Stronger powder returns drive increase in Ornua PPI for January

Ornua’s Purchase Price Index (PPI) has risen for the month of January, driven by strong powder returns, the Irish dairy exporter has confirmed.

In a brief statement to AgriLand this morning (Wednesday, February 3), a spokesperson for Ornua said:

“The Ornua PPI for the month of January is 107.3 and is up from 104.2 in the previous month.”

This converts to 31.4c/L including VAT, based on Ornua’s product purchase mix, an assumed member processing cost of 7c/L and excluding member margin.

The increase is driven by stronger powder returns, the Ornua representative added.

“In addition, the Ornua Value Payment payable to members in the month is €0.9 million, which equated to 6.5% of gross purchases in the month [year to date 6.5%],” the spokesperson concluded.

This follows the news yesterday that the Global Dairy Trade (GDT) index has posted an increase in the third auction of 2021 to mark six increases on the bounce in recent outings.

The most recent tender – event 277 – concluded with the GDT Price Index up 1.8%.

Lasting two hours and 17 minutes, yesterday’s event saw 181 bidders participate; after 17 bidding rounds, some 103 winning bidders emerged.

A total of 28,707MT of product was sold on the day. All products bar one that were available at the auction posted an increase in index.