Ornua’s Purchase Price Index (PPI) has continued its upward trend for 2017, having increased from 114.3 in September to 116.4 in October.
This represents an increase of 2.1 percentage points in the space of a month. The increase for the tenth month of this year represents the sixth consecutive monthly increase in 2017.
The PPI stood at 105 in the month of April; since then it has increased month-on-month to its current level.
Ornua announced the largest increase in its PPI this year for the month of September, when it jumped by 3.3 percentage points.
Currently, the PPI is at its highest level since the July to August period of 2014 – which is over three years ago.
Ornua’s Purchase Price Index for October is 116.4, up from 114.3 in September. For more info on the PPI; https://t.co/Uc4lYzdQGA pic.twitter.com/zjFqICDR7m
— Ornua (@ornua) November 8, 2017
This increase in Ornua’s PPI is sure to give farm organisations ammunition as they call for processors to up their milk prices for the month of October. Processors are set to announce their milk prices for the tenth month of this year in the coming days and weeks.
Disruption at Ornua facility
Meanwhile, Ornua confirmed yesterday that a fire severely damaged a mozzarella production facility at Ornua Ingredientes Espana, Avila, Spain.
No one was injured in the incident and the fire was brought under control by emergency services, it was revealed.
Ornua and the Spanish authorities are currently investigating the cause of the fire. Ornua thanked the Spanish emergency services for their hard work in dealing with the fire.
In the interim – as part of its business continuity planning – Ornua Ingredientes Espana’s immediate commitments will be met from the company’s other European and North American manufacturing bases, it was announced.