The Ornua PPI (Purchase Price Index) has dropped slightly for the month of July, as a result of “weaker butter and powder returns”, the Irish dairy exporter has confirmed.
In a brief statement to Agriland this afternoon (Wednesday, August 4), about the Ornua PPI, a spokesperson for Ornua said:
The Ornua Purchase Price Index for the month of July is 118.6 and is down from 119.9 in the previous month.
This converts to 35.5c/L, VAT inclusive based on Ornua’s product purchase mix and assumed member processing costs of 7c/L and excluding member margin.
The Ornua representative continued, adding:
“The decrease is as a result of weaker butter and powder returns.
“In addition, the ‘Ornua Value Payment’ payable to members in the month is €10.05m, which equated to 7.5% of gross purchases in the month (year to date 6%).”
Meanwhile, earlier this week, the Global Dairy Trade (GDT) index has recorded yet another decrease to mark eight straight index falls over the last three months in its latest auction.
The most recent tender – event 289 – concluded yesterday (Tuesday, August 3) with the GDT Price Index down 1.0%.
Lasting two hours and 55 minutes, yesterday’s event saw 170 participating bidders take part across 13 bidding rounds, with 119 winning bidders emerging.
A total of 24,084MT of product was sold on the day.
In what was a mixed affair overall, butter milk powder (BMP) saw by far the most dramatic move on the day, plummeting by 8% in index.
Whole milk powder (WMP) and lactose both saw decreases also, falling by 3.8% and 3.1% respectively.
However, there were increases too, with butter bouncing upward by 3.8%. Anhydrous milk fat (AMF), skim milk powder (SMP) and cheddar all saw index lifts too, of 1.3%, 1.5% and 0.7% respectively.