Ornua PPI ‘a clear validation’ for stopping slide in milk price

The small increase in the September Ornua Purchase Price Index (PPI) is a clear validation that co-ops must stop the slide on milk prices, according to the Irish Farmers’ Association (IFA).

Commenting on the PPI, which was announced earlier today, Wednesday, October 9, IFA National Dairy Committee chairman Tom Phelan urged Irish co-ops and processors to start thinking about ways to improve farmer pay-outs over the coming months.

The PPI for September 2019 is 103.8, according to Ornua; this is adjusted up marginally from the 103.5 recorded in August 2019.

The September index converts to 30.9c/L including VAT, based on Ornua’s product purchase mix and assumed costs of 6.5c/L, the cooperative added.

The adjustment for September reflects stable butter and cheese prices with improved powder returns, a spokesperson for the exporter commented.

Reacting to this, Phelan said:

“The Ornua PPI for September reflects, as we have demonstrated, stronger powder prices and stable to firmer butter and cheese returns.

We have heard enough talking down of milk prices by co-ops.

“Over the next few days, board members must start focusing on how they are going to ensure that Irish dairy farmers, just like their European counterparts, can benefit from firmer dairy returns in stronger milk prices over the coming months,” the chairman concluded.