This is a subscriber-only article
Ornua's purchase price index (PPI) of dairy commodities receded by 0.6% to 110.4 in September, down from 111.1 in August.
The mix of commodities exported by Ornua now returns a milk price equivalent to 31.6c/l excluding VAT, assuming 6.5c/l processing costs.
The PPI value is now lagging behind last year's level, after catching up in August. It has been on an upward trend since April, with a small dip in July.
Processors will set September milk prices in the coming days, and IFA dairy chair Tom Phelan said this week that only west Cork co-ops in the Carbery group had returned the PPI equivalent price to their suppliers in August, according to the Irish Farmers Journal milk league.
Phelan said: "1c/l on September milk is fully justified, and should be paid on base prices by all co-ops"
"Compared to EU average dairy returns for the month of September, the prices paid by co-ops for August [with the exception of the west Cork co-ops] fall short by between 1.4c/l and 2.34c/l."
SHARING OPTIONS: