Ornua has announced today (Wednesday, May 4) that its Purchase Price Index (PPI) has risen by just over 13 points for April.
The PPI for April is 177.6, which equates to 54.4c/L including VAT.
This is based on Ornua’s product purchase mix and assumed member processing costs of 9.2c/L and excludes processor margin.
Ornua noted that the energy cost element of the processing cost is variable and changes each month depending on energy prices.
“The increase is a result of continued stronger returns across the product range,” an Ornua spokesperson outlined.
The PPI index figure for April is up from 164.3 in the previous month, which equated to 49.1c/L including VAT. This means the index has risen by over 5c/L in a month.
In addition, the Ornua Value Payment payable to members for March is €6.64 million, which equates to 4.2% of gross purchases in the month and 3.8% year-to-date.
Meanwhile, the Global Dairy Trade (GDT) index has recorded a significant fall of 8.5% following its latest trading event which took place yesterday (Tuesday, May 3).
As a result of event 307, the index now stands at 1,379, down from 1,507 following the previous auction of dairy commodities on April 19. It is the fourth consecutive drop in the index.
The price index hit a record high of 1,593 on March 1, this year, but has been on a downwards trajectory ever since.
There were 19 rounds of bidding during the event, which lasted for two hours and 35 minutes. 25,163MT of produce was sold, with an average price paid of $4,419.