The board of Ornua is reviewing the assumed processing costs of 6.5c/l included in its purchase price index (PPI).

Ornua said an update would be shared when the work was completed. The Irish Farmers Journal understands processing costs are set to rise slightly, a move pushed for by dairy processors.

May’s index rose slightly based on higher powder returns and stable butter and cheese returns

The PPI tracks market returns for the typical mix of Irish dairy products and translates this into an estimated farmgate milk price. May’s index rose slightly based on higher powder returns and stable butter and cheese returns to give an estimated price of 29.9c/l including VAT.

Farm organisations have staunchly backed the continued publication of the PPI for the unique price transparency it provides.