Ornua has today (Wednesday, November 2) confirmed a drop in its Purchase Price Index (PPI) for the month of October.
The Ornua PPI for the month of October is 183.7, which is down on the September PPI which had been 184.5, which was in turn down very slightly from 184.6 in August.
The October PPI reflects a milk price of 55.6c/L which includes VAT, based on Ornua’s product purchase mix and assumed member processing costs of 10.2c/L.
This does not include member margins.
The October milk price underlines a drop from the September milk price of 56c/L.
In a statement, Ornua said that “the energy cost element of the processing cost is variable and changes each month depending on energy costs”.
The co-op also detailed that the Ornua Value Payment payable to members for the month of October is €6.5 million, which equated to 3.8% of gross purchases in the month (3.6% year to date).
In September the Ornua Value Payment payable to members in the month was €8.3 million, which equated to 3.5% of gross purchases in the month (3.6% year to date).
Meanwhile, the Global Dairy Trade (GDT) price index reflects the current uncertainty in global dairy markets as it recorded another decrease following its latest auction which took place yesterday (Tuesday, November 1).
The price index recorded a 3.9% decrease to 1069.
The GDT results showed:
Number of Winning Bidders 116 Number of Bidding Rounds 18 Duration of Trading Event (hours:mins) 2:16
The average price at yesterday’s auction was $3,537 with 28,867MT of produce sold.
There was a mixed outcome for some dairy commodities with anhydrous milk fat dropping 1.7% to $5,562, while butter increased by 0.2% to $4,868 and whole milk powder suffering the sharpest drop of 3.4% to settle at $ 3,279.