Ornua has today (Wednesday, July 8) confirmed a slight increase in its Purchase Price Index (PPI) for June compared to the previous month.

Ornua said the June PPI figure stood at 130.1, up from 129.8 in May.

The PPI is a monthly indicator of market returns on dairy products purchased by Ornua - including butter, cheese, whole milk powder and protein products - relative to comparable returns generated in a base year.

Ornua

Ornua’s estimate of member co-ops processing costs was 9.5c/L in the month, which is unchanged from May.

Ornua stated that it should be noted that these estimated processing costs:

Are based on Ornua’s estimate of the average cost of processing the Ornua basket of products, which is not representative of any individual member co-op processor;
Exclude any allowance for member co-op processor margin;
Are based on an updated methodology (from 1 June 2024) which uses Ornua’s initial estimate of member co-op processing costs from 2020 as a base and indexes the variable elements to external indices which will be updated quarterly in arrears;
Will rise and fall quarterly in line with the movements in the variable costs (most notably energy) as per the external indices.

When estimated processing costs are deducted, Ornua’s PPI implies an indicative return of 36.7c/L, 4.5% VAT inclusive (up from the previous month of 36.6c/L).

This is for milk with constituents of 3.6% fat and 3.3% protein which is net of Ornua costs to market.

In a statement, Ornua said: "The results reflect flat overall market returns for the month of June".

In addition to the above, the ‘Ornua Value Payment’ payable to member co-ops in the month is €10 million, which equated to 6.6% of gross purchases in the month.

Dairy markets

Meanwhile, the Global Dairy Trade (GDT) index recorded another decline following its latest trading event yesterday.

The index was down by 4.9%, for an average price of €3,323/t.

This is the third consecutive decline.

The trading event saw a decline in the average prices for butter, cheddar, whole milk powder, skim milk powder, anhydrous milk fat and lactose.

There were average price gains for mozzarella and buttermilk.