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The PPI, which represents the price of dairy products exported by Ornua, stood at 105.4 last month.
"This is up from 100.4 in April which reflects stronger returns in the month for butter and powders," a spokesperson for Ornua said.
This is consistent with recent butter quotes over €6,000/t on European spot markets.
The latest PPI value is equivalent to a milk price of 29.79/l excluding VAT, assuming processing costs of 6.5c/l.
Rebound
The index had been in continuous decline since it reached a high of 116.4 in October, falling by nearly 14% over the winter and spring. The May rebound means dairy commodity prices have nearly caught up with 2017 levels, after falling well behind in March and April.
On Tuesday, Glanbia set its May milk price lower than the PPI return while Lakeland set its price higher. More co-ops are due to announced milk prices in the coming days.
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