Ornua PPI Shows Slight Decline in January 2024, Stands at 125.1
Source: The DairyNews
The Ornua Purchase Price Index (PPI) for January 2024 has recorded a slight decrease, standing at 125.1, down from 125.5 in December 2023. Despite this decline, the estimated member co-op processing costs of 7.5c/L, excluding any allowance for processor margin, imply an indicative return of 37.1c/L, VAT inclusive.
Ornua confirmed that this figure remains unchanged from the indicative price of 37.1c/L based on the index in December 2023. The energy cost component of the processing cost is variable, changing monthly based on energy costs.
The January 2024 result is attributed to seasonally quieter market demand throughout the month. The Ornua Value Payment to member co-ops for the month is €0.2 million, equating to 1.2% of gross purchases in that period.
In related news, Conor Galvin, the current chief executive of Dairygold, will be leaving the co-op to assume the role of the new chief executive at Ornua. Galvin, who joined Dairygold in 2014 and became CEO in 2022, will take up his position with Ornua in the coming months.
Additionally, the Global Dairy Trade (GDT) price index has increased by 4.2% in the latest trading event, marking the fifth consecutive increase. The index now stands at 1,106, with 24,836MT sold at an average price of $3,571/MT. All products offered at the event, except mozzarella, saw an increase in the price index. Butter recorded the most significant increase at 10.3%, reaching an average price of $6,516/MT, while mozzarella experienced a 1.8% decrease to $3,760/MT.
The January 2024 result is attributed to seasonally quieter market demand throughout the month. The Ornua Value Payment to member co-ops for the month is €0.2 million, equating to 1.2% of gross purchases in that period.
In related news, Conor Galvin, the current chief executive of Dairygold, will be leaving the co-op to assume the role of the new chief executive at Ornua. Galvin, who joined Dairygold in 2014 and became CEO in 2022, will take up his position with Ornua in the coming months.
Additionally, the Global Dairy Trade (GDT) price index has increased by 4.2% in the latest trading event, marking the fifth consecutive increase. The index now stands at 1,106, with 24,836MT sold at an average price of $3,571/MT. All products offered at the event, except mozzarella, saw an increase in the price index. Butter recorded the most significant increase at 10.3%, reaching an average price of $6,516/MT, while mozzarella experienced a 1.8% decrease to $3,760/MT.
