Ornua July returns down 22% on 2014
The Ornua Purchase Price Index (PPI), a monthly indicator of market returns on dairy products, fell by 3.5 points in July.
This is down from 95.3 points in June, which was also down marginally from May (98.5 points).
Earlier this year, Ornua saw its PPI for March hit 100 points up 2.5 points from February levels.
Compared to June 2014, the PPI index is down from 118.5 points a fall of over 22%.
This latest PPI shows that the market has generated a return 8.9% below the average for the base year (2010).
The falls come ahead of anticipated milk processor decisions on the July milk price which are set to be taken in the coming days.
Meanwhile, world dairy markets remain under pressure. At this week’s Global Dairy Trade (GDT) auction, overall dairy prices slid 9.3% – adding in the fall from the July auctions overall prices have fallen a combined 23.8% since June.
Whole Milk Powder (WMP) prices have fallen over 30% over the period and when the current price of $1,590 is converted into an equivalent Irish milk price the value is now 10.85c/L – down from highs of 40c/L in January 2014.
Following the growing concern about the economic situation in the dairy and in the livestock sectors in certain Member States of the EU, the Luxembourg Presidency decided to convene an extraordinary Agriculture Council meeting on Monday, September 7, 2015, in Brussels.
The move comes following the European announcement of amended support measures for the dairy sector in light of the continuing downturn pressure impacting on world dairy markets and the impact of the Russian ban on EU food imports.
At the last meeting of the Council Irish Minister for Agriculture, Simon Coveney asked Commissioner Hogan to give serious consideration to an intervention price increase.
Milk prices paid to EU farmers have declined significantly since the second half of 2014 and beginning of this year.