Ornua has confirmed its Purchase Price Index (PPI) for the month of May, which shows an increase in value of almost 1c/L.

The PPI for the month of May is 178.5, which equates to 55.2c/L, including VAT based on Ornua’s product purchase mix and assumed member processing costs of 8.8c/L and excluding member margin.

The index is an increase from April’s figure of 177.6, equating to 54.4c/L.

Ornua stated that the energy cost element of the processing cost is variable and changes each month depending on energy costs. 

The increase is a result of continued stronger returns across the product range, according to a spokesperson for Ornua.  

Ornua Value Payment

In addition, the Ornua Value Payment payable to members in the month is €8.16 million, which equated to 3.8% of gross purchases in the month (3.8% year to date).

Earlier today (Wednesday, June 1), Ornua reported a 1.3% increase in operating profit – from €151.8 million in 2020 to €153.7 million in 2021 – in its operating and financial results.

Ireland’s largest exporter of Irish dairy products, Ornua, marks 60 years in business with strong 2021 performances from Kerrygold and Ornua Ingredients, helping it to increase turnover by 6.9%.

This figure increased from €2.3 billion in 2020 to €2.5 billion in 2021 as consumption patterns started to recover from the impact of the Covid-19 pandemic, according to Ornua.

Meanwhile, after a series of strong performances late last year and early this year, the Global Dairy Trade (GDT) index recently saw its fifth decrease in a row after its latest event.

The GDT auction – event 308 – did not see such a sharp drop as the previous event on May 3 (when the index fell by 8.5%). However, it did record a decline of 2.9% at its latest event.

This reflected an average price of $4,432/MT of product sold.

100 winning bidders emerged from 159 participating, across 16 bidding rounds. The event lasted two hours and 13 minutes, and saw 24,285MT of product sold.