Ornua PPI increases for month of September

Ornua’s Purchase Price Index (PPI) has risen for the month of September, the Irish dairy exporter has confirmed.

In a brief statement to AgriLand this morning (Wednesday, October 7), a spokesperson for Ornua said:

“The Ornua PPI for the month of September is 102.8 and is up from 101.8 in the previous month.”

This converts to 29.7c/L including VAT based on Ornua’s product purchase mix and assumed member processing costs of 7c/L.

This is an increase of 0.3c/L on the 29.4c/L equivalent figure for August.

Continuing, the Ornua representative added:

“The increase is as a result of a more favourable product mix, with generally stable returns across the product range.

In addition, the Ornua Value Payment payable to members in the month is €5.9 million, which equated to 6.5% of gross purchases in the month [year to date 4.2%].

Meanwhile, the Global Dairy Trade (GDT) index has lifted in its latest auction to record back-to-back increases.

GDT boost

The most recent auction – event 269 – concluded yesterday afternoon (Tuesday, October 6) with the GDT Price Index up 2.2%.

Lasting two hours and 34 minutes, the event saw 190 participating bidders take part. Following 17 bidding rounds, 135 winning bidders emerged.

A total of 35,090MT of product was sold on the day.

Yesterday’s event marks back-to-back increases following four consecutive decreases in recent months. Of these, three were relatively small drops – which followed a spike of 8.3% back in July.