Ornua Purchase Price Index Rises in May
Source: The DairyNews
The Ornua Purchase Price Index (PPI) for May has experienced an uptick compared to April, with the indicative price increasing by 1.1c/L. The PPI figure for May stands at 135.6, up from 132.6 in the previous month.
This latest PPI suggests an indicative return of 39.6c/L, inclusive of VAT, for milk containing 3.6% fat and 3.3% protein. This figure, net of Ornua’s marketing costs, marks an increase from April’s indicative price of 38.5c/L, reflecting improved market returns through May.
Ornua’s price accounts for an estimated member cooperative processing cost of 8.6c/L for May, adjusted quarterly according to external indices of variable costs, primarily energy, as per Ornua’s new estimated processing cost methodology introduced earlier this year.
“The PPI relates to product settlements/payments for the month and, due to seasonality, is not directly aligned with milk production and payment,” Ornua stated.
Additionally, the Ornua Value Payment to member co-ops in May is €10.9 million, equating to 6.1% of gross purchases for the month.
As dairy processors prepare to announce their milk prices for May supplies, the Irish Creamery Milk Suppliers Association (ICMSA) has called for a “strong signal” on milk price. The ICMSA asserts that dairy markets have advanced "considerably" during May.
“Dairy farmers need an increase in milk price, justified by the market. Dairy farmers need a strong signal from their milk processor that they understand the current pressures by delivering a significant milk price increase for May,” stated Noel Murphy, ICMSA Dairy Committee chairperson.
Murphy highlighted the high input costs and reduced milk supplies due to weather, costs, and nitrates pressures, urging processors to recognize the financial strain on farmers.
“The ICMSA believes that a milk price of 45c/L is not only justified but necessary to restore confidence in the sector. Dairy farmers are also expressing frustration with gimmick payments, insisting on fair base prices instead,” Murphy added.
Ornua’s price accounts for an estimated member cooperative processing cost of 8.6c/L for May, adjusted quarterly according to external indices of variable costs, primarily energy, as per Ornua’s new estimated processing cost methodology introduced earlier this year.
“The PPI relates to product settlements/payments for the month and, due to seasonality, is not directly aligned with milk production and payment,” Ornua stated.
Additionally, the Ornua Value Payment to member co-ops in May is €10.9 million, equating to 6.1% of gross purchases for the month.
As dairy processors prepare to announce their milk prices for May supplies, the Irish Creamery Milk Suppliers Association (ICMSA) has called for a “strong signal” on milk price. The ICMSA asserts that dairy markets have advanced "considerably" during May.
“Dairy farmers need an increase in milk price, justified by the market. Dairy farmers need a strong signal from their milk processor that they understand the current pressures by delivering a significant milk price increase for May,” stated Noel Murphy, ICMSA Dairy Committee chairperson.
Murphy highlighted the high input costs and reduced milk supplies due to weather, costs, and nitrates pressures, urging processors to recognize the financial strain on farmers.
“The ICMSA believes that a milk price of 45c/L is not only justified but necessary to restore confidence in the sector. Dairy farmers are also expressing frustration with gimmick payments, insisting on fair base prices instead,” Murphy added.
