month of 104.3.”

This converts to 30.2c/L, including VAT, based on Ornua’s product purchase mix, an assumed member processing costs of 7c/L and excluding member margin.

This a slight decrease of 0.1c/L on the 30.3c/L equivalent figure for November.

Continuing, the spokesperson said: “Returns are generally stable across the product range.

“In addition, the Ornua Value Payment payable to members in the month is €5.2 million, which equated to 7.1% of gross purchases in the month [year to date 5.2%].”

Meanwhile, the Global Dairy Trade (GDT) index posted a strong increase in the first auction of 2021 to mark four increases on the trot in recent outings.

The most recent tender – event 275 – concluded yesterday (Tuesday, January 5) with the GDT Price Index up 3.9%.

Lasting two hours and 38 minutes, the auction saw 178 bidders participate across 19 rounds, with 110 winning bidders emerging.

A total of 30,313MT of product was sold on the day.

This latest auction marks seven overall GDT index increases across the last eight events.