Latest news with #OrnuaMonthlyPurchasePriceIndex
Agriland
4 days ago
- Business
- Agriland
Slight decrease in Ornua PPI for July
The Ornua Monthly Purchase Price Index (PPI) for the month of July 2025 is 153.6, down from the previous month at 154.7. Ornua's estimate of member co-ops' processing costs was 9.3c/L in the month (9.6c/L in the previous month). Ornua has said that it should be noted that these estimated processing costs: 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; Are 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; Will 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 45.5c/L, 5.1% VAT inclusive (unchanged from the previous month of 45.5c/L) for milk of 3.6% fat and 3.3% protein which is net of Ornua costs to market. The results reflect somewhat weaker market returns for the month of July, offset by lower estimated processing costs. In addition to the above, the 'Ornua Value Payment' payable to member co-ops in the month is €8.2 million, which equated to 3.8% 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. Recently, Ornua announced that global milk collections increased by 1.7% in May, driven by growth in the US and Europe. The latest Ornua Global Dairy Market Report outlined that while the global milk supply outlook has improved, flows are "unlikely to be a major burden". Milk flows across the EU grew by 1.2% in April and a further 0.3% in May due to increases in France, Poland, and Ireland. In Ireland, flows rose sharply in March and April, and by a further 6.8% in May, albeit from a low base. The annual forecast for the 27 EU member stated has been revised up. However, the report states that growth expectations are modest and may be impacted by factors such as weather or animal health issues.
Agriland
04-06-2025
- 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.
