The Ornua Purchase Price Index (PPI) has recorded a slight decline for January 2024 and now stands at 125.1, which is down from 125.5 in December 2023.
Estimated member co-op processing costs of 7.5c/L (excluding any allowance for processor margin) for the Ornua product portfolio implies an indicative return of 37.1c/L, VAT inclusive.
Ornua confirmed today (Thursday, January 8), that this figure is unchanged from the indicative price of 37.1c/L based on index in December 2023.
The energy cost element of the processing cost is variable and changes each month depending on energy costs.
Ornua said the result reflects seasonally “quieter” market demand through the month of January.
The Ornua Value Payment payable to members co-ops in the month is €0.2 million, which equated to 1.2% of gross purchases in the month.
In other news, Dairygold chief executive, Conor Galvin, is leaving the co-op to become the new chief executive of Ornua.
Galvin originally joined Dairygold in 2014 and held a number of roles in its senior leadership team before being appointed chief executive in 2022.
The board of Ornua yesterday (Wednesday, February 7) confirmed that Galvin will take up his new role with the co-op in the “coming months”.
Meanwhile, The Global Dairy Trade (GDT) price index has increased by 4.2% at the latest trading event held earlier this week.
This is the fifth consecutive increase and the index now stands at 1,106. A total of 24,836MT was sold at an average price of $3,571/MT.
Anhydrous milk fat, butter, butter milk powder, cheddar, lactose, mozzarella, skim milk powder (SMP), and whole milk powder (WMP) were offered.
All of the products offered at the event, except mozzarella, saw an increase in price index. The average price of mozzarella fell by 1.8% to $3,760/MT.
The most significant increase in the price index was recorded for butter at 10.3% to an average price of $6,516/MT.