Ornua’s PPI on the increase for the month of August

An increase of 0.9 percentage points was recorded in Ornua’s Purchase Price Index (PPI) for the month of August.

The PPI for the seventh month of the year equated to 110.1%; this increased to 111% for August. This increase represents the fourth consecutive increase reported in Ornua’s PPI since April.

Earlier this year, the PPI remained relatively static; it began the year at 105.4%, before decreasing to 105% in April.

Since then increases of 1.8, 3.2 and 0.1 percentage points have been recorded for May, June and July respectively. Currently, Ornua’s PPI is at its highest level in the past three years.

Ornua’s decision to increase its PPI for the month of August is in line with some processors’ announcing milk price increases for August supplies yesterday.

Glanbia Ireland and Lakeland Dairies were the first processors to announce their milk prices for the month of August.

Glanbia increased its milk price by 1c/L, meaning that its suppliers will receive a base price of 35c/L including VAT for milk produced last month.

The processor also announced that it will pay its milk suppliers a 1c/L bonus on all milk supplied between January and June of this year.

Meanwhile, Lakeland Dairies followed suit by increasing its milk price by 1c/L. The processor also announced a lactose bonus of 0.28c/L, which brings the Lakeland milk price to 35.28c/L including VAT for the month of August.

These increases from Glanbia and Lakeland Dairies represent the fourth consecutive monthly 1c/L price rise announced by the processors.

Other processors are expected to meet in the coming days to announce their milk prices for the eighth month of the year.