The Ornua Purchase Price Index (PPI) has decreased again for the month of May, though the decrease is not as significant as in previous months.
Announcing the latest PPI figure today (Wednesday, June 7), Ornua confirmed an index of 123.6, down from the 126.7 figure announced last month with respect to April.
This figure implies a price return of 36.7c/L inclusive of VAT, accounting for estimated member processing costs of 7.5c/L (excluding any allowance for processor margins) for the Ornua product portfolio.
Ornua said that the energy cost element of the estimated processing costs is variable and changes each month depending on energy costs.
This price return is down 0.9c/L from 37.6c/L for April.
Comparing the latest figure with recent trends, the April price was a decrease of 3.5c/L on the March price, which itself followed a series of similar decreases since the start of the year.
Ornua also announced today that its 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 (4.1% year-to-date).
In other dairy market news, the Global Dairy Trade (GDT) index has seen another slight decrease, making it two consecutive drops in the index figure following on from two consecutive increases before that.
The index figure now stands at 1,002 after trading event 333 yesterday (Tuesday, June 6), a 0.9% decrease on the figure for the last event on May 16, which itself also saw a 0.9% decrease on the previous event.
In the 12 most recent GDT auctions (including yesterday’s) the index saw nine decreases (although some were relatively marginal) and three increases.
On April 4, the index figure decreased to 964, its lowest figure since November 3, 2020.
Across the sub-indices for the various products, perhaps the stand-out result was a significant 7.4% increase for cheddar, with an average price yesterday of $4,668/MT.
Anhydrous milk fat (AMF) and butter also saw gains, of 1.8% and 0.5% respectively.