The Ornua Purchase Price Index (PPI) has recorded a drop for the final month of 2023, according to new data.
Ornua confirmed today (Wednesday, January 10) that the index figure for December 2023 is 125.5, down from 125.8 the previous month.
After accounting for estimated member co-op processing costs of 7.6c/L (excluding any allowance for processor margins) the Ornua product portfolio implies an indicative return of 37.1c/L, VAT inclusive.
This figure is down from the indicative price of 37.2c/L based on November’s index.
The energy cost element of the processing cost is variable and changes each month depending on energy costs.
Ornua also confirmed that its value payment payable to its member co-ops in December is €2.5 million, which equated to 6.7% of gross purchases in the month.
In a statement, Ornua said that “the result reflects seasonally quieter market demand through the month of December”.
Meanwhile, Lakeland Dairies has announced today that it will increase its milk price by 1.15c/L for December supplies.
The processor’s board has decided on a price for milk supplied in December with the base price increasing for all milk supplied.
A base price of 37.15c/L at 3.6% butterfat and 3.3% protein will be paid by the processor for December milk in the Republic of Ireland.
This means that the base price has increased by 1.15c/L. Qualifying farmers will also receive a 5c/L out-of-season payment.
In Northern Ireland, a base price of 30.25p/L will be paid for milk supplied in December. The base price has increased by 1p/L plus the usual out-of-season payment of 3p/L.
“As we face into 2024, the global dairy markets are more favourable but remain delicately poised.
“While there are some positive market indicators, particularly around milk supplies in key production regions, demand uncertainty remains.
“Lakeland Dairies will continue to monitor the markets closely in the time ahead,” the processor said in a statement.