Ornua has today (Wednesday, August 3) confirmed that its Purchase Price Index (PPI) has increased by five points for the month of July.

The PPI for last month is 184.4, which is up from the June index value of 179.4.

This most recent PPI figure reflects a price of 57c/L, inclusive of VAT, based on Ornua’s product purchase mix and assumed member processor costs of 9.1c/L, though excluding member margins.

In its statement, Ornua outlined that the energy cost element of the processing cost is variable and changes each month depending on energy costs. 

The increase is a result of continued stronger returns across the product range, the dairy business said.

The Ornua Value Payment payable to members in the month is €7.45 million, which equated to 3.2% of gross purchases in the month (3.6% year to date).


Meanwhile, the general downward spiral of the Global Dairy Trade (GDT) price index has continued.

The index dropped by a further 5% following its latest trading event which took place yesterday.

The index, which now stands at 1,163, has returned to levels last seen during August 2021.

It follows a record high last March when the dairy commodity index peaked at 1,593.

The index has now suffered four consecutive falls since the auction on June 7.

The average price achieved during trading event 313 was $3,913, with 27,500MT of product sold.

All of the dairy commodities offered for sale recorded a drop in their average price. Lactose and sweet whey powder (SWP) were not sold during the event.

Butter milk powder (BMP) recorded the most significant drop of 9.2% to an average price of $3,724/MT.