Ornua's purchase price index (PPI) fell by over 3% in March, the co-op reported this Wednesday.

"The adjustment for March reflects lower butter, powder and cheese prices," an Ornua spokesperson told the Irish Farmers Journal.

The index is worth 29.4c/l excluding VAT, based on Ornua’s product purchase mix and assuming processing costs of 6.5c/l. This is the lowest point since last April.

Co-ops will start setting milk prices for March in the coming days and any drop would hit farmers at a time when seasonal milk supply is ramping up.

Farming organisations have urged processors to hold milk prices and at least match the PPI value.