The Ornua Purchase Price Index (PPI) has seen another significant slip, indicating a milk price decrease of around 4c/L.
The Ornua PPI for the month of March is 136.8, down from the 149.4 figure for February.
Estimated member co-op processing costs of 7.9c/L (excluding any allowance for member margins) of the Ornua product portfolio implies an indicative return of 41.1c/L including VAT.
This is a decrease on the 45c/L indicative return for February milk supplies.
The energy cost element of the processing cost is variable, and changes each month depending on energy costs.
In addition, the Ornua value payment payable to members for March is €4.1 million, which equated to 3.2% of gross purchases in the month (2.6% year-to-date).
The decrease in the index figure is down to continued weaker market conditions due to higher global milk supplies and poor demand, Ornua said.
Milk processors announce financials
In related news, two of Ornua’s member processors have announced their financial results today (Wednesday, April 12) for the most recent financial year.
Dairygold co-op saw its turnover soar by more than €477 million to a record €1.65 billion in 2022, according to its latest financial results.
Operating profits at the Co. Cork co-op also jumped by €9.8 million to €40.2 million last year.
Seán O’Brien, Dairygold’s chairperson, said the latest results highlighted a “year of unprecedented increases in commodity prices which had been heavily impacted by the war in Ukraine”.
“The buoyant markets led to record milk and grain prices, but on the cost side, higher energy, fertiliser and feed prices, significantly impacted the cost of production.
“However, the higher market returns ensured a very successful year for Dairygold and its members,” he added.
Meanwhile, operating profit at Lakeland Dairies reached €32.5 million euro in 2022, an increase of €4.3 million (15%).
The cross-border dairy processor’s financial results for 2022 showed an uplift in revenues of 45% to €1.9 billion.
This represents an increase of €590 million on the previous year’s figure of €1.3 billion.