Key facts
- Ornua's May Purchase Price Index (PPI) was 129.8, up from 127.0 in April.
- The PPI measures market returns on dairy products.
- Estimated processing costs remained at 9.5c/L for May.
- The indicative return after processing costs was 36.6c/L (VAT inclusive).
- The Ornua Value Payment for May was €8.5 million.
Ornua has announced an increase in its May Purchase Price Index (PPI) to 129.8, up from 127.0 in the preceding month. The PPI serves as a monthly indicator of market returns for dairy products such as butter, cheese, and milk powders, benchmarked against a base year. Ornua's estimate for member co-operative processing costs remained unchanged at 9.5 cents per liter for May. After deducting these estimated processing costs, the PPI suggests an indicative return of 36.6 cents per liter, inclusive of 4.5% VAT, an increase from the previous month's 35.5 cents per liter. This figure is net of Ornua's marketing costs and is based on milk with 3.6% fat and 3.3% protein. The company also reported an 'Ornua Value Payment' of €8.5 million to its member co-ops for May, representing 7.1% of gross purchases for the month. Ornua stated that these results reflect improved market returns during May.