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Last week Ornua released its August purchasing price index (PPI), which lifted slightly from 101.7 to 101.8.
This reflects the steady market for a basket of dairy products. When we adjust for inclusion of the Ornua value premium for August, it brings the ex-VAT price to 29.1c/l, up from 28.7c/l in July.
Some co-ops have the capacity to improve returns and lift themselves off the bottom of the price table
The July Irish Farmers Journal monthly milk league average price at base solids was 29.3c/l, ranging from 30.2c/l for the west Cork co-ops down to between 29c/l and 28.6 c/l for the big players Kerry, Dairygold and Glanbia.
Ornua changes
On Wednesday the Ornua board agreed significant changes to its structure.
Lakeland will meet on Friday to decide August milk price while Glanbia will also meet on Friday.
IFA’s Tom Phelan said: “Some co-ops have the capacity to improve returns and lift themselves off the bottom of the price table. Suppliers expect the August price to reflect this.”
ICMSA’s Ger Quain said EU prices had increased and it was not unreasonable for Irish dairy farmers to expect their milk to be at, or above, the EU average.
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