Ornua has confirmed its Purchase Price Index (PPI) for the month of January, which shows an increase in value of more than 4c/L.
The PPI for January is 147.2, which equates to 45.8c/L including VAT, based on Ornua’s product purchase mix and assumed member processing costs of 7c/L, but excluding member margin.
The index is an increase from December’s figure of 135.5, which converted to 41.6c/L.
Ornua says that the increase in index is as a result of “continued stronger returns across the product range”.
In addition, the Ornua Value Payment payable to members for last month is €330,000, which equated to 1.2% of gross purchases in the month.
The boost for the PPI follows on from similarly good news for the dairy markets yesterday (Tuesday, February 1), with the Global Dairy Trade (GDT) index climbing by 4.1% in the latest event.
The GDT index is currently at levels not seen since 2014.
Yesterday, a strong growth trend continued with the index breaking the 1,400 mark for the first time since March 4, 2014; it now stands at 1,455.
The event, number 301, saw an average price of $4,630/MT with 28,463MT being sold across 16 bidding rounds over a period of two hours and 18 minutes.
The event saw 111 winning bidders out of 162 who participated. Minimum supply was recorded at 27,295MT and maximum supply at 31,963MT.
All offered products recorded increases in their respective sub-indices, with butter milk powder (BMP) putting in the strongest performance, increasing by a handsome 9.7% to $4,009/MT.
Whole milk powder (WMP) had a 5.8% jump to $4,324/MT and there was a 3.3% increase for butter to $6,359/MT.
The auction results show that cheddar was up 2.4% to $5,684, while skim milk powder (SMP) rose 2.1% to $4,051/MT.
Meanwhile, anhydrous milk fat (AMF) recorded a 1.4% increase to $6,800/MT, while lactose stood at an average price of $1,567/MT (the percentage change for lactose was not given).