Dairy markets received a further boost this week after the GDT recorded its third straight lift with the benchmark dairy index rising a further 7.7%.

The GDT has now risen a cumulative 27% since the beginning of August, albeit from a very weak base, and sentiment has improved in markets.

Closer to home, Ornua has sharply lifted its Purchase Price Index (PPI) by four points to 85.8 for August – the highest level the PPI has been since December last year.

The PPI is an indicator of the market returns for dairy products that Ornua sells.

The PPI rise reflects the growth in prices across Europe for dairy commodities since May, which is being driven by strong fat demand.