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The Ornua purchasing price index (PPI) is up once again for October. The result, which was published Wednesday 4 November, put the index at 104.1 up from 102.8.
When adjusted for the Ornua value payment and accounting for 7c/l assumed processing costs, it puts the October equivalent milk price at 31c/l excl VAT (32.7c/l incl VAT), up from 30.4c/l (32 c/l incl VAT) in September.
Using the index, we can calculate the October equivalent price at 28.6 c/l and then add on the estimate of the Ornua value payment of 2.39 c/l to get the equivalent of 31 c/l ex VAT (32.7c/l incl VAT). Farmers can compare this Ornua price directly with their own co-op milk prices.
GDT
The Global Dairy Trade (GDT) price index fell 2% this week. It follows three consecutive positive results. The average price now stands at just under $3,096 (€2,652.39). The key product for the auction is whole milk powder and it dropped by 2% to $2,985 (€2,557.29). Butter was up, but skim milk powder was down.
IFA dairy chair Tom Phelan said: “The dairy sector has proven robust amongst the COVID-19 uncertainty, as clearly seen by the slight but upward trend of the Ornua PPI each month. This gives farmers confidence going into the backend.”
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