The Ornua Purchase Price Index (PPI) for the month of December has fallen to 125.5 compared with 125.8 in November.

This is a farmgate equivalent price of 35.3c/l, excluding VAT.

The price includes estimated member co-op processing costs of 7.6c/l (excluding any allowance for processor margin) for the Ornua portfolio.

The energy element of the processing cost is variable and changes each month depending on energy costs.

"In addition, the Ornua value payment payable to members co-ops in the month is €2.5m, which equated to 6.7% of gross purchases in the month," Ornua said in a statement.

"The result reflects seasonally quieter market demand through the month of December."