Ornua has confirmed that its Purchase Price Index (PPI) for the month of August is 119.2, which marks another drop in the index.
The dairy co-op, whose consumer brands including Kerrygold and Dubliner, said that this figure is down from 121.3 for the previous month.
In a statement today (Wednesday, September 6), Ornua said: “Estimated member co-op processing costs of 7.4c/L, excluding any allowance for processor margin, for the Ornua product portfolio implies an indicative return of 35.2c/L, VAT inclusive.”
This is down by 0.7c/L when compared to the July figure of 35.9c/L.
Ornua
Ornua said that 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 in the month is €6.9 million, which equated to 5.4% of gross purchases in the month. (4.5% year-to-date),” the statement added.
Ornua said that the result reflects “weak market returns and demand weaker through the month of August”.
Meanwhile, the Global Dairy Trade (GDT) price index has increased by 2.7% at the latest trading event today (Tuesday, September 5).
The index figure now stands at 873 compared to 850 at the previous trading event on August 15, which saw a significant fall of 7.4%.
Today’s 339th trading event saw a total quantity of 37,729MT being sold at an average price of $2,888/MT.
The biggest price increase was recorded for whole milk powder (WMP), which was up by 5.3% to an average price paid of $2,702/MT.