Ornua has announced today (Wednesday, April 6) that its Purchase Price Index (PPI) has risen by 12 points for March.

The PPI for March is 164.3, which equates to 49.1c/L including VAT.

This is based on Ornua’s product purchase mix and assumed member processing costs of 9.7c/L.

Ornua again outlined that the assumed processing costs do not include any allowance for processor margin and include a variable element to reflect increased energy costs

The PPI index figure for March is up from 152.3 in the previous month, which equated to 45.8c/L including VAT.

“The increase is as a result of continued stronger returns across the product range,” an Ornua spokesperson outlined.

In addition, the Ornua Value Payment payable to members for March is €5.55 million, which equates to 4.4% of gross purchases in the month and 3.6% year-to-date.

Elsewhere, the Global Dairy Trade (GDT) index has fallen by 1% following its latest trading event.

As a result of yesterday’s (Tuesday, April 5) auction, the index now stands at 1,564, down from 1,579. It is the second consecutive drop in the index, which remains at historically high levels.

Source: GDT

In total, 159 bidders took part in the trading event with 101 winning bidders.

There were 16 rounds of bidding during the event which lasted for two hours and 20 minutes. 21,511MT of produce was sold, with an average price paid of $4,981.

Butter milk powder (BMP), which was not offered for sale at the previous event, increased in price by 6.3% to $4,461.

Cheddar was up 2.7% to $6,472 and there was a 1% increase for skim milk powder (SMP) to $4,599.

Anhydrous milk fat (AMF) fell by 2.5% to $6,908 and there was a drop of 1.5% to $4,532 for whole milk powder (WMP).

The price of butter decreased by 0.6% to $6,891 and there was a similar drop for lactose, landing at $1,598.

Sweet whey powder was not offered for sale during the event.