Ornua’s Purchase Price Index (PPI) for the month of October “gives low-paying co-ops scope to catch up”, according to the Irish Farmers’ Association (IFA).

IFA Dairy Committee chairman Tom Phelan said last month’s PPI from Ornua has risen to 30.2c/L.

This price equivalent is an increase of 0.5c/L on the 29.7c/L equivalent figure for September.

When adjusted to include the Ornua value payment, it amounts to 32.71c/L including VAT, Phelan noted.

Yesterday (Wednesday, November 4), a spokesperson for Ornua said that its “Purchase Price Index for the month of October is 104.1 and is up from 102.8 in the previous month”.

Commenting on this, Phelan said:

“The dairy sector has proven robust amongst the Covid-19 uncertainty, as clearly seen by the slight but upward trend of the Ornua PPI each month.

“This gives farmers confidence going into the backend,” he added.

For September milk, there was a difference of about 2c/L in base price between the highest paying and lowest paying milk processors.

“We highlighted this last month as a growing issue amongst the lower paying processors. Instead of the gap narrowing, it has since widened,” he said.

“Dairy farmers expect this price difference to be addressed this month,” he concluded.