The Ornua Purchase Price Index (PPI), the monthly indicator of market returns on dairy products sold by Ornua, has risen for a second consecutive time this year.
For August, the PPI rose to 85.8 points, rising from the July PPI of 81.8 points.
Ornua’s August PPI is the equivalent of 24.3c/L, VAT inclusive and is based on Ornua’s product purchase mix and assumed costs of 6.5p/L.
The PPI had dropped significantly over the 14-month period from March 2015 to May 2015, from 101.2 points to 81 points.
Returns on dairy products stabilised in June with prices holding steady.
The positive Ornua PPI comes following a third consecutive rise in dairy prices at the Global Dairy Trade.
Dairy product prices rose 7.7% at yesterday’s Global Dairy Trade auction, the first time prices have rose consecutively three times this year.
It follows two bumper Global Dairy Trade auctions, with the last two events registering rises of 12.7% and 6.6%.
The main movers at today’s auction were anhydrous milk fat (AMF) (+15.4%) butter (+14.9%) and skimmed milk powder (SMP) (+10%).
Whole milk powder (WMP) prices was predicted to rise by 7% by New Zealand bank ASB, however it did not rise quite as high, registering a rise of 3.7%.
Key Results
- AMF index up 15.4%, average price US$4,769/MT
- Butter index up 14.9%, average price US$3,764/MT
- BMP index up 6.8%, average price US$2,070/MT
- Ched index up 9.0%, average price US$3,436/MT
- LAC index up 2.0%, average price US$787/MT
- RenCas index up 6.7%, average price US$6,720/MT
- SMP index up 10.0%, average price US$2,224/MT
- WMP index up 3.7%, average price US$2,793/MT