The board of Ornua (formerly known as the Irish Dairy Board) met on Tuesday and set a PPI on 91.5 for August, down just 0.3 from the July PPI. The July PPI fell by 3.4 to 91.8.

Despite the slight fall, the PPI is at its lowest level since 2011.

At farmgate level, this equates to a return of 26.96c/litre.

The PPI is a monthly indicator of market returns on dairy products sold by Ornua and the previous lowest level occurred in July 2011.

In the coming days, the boards of the various co-ops will meet to set a price for August milk.