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The Ornua purchase price index (PPI) has fallen from 106.4 to 99.8 for April.
This provides a price of 29.4c/l, VAT inclusive, based on Ornua’s product purchase mix and assumed costs of 6.5cpl.
“The reduction is due to sharp falls in powder and butter returns coupled with stable cheese returns,” Ornua said.
Milk prices
On Thursday morning, IFA national dairy chair Tom Phelan said that co-ops needed to recognise they had overdone the price cut in March and should not be liable for taking the full financial brunt of COVID-19.
“Co-ops cut the March milk price by too much, too soon, despite the fact they had sold product forward. The worst-case scenario which co-ops used to justify up to 2c/l March milk price has simply not materialised, as dairy prices have remained above intervention,” he said.
“Global dairy trade is slowly restarting as China comes out of lockdown. Chinese March 2020 dairy imports increased by 10% in total, while EU sales rose by over 20% in volume compared to March 2019.”
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