Latest news with #Ornua
Arabian Business
6 days ago
- Business
- Arabian Business
Irish food and drink exports to Middle East and Africa hit $624m in 2024
Ireland's food and drink exports to the Middle East and North Africa (MENA) region reached €546.9 million ($624m) in 2024, underlining the region's growing importance for the country's agri-food sector, according to Bord Bia – The Irish Food Board. The milestone was announced alongside findings from Bord Bia's second annual CEO Pulse Survey, which reflects the perspectives of Irish food and drink companies responsible for nearly €11bn ($12.5bn) in global exports—two-thirds of the nation's total export value. The survey revealed that 56 per cent of Irish food and drink exporters anticipate growth in the MENA region in 2025, despite ongoing geopolitical and economic challenges. Irish food exports to Middle East Exporters cited robust consumer demand, rising interest in sustainably sourced products, and deepening trade relationships as key drivers of optimism. Kieran Fitzgerald, Regional Director for the Middle East and Africa at Bord Bia, said: 'Irish food and drink companies continue to see the Middle East and Africa as high-potential markets. 'The scale of export performance in 2024, paired with strong sentiment from exporters, highlights Ireland's growing reputation as a provider of trusted, high-quality food and drink solutions for the region.' A major contributor to this growth is Ornua, Ireland's largest dairy exporter, which continues to expand its presence in the region. David Butler, Managing Director, Ornua Ingredients International, said: 'The Middle East continues to represent a key growth market for Ornua, with rising demand for high-quality, innovative dairy solutions across the region. 'Our investment in Saudi Arabia underlines our long-term commitment to the region, enabling us to strengthen local partnerships, respond more quickly to customer needs, and deliver market-specific solutions. 'With its strategic location and strong trade ties, Saudi provides an ideal base from which to support our customers and expand our presence across the wider MENA market.'
Agriland
6 days ago
- Business
- Agriland
Dairy trade: Further drop for Ornua PPI in May
The Ornua Monthly Purchase Price Index (PPI) for the month of May 2025 has seen a further decrease, following the same trend as the previous month. The PPI for May is 153.2, down from April's figure of 156.9. Ornua's estimate of member co-ops processing costs was 9.6c/L in the month (9.6c/L in the previous month). Ornua has stated that these estimated processing costs: Are based on Ornua's estimate of the average cost of processing the Ornua basket of products, which is not representative of any individual member co-op processor; Exclude any allowance for member co-op processor margin. Ornua calculation There are also based on an updated methodology (from March 1, 2024) which uses Ornua's initial estimate of member co-op processing costs from 2020 as a base and indexes the variable elements to external indices which will be updated quarterly in arrears. Ornua said that the estimated processing costs will also rise and fall quarterly in line with the movements in the variable costs (most notably energy) as per the external indices. After deducting estimated processing costs, Ornua's PPI implies an indicative return of 45.0c/L 5.1% VAT inclusive (decreased from the previous month of 46.3C/L) for milk of 3.6% fat and 3.3% protein which is net of Ornua costs to market. The results reflect weaker market returns for the month of May. In addition to the above, the 'Ornua Value Payment' payable to member co-ops in the month is €8.3m million, which equated to 3.7% of gross purchases in the month. The PPI relates to product settlements/payments for the month and for reasons of seasonality is not directly aligned with milk production and payment, according to Ornua. Dairy trade Meanwhile, yesterday (Tuesday, June 3) the Global Dairy Trade (GDT) index saw a second successive decrease in the index figure following the latest trading event. The index decreased by 1.6%, for an average price of €3,794 per metric tonne (mt). The index figure is now at 1,311. Of the 12 most recent GDT auction events back to December 17 (including Tuesday's event), the index has decreased six times, increased five times, and gone unchanged on one occasion. 166 bidders participated in yesterday's event, with 117 bidders emerging from 15 bidding rounds. The event lasted for two hours and 14 minutes, in which 16,307mt of product was sold.
Agriland
07-05-2025
- Business
- Agriland
Dairy markets: Ornua PPI sees another drop for April
The Ornua Purchase Price Index (PPI) has seen another decrease in the latest figure for April, the dairy business has said. The PPI figure stands at 156.9 for last month, down from 159.6 for March. After deducting the estimated processing costs for Ornua's member processing costs, the latest PPI implies an indicative return of 46.3c/L, inclusive of 5.1% VAT, for milk at 3.6% fat and 3.3% protein. This price is net of Ornua's costs to market. The figure is down on the indicative price for March of 47.4c/L. The estimated processing costs for member dairy co-ops for the second quarter of the year is 9.6c/L, up from 9.5c/L for the first quarter. The updated processing cost was used for determining the indicative return for April. The estimated processing costs are based on Ornua's estimate of the average cost of processing the Ornua 'basket of products', which is not representative of any individual member co-op processor. The processing costs excludes any allowance for member co-op processor margin. In determining the cost, Ornua used its initial estimate of member co-op processing costs from 2020 as a base and links the variable elements of the costs to external indices which will be updated quarterly in arrears. The processing costs will rise and fall quarterly in line with the movements in the variable costs (most notably energy) in the external indices. Ornua said that the decreased PPI and indicative price 'reflect weaker market returns for the month of April'. In addition to the PPI announcement, Ornua also confirmed that the 'Ornua value payment' to member co-ops in the month of April is €11.8 million, which equated to 6% of gross purchases in the month. Dairy markets In other dairy market news, the average Global Dairy Trade (GDT) price index increased by 4.6% following the latest auction yesterday (Tuesday, May 6). There were a total of 175 bidders in the event which saw 16,714 metric ton (mt) of product sold. The average selling price was €3,988/mt in the auction, which lasted for more than three hours, during which there were 101 winning bidders and 26 bidding rounds. The GDT Price Index now stands at 1,344 today – compared to the previous index figure on April 15 which was 1,285.
Agriland
25-04-2025
- Business
- Agriland
Ornua: Some buyers taking ‘wait-and-see' approach due to tariffs
Ornua, the largest exporter of Irish dairy products, has said that the decision by the US to impose new tariffs means some buyers are adopting a 'wait-and-see' approach. In its market report for April, the co-op said that the new US tariffs will 'disrupt trade and weaken economic growth'. 'After a relatively stable quarter one, this will dampen market sentiment during a period when demand and pricing usually lifts,' it stated. 'The full impact of these tariffs is currently unclear. While some commodities will be affected more than others, tariffs disrupt trade and weaken economic growth and demand. 'Thus, while global milk supply is flat and activity usually improves in quarter two, demand concerns will inevitably affect market sentiment,' the report added. Earlier this month, US President Donald Trump announced a 90-day pause on the higher rate of tariffs on imports to the US from the EU and other countries, except China. Trump said all countries that had not retaliated against US tariffs would only face a blanket US tariff of 10% until July. Under the original announcement, agri-food produce from Ireland would have been impacted by a 20% tariff on exports from the EU. Ornua The report also outlined that global milk supply was flat in February and annual growth is unlikely to exceed +0.5%, though milk solids may be stronger. Ornua said that European milk supply has been weaker than expected and the scope for volume growth appears limited. In the European Union, milk flows fell in January (-0.7%) and February (-1.2%) with reports that bluetongue is still affecting output. 'It's likely volumes will fall in 2025 with both bluetongue and food and mouth disease currently on the radar. Though supply may be better once adjusted for solids,' the report said. Flows in Ireland lifted by 9.4% in January and are expected to increase again in February. In the UK, milk flows were strong in quarter four (Q4) and into quarter one (Q1). In Germany, flows fell by approximately -2.2% in January and -3.2% in February. Collections in France fell by approximately -1.7% in January and -2.6% in February. Ornua said that output in the Netherlands had been showing signs of stability but dropped off in January and February. Dairy commodity price movement in February compared to January Source: Ornua In the US, collections improved in February and supply is noticeably stronger when adjusted for solids. The report shows that New Zealand collections in grew again in February supported by favourable weather and a strong milk price. While flows are improving in Argentina (up 8.5% in the first two months of the year), they are modest historically. Ornua said that reports suggest flows are contracting in China with low margins impacting.
Irish Times
23-04-2025
- Business
- Irish Times
Aviva Ireland reinsurance deal with parent depresses profit at Irish business
Aviva Insurance Ireland ceded €70 million of net underwriting profit to its UK owner last year as it reinsured most of the motor, home and commercial insurance business written in the Republic with its parent. While the reinsurance deal with its parent – known in the industry as a quota share agreement – allows Aviva Insurance Ireland to share risks written in the Republic more widely across the group, it also depresses the reported profitability of the local entity in good times. Aviva Insurance Ireland, the third largest insurer in the Republic by premium income, reported an underwriting profit of €15 million last year, the company said in its latest annual solvency and financial condition report. The report notes that €70 million in net underwriting profit ended up with the UK unit under the reinsurance deal. The company reported a pretax profit of €22 million for the year, after €20 million of income from its investments portfolio and €13 million of certain expenses were also included, according to the report. READ MORE Aviva Insurance Ireland's gross written premium income rose 11.6 per cent last year to €668.1 million, it said. The figure includes some European commercial insurance business written through a UK branch of the company. Aviva Insurance Ireland reported in February that its business in Ireland generated €584 million of gross written premiums. This suggests that about €84 million of premiums were written through the UK branch. '1 in 5 US households consume Kerrygold' – Ornua CEO Conor Galvin Listen | 33:47 The Irish company has an arrangement in place to reinsure 70 per cent of general and health insurance risks – essentially passing on associated premiums – with its immediate parent, UK-based Aviva Insurance Limited. The deal sees it hand over 85 per cent of its European mobile phone insurance risk and 100 per cent of all other business written, according to the solvency and financial condition report. Of the €668.1 million of business written last year, €506.8 million was accepted by its immediate UK parent – the biggest amount ceded overseas by a general insurer in the Irish market. It equated to almost 76 per cent of total premiums. A spokeswoman for the insurer declined to comment on the intragroup reinsurance arrangements. Of the top five insurers operating in the State, only RSA Insurance Ireland, part of London-based RSA Group, shares such a percentage of risk. RSA Ireland ceded €306.8 million of its €399.9 million of gross written premiums last year. 'The main purpose of the group [reinsurance] treaty is to ensure effective capital, earnings management and to facilitate the company's underwriting capacity for its customers,' a spokesman said. 'The profit or loss ceded to the parent company depends on where the claims arise by lines of business.' The underlying division of income from the reinsurance contracts is complicated, however, by reinsurance commissions received by Irish entities from their parents to cover certain administrative and other costs associated with writing the original insurance coverage. Allianz Ireland has the third-highest intragroup reinsurance deal among the main insurers in the market, with a 50 per cent quota share agreement with Allianz Re Dublin DAC. Both are part of the German-based Allianz Group. Axa Ireland, the largest insurer in the Republic, and FBD Holdings, the fourth-largest and only indigenous Irish player, reinsured 2.6 per cent and 7.6 per cent of the business they wrote last year, according to data in their reports. FBD reinsures with third parties; Axa Ireland did not report any quota share deal with its French parent in its report.
