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The Ornua purchase price index (PPI) for the month of October has increased to the equivalent of 34.38c/l excluding VAT.
The result reflects stronger market returns through the month of October, an Ornua spokesperson said.
This a rise of 1.61c/l from the 32.76c/l excluding VAT from September.
The PPI stood at 122.3 points for October, up from 117.4 for the previous month.
The price includes estimated member co-op processing costs of 7.5c/l (excluding any allowance for processor margin) for the Ornua product portfolio.
“The energy cost element of the processing cost is variable and changes each month depending on energy costs.
“In addition, the Ornua value payment payable to members in the month is €5.6m, which equated to 6.1% of gross purchases in the month,” the spokesperson said.
The price lift comes as processors prepare to set a milk price for October supplies of milk.
Outlook
Rabobank has forecast a more positive outlook for dairy markets into 2024.
Dairy analyst Richard Scheper told the Irish Farmers Journal that there is more “upside potential” next year.
Scheper pointed out that consumer demand had improved on the domestic European market and on the export front and that this provided scope for milk price improvements into the first half of 2024.
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