The Ornua Purchase Price Index (PPI) for November has seen a fall of 12 points, reflecting a decrease in the corresponding milk price of 3c/L.
The PPI for last month is 171.8, which converts to a price of 52c/L including VAT on Ornua’s product purchase mix and assumed member processing costs of 9.5c/L, and excluding member margin.
November’s PPI is a decrease from the figure of 183.7 for October’s PPI.
Ornua said today (Wednesday, December 7) that the energy cost element of the processing cost is variable and changes each month depending on energy costs.
In addition, the Ornua Value Payment to its member processors for November is €4.3 million, which equates to 3.9% of gross purchases in the month.
In other dairy market news this week, the latest Global Dairy Trade (GDT) event has concluded with the GDT price index up 0.6%.
The average price was $3,610/MT with 29,570MT of product sold at yesterday’s (Tuesday, December 6) event.
There were 118 winning bidders, out of a total of 156 participating bidders at the event, across 17 bidding rounds lasting two hours and 35 minutes.
There were seven products offered at the latest event with five products showing increases, while two showed decreases.
Skim Milk Powder (SMP) saw an increase of 1.7% for an average of $3,102/MT, while Butter Milk Powder (BMP) saw the biggest increase of 4.7% for an average of $2,979/MT.
Anhydrous Milk Fat (AMF) saw a 1.8% increase with an average of $5,797/MT while cheddar also saw a similar increase of 1.8% giving an average of $4,826/MT.
Whole milk Powder (WMP) saw the smallest decrease in today’s event, with an increase of 0.1%, averaging $3,400/MT. Sweet Whey Powder was not offered again.
It’s the second GDT event in recent weeks which recorded a slight increase in the index.