Latest news with #OrnuaPurchasePriceIndex
Agriland
4 days ago
- Business
- Agriland
Ornua PPI price sees slight increase for June
The Ornua Purchase Price Index (PPI) indicative price for June has seen a slight increase, reflecting stronger market returns for some products in the month. The Ornua PPI indicative price return for last month is 45.5c/L, inclusive of 5.1% VAT, for milk at constituents of 3.6% fat and 3.3% protein. This figure is net of Ornua costs to market, and is an increase on the 45c/L figure for May. The indicative return was determined from an index figure of 154.7 for June, which was up from the 153.2 figure for the previous month. The price also takes account of Ornua's estimated member processing costs, which were 9.6c/L during the quarterly period. 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 cost excludes any allowance for member co-op margins and is updated quarterly in line with variable external indices, and can rise or fall, depending on those indices, with energy costs being the main driver of changes in the estimated processing costs. Ornua said that its indicative price return for June "reflects stronger market returns in some categories for the month of June". According to the dairy business, the PPI relates to product settlements/payments for the month and, for reasons of seasonality, is not directly aligned with milk production and payment. Additionally, the 'Ornua Value Payment' payable to member co-ops in the month is €10.7 million, which equated to 3.7% of gross purchases in the month. In other Ornua news, the dairy processor has seen a number of wins at an international competition for cheese and dairy products. The International Cheese and Dairy Awards, which took place in Staffordshire in England, featured some 3,750 entries from various countries. According to Ornua, the competition is the world's largest cheese and dairy competition, and was judged by 'leading international industry experts'. The Irish dairy business said it won 23 awards in total, including four 'major trophies', six gold awards, six silver awards, and seven bronze awards.
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.
