Latest news with #OrnuaValue
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.
Agriland
21-04-2025
- Business
- Agriland
What's the secret of Kerrygold's success in the US?
It is not every CEO that ventures out of the boardroom to go to a supermarket and stand beside a chilled display cabinet to find out what consumers really think of a product – but when comes down to Kerrygold, normal rules tend not to apply. Last year more than 12 million retail packs of Kerrygold butter and cheese were sold every week in 2024 throughout the world and according to latest figures the brand also reached 'a record number of US households' last year. By the end of 2024 Kerrygold was the number two branded butter in the US and the number 'two block butter brand' and the fastest-growing brand in the category in the UK, while in Germany it was the number one butter brand in the market. None of this, according to Conor Galvin, the CEO of Ornua which owns the Kerrygold brand – and a man who stands in stores 'asking consumers why they buy Kerrygold and what they use it for' – is any accident. 'Kerrygold is 60 years old, it does take patience in terms of developing markets and even in the US market, it has taken us around 20 years to get to where we are,' he said. Kerrygold But it does appear that over those 20 years or so Ornua has managed to build what many businesses never achieve in the US market and that is brand loyalty. According to Galvin when he does ask US consumers why they buy the Kerrygold brand their 'faces light up'. 'It is a unique product in the US market, the experience of Kerrygold both in the appearance of it and in the performance of it – whatever you are using it for – is different to practically anything else you can buy in the US. 'We're very lucky to have a consumer that is so loyal,' Galvin said. Source: Ornua But the CEO of Ornua is also very clear that there is one key ingredient that is fundamental to the success of Kerrygold in the US and that is Irish farmers. 'Dairy farmers give us the fuel that we use to make the product, the grass fed milk that is skimmed, gives us the cream that we churn in Kerrygold Park and it really is the essence of the brand and that is how the product is unique,' Galvin added. He is also very clear about why it is so important to ensure that consumers not just in the US but on a global scale continue to remain loyal to the Kerrygold brand. 'Our purpose is to give a livelihood to Irish farm families and that is what all 2,800 people in Ornua are focused on doing. 'For Ornua, the focus remains on value growth and ensuring we maximise the return for every litre of milk,' he said. The co-op's annual report for 2024 shows that Ornua purchased more than €2 billion 'premium Irish dairy products' last year and also delivered an Ornua Value Payment of €72.8 million for the year, made up of cash bonuses and additional premiums paid to its member co-ops. According to Galvin Irish dairy 'remains a unique proposition' that not just US consumers are loyal to but that 'the world wants'.
