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Ornua has announced that it has lifted its December price purchase index (PPI) by 1.7%.
The processor’s co-op said that the increase to 159.3 for last month’s index, reflected the strong market returns for December.
This is the fifth consecutive increase in Ornua’s PPI since July with the index jumping 27% over the course of 2024.
The December PPI leaves an indicative base return at 45.42c/l, excluding VAT, for milk of 3.6% fat and 3.3% protein which is net of Ornua costs to market. This is up from the 44.56c/l, excluding VAT, offered for November.
A spokesperson for Ornua said: “The results reflect strong market returns for the month of December.”
Member co-ops
According to the processor’s co-op, its estimate of member co-ops processing costs was 8.6 c/l last month, the same as in November.
In addition, the Ornua Value Payment payable to member co-ops in the month is €2.2m, which equated to 2.2% of gross purchases in the month.
Ornua added that its processing cost figure is averaged across its product offering and not necessarily representative of member co-ops’ processing costs and that the PPI excludes a member co-op margin.
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