Dublin-headquartered dairy co-op Ornua, whose best known consumer brands include Kerrygold and Dubliner, has confirmed that its Purchase Price Index (PPI) for the month of June is 124.0 – flat on the previous month.
In a statement today (Wednesday, July 12) Ornua said: “Estimated member co-op processing costs of 7.6c/L (excluding any allowance for processor margin) for the Ornua product portfolio implies an indicative return of 36.7 c/L, VAT inclusive.”
This is unchanged from the price for the month of May which was also 36.7c/L inclusive of VAT.
Ornua
Ornua has stressed that the energy cost element of the processing cost is “variable and changes each month depending on energy costs”.
The co-op also confirmed today that the Ornua Value Payment, payable to members in the month is €8.5million – which equated to 4.8% of gross purchases in the month (4.3% year to date).
The Ornua Value Payment payable to members in the month of May was €7.6 million, which equated to 4.9% of gross purchases in the month.
According to the co-op the latest PPI result “reflects flat market returns, with markets very quiet, and demand weaker through the month of June”.
Lakeland Dairies
Meanwhile, the board of Lakeland Dairies has also warned that dairy markets have remained “uncertain” over the past month, as it confirmed that it will hold its milk price for June.
Lakeland will pay a price of 37.35c/L for milk at 3.6% butterfat and 3.3% protein in the Republic of Ireland.
This price is unchanged from the May price.
In Northern Ireland, Lakeland Dairies has also held the base price of milk for June at 30p/L.
But the co-op, which processes in the region of 1.8 billion litres of milk annually, warned that demand for products is “subdued”.
In a statement, the Co. Cavan-headquartered co-op said that milk production in many of the main dairy regions remains up on last year, but the rate of growth has slowed.