Ornua has announced today (Wednesday, March 2) that its Purchase Price Index (PPI) has risen by over 5c for February.

The PPI for February is 152.3, which equates to 45.8c/L including VAT.

This is based on Ornua’s product purchase mix and assumed member processing costs of 8.7c/L.

“The increase is as a result of continued stronger returns across the product range.

“The assumed processing costs do not include any allowance for processor margin and now include a variable element to reflect increased energy costs,” an Ornua spokesperson outlined.

The February index is an increase from the previous month’s figure of 147.2, which converted to 45.8c/L.

In addition, the Ornua Value Payment payable to members for last month is €470,000, which equated to 2% of gross purchases in the month.

Meanwhile, the Global Dairy Trade (GDT) Price Index hit a record high as a result of yesterday’s (Tuesday, March 1) trading event.

That index has been steadily increasing since December and today it recorded growth of 5% compared to the previous auction.

As a result of event 303 the index now stands at 1,593, which is the highest level it has reached in the past decade. On April 13, 2013, the index hit 1,573.

All of the dairy products offered for sale during today’s trading event saw an increase in prices.

Cheddar climbed by almost 11% to $6,394 and butter rose by nearly 6% to $7,086.

176 bidders participated in the trading event where there were 112 winning bidders. In total, 25,208MT of dairy products were sold and the average price paid was $5,065.