Ornua’s purchase price index (PPI) has increased to the equivalent of 42.84c/l, excluding VAT, for September.

This is up 2.5c/l on the August PPI.

The lift in the PPI reflects increased market returns throughout the month of September, Ornua said.

The PPI stands at 151.4 points for September, up from the previous month at 144.7.

Ornua’s estimate of member co-ops processing costs was 8.59c/l, excluding VAT.

The Ornua value payment payable to member co-ops in the month is €7.6m, which equated to 3.9% of gross purchases in the month.

Global Dairy Trade

Dairy prices continue to rise at the most recent Global Dairy Trade (GDT) auction, with prices up by 1.2% last Tuesday.

This is the second successive increase and the fifth in just two months since there was a sizeable drop of 6.9% on 2 July this year. Since then, prices at the auction have rebounded by 8%.

Irish dairy co-ops will begin to set milk price in the coming days for September supplies.