Ornua PPI increases for the third consecutive month

The Ornua Purchase Price Index (PPI), the monthly indicator of market returns on dairy products sold by Ornua, has risen for a third consecutive time this year.

For September, the PPI rose to 92.2 points, an increase of 6.7 from the August PPI of 85.8 points.

Ornua’s September PPI is the equivalent of 26.6c/L, VAT inclusive and is based on Ornua’s product purchase mix and assumed costs of 6.5p/L.

According to Ornua, the September rise reflects higher returns across all of the main products. Returns on dairy products stabilised in June and since then prices have been on the increase.

The PPI had dropped significantly over the 14-month period from March 2015 to May 2015, from 101.2 points to 81 points.

However, despite the increase in Ornua PPI prices, dairy product prices fell 3% at yesterday’s Global Dairy Trade auction, bringing an end to the increases seen in auction prices during the last four marketing events.

Whole Milk Powder prices dropped by 3.8%, while Skimmed Milk Powder (SMP) declined by 3.8%.

All of the other commodities on offer at the auction posted a decrease in values, with the exception of Butter Milk Powder (BMP) which increased by 9%.

Key results:
  • AMF index down 1.0%, average price US$4,954/MT
  • Butter index down 0.3%, average price US$3,891/MT
  • BMP index up 9.3%, average price US$2,408/MT
  • Ched index down 2.3%, average price US$3,430/MT
  • LAC index down 9.7%, average price US$744/MT
  • RenCas index down 3.7%, average price US$6,574/MT
  • SMP index down 3.9%, average price US$2,209/MT
  • WMP index down 3.8%, average price US$2,681/MT