The Ornua Purchase Price Index (PPI) for August has jumped from 81.8 in July to 85.8 in August.

The PPI index is a monthly indicator of market returns on dairy products sold by Ornua (typically butter, cheese, whole milk powder and protein products), relative to comparable returns generated in a base year (2010).

This is the highest the PPI index has been in the past eight months. In December 2015, the index was 86.6. It fell to 85.7 in January 2016 and dropped steadily until July.

The jump in the PPI index follows three consecutive increases in the prices paid at the Global Dairy Trade auction during the past weeks.

Dairy co-ops

The improved sentiment being felt in dairy markets was reflected in the prices paid by dairy co-ops for July. The majority of co-ops increased their milk price for July, which could deliver up to €500 for the average farm.

Milk prices for August are due to be set by co-ops in the coming days.

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