Ornua has announced its Purchase Price Index (PPI) for the month of December, confirming an increase in index of over 1c/L.
The PPI for December is 135.5, which converts to 41.6c/L, inclusive of VAT, based on Ornua’s product purchase mix and assumed member processing costs of 7c/L, and excluding member margin.
This index figure is an increase on the 131.9 PPI for November, which converted to 40.3c/L.
The figure for December represents a price increase of 1.3c/L.
Ornua says that the increase in the PPI is as a result of stronger returns across the product range.
In addition, Ornua confirmed that the ‘Ornua Value Payment’ payable to members in the month is €3.72 million, which equated to 7% of gross purchases in the month.
As the time of the month approaches for processors to begin revealing milk prices, the dairy market continues to be in relatively good shape, with the Global Dairy Trade (GDT) index seeing a slight recovery this week.
In the latest auction – event 299 – the index increased by 0.3%, with an average product price of $4,247/MT and 30,685MT of product sold.
The event, which was held yesterday (Tuesday, January 4), saw 112 winning bidders emerge from 156 participating, over two hours and 16 minutes which saw 15 bidding rounds altogether.
The GDT index figure now stands at 1,336, a marginal increase on the 1,333 recorded on December 21 – but a little way off the 1,354 figure seen on December 7.
Of the six products offered yesterday (lactose and, as usual, sweet whey powder were not offered) four recorded increases in their respective sub-indices.
The strongest performer was cheddar, which increased by 4.9% to $5,487/MT.
Butter milk powder (BMP) and skim milk powder (SMP) both saw increases on 1%, to $3,654/MT and $3,773/MT respectively.
Butter saw a marginal increase of 0.3%, to $5,868/MT.
Anhydrous milk fat (AMF) was the only product to see a decrease in sub-index, reducing by 0.7% to $6,668/MT.
Whole milk powder (WMP) was not recorded as having a percentage change either way, and its price decreased by just $1/MT to $3,866/MT.