The Ornua purchase price index (PPI) for May increased to 101.1 percentage points, equivalent to a milk price of 28.36c/l excluding VAT.
The price is based on Ornua’s product purchase mix and assumed costs of 6.5c/l.
The May PPI is up from 99.8 points in the previous month.
Ornua said that the increase is due to higher powder returns coupled with stable cheese and butter returns.
May milk prices
The majority of processors cut milk prices for April, with Aurivo the only processor to hold price.
Co-op boards will begin to meet next week to set May milk prices.
The IFA dairy chair Tom Phelan has said that as more countries get out of lockdown and markets reopen, spot prices and other market quotes in the last number of week weeks, and even the latest GDT auction, have improved from low levels.
“It is now time for co-ops to hold milk prices and to let the rising market meet them,” he said.
Maximise May price
IFA president Tim Cullinan has called on co-ops to reflect on the significant dairy product price improvements of the last six weeks, which allow them to maximise the May milk price to support farmers’ stressed cashflow.
He said the Ornua PPI increase of 1.3 points to an equivalent of 29.9c/l including VAT is the latest evidence to suggest co-ops must maximise their May milk price.
“2020 is a difficult year for farmers. Co-ops must review their expectations for profit and focus on digging deeper into their own cost structures to support their suppliers. The recent improvements in market returns will help them to take a more positive stance on milk prices,” Cullinan said.
Read more
April milk price cut ‘frustrating’ for farmers
€200,000 funding for carbon-neutral dairy farm in Cork
Aurivo holds base price for April milk
The Ornua purchase price index (PPI) for May increased to 101.1 percentage points, equivalent to a milk price of 28.36c/l excluding VAT.
The price is based on Ornua’s product purchase mix and assumed costs of 6.5c/l.
The May PPI is up from 99.8 points in the previous month.
Ornua said that the increase is due to higher powder returns coupled with stable cheese and butter returns.
May milk prices
The majority of processors cut milk prices for April, with Aurivo the only processor to hold price.
Co-op boards will begin to meet next week to set May milk prices.
The IFA dairy chair Tom Phelan has said that as more countries get out of lockdown and markets reopen, spot prices and other market quotes in the last number of week weeks, and even the latest GDT auction, have improved from low levels.
“It is now time for co-ops to hold milk prices and to let the rising market meet them,” he said.
Maximise May price
IFA president Tim Cullinan has called on co-ops to reflect on the significant dairy product price improvements of the last six weeks, which allow them to maximise the May milk price to support farmers’ stressed cashflow.
He said the Ornua PPI increase of 1.3 points to an equivalent of 29.9c/l including VAT is the latest evidence to suggest co-ops must maximise their May milk price.
“2020 is a difficult year for farmers. Co-ops must review their expectations for profit and focus on digging deeper into their own cost structures to support their suppliers. The recent improvements in market returns will help them to take a more positive stance on milk prices,” Cullinan said.
Read more
April milk price cut ‘frustrating’ for farmers
€200,000 funding for carbon-neutral dairy farm in Cork
Aurivo holds base price for April milk
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