Ornua PPI Declines Again in May amid Weak Dairy Markets
Source: dairynews.today
The Ornua Purchase Price Index (PPI) for May 2025 declined to 153.2 from April’s 156.9, reflecting weaker market returns.
The Ornua Monthly Purchase Price Index (PPI) for May 2025 continues its downward trajectory, reporting a decrease to 153.2 from April’s figure of 156.9. This decline is indicative of weaker market returns throughout the month. The estimated processing costs for member co-ops remained stable at 9.6c/L. The processing costs are evaluated based on the average cost associated with the Ornua basket of products and do not represent any individual member co-op processor.
The methodology for estimating these costs was updated in March 2024, built upon a base from 2020 and adjusted quarterly based on external indices, particularly those related to energy. Correspondingly, an indicative return of 45.0c/L with VAT included, adjusted from 46.3c/L, was reported for typical milk composition of 3.6% fat and 3.3% protein, post-processing cost deductions. In fiscal terms, ‘Ornua Value Payment’ to member co-ops amounted to €8.3m, equating to 3.7% of gross purchases in the month.
Simultaneously, the Global Dairy Trade (GDT) index also observed a 1.6% reduction, positioning the index at 1,311 and setting an average price of €3,794 per metric tonne. Out of the last 12 GDT auctions, the index fell in six instances, potentially forecasting ongoing volatility in the dairy market.
The methodology for estimating these costs was updated in March 2024, built upon a base from 2020 and adjusted quarterly based on external indices, particularly those related to energy. Correspondingly, an indicative return of 45.0c/L with VAT included, adjusted from 46.3c/L, was reported for typical milk composition of 3.6% fat and 3.3% protein, post-processing cost deductions. In fiscal terms, ‘Ornua Value Payment’ to member co-ops amounted to €8.3m, equating to 3.7% of gross purchases in the month.
Simultaneously, the Global Dairy Trade (GDT) index also observed a 1.6% reduction, positioning the index at 1,311 and setting an average price of €3,794 per metric tonne. Out of the last 12 GDT auctions, the index fell in six instances, potentially forecasting ongoing volatility in the dairy market.
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