The Ornua purchase price index (PPI) for June increased to 101.7 percentage points, equivalent to a milk price of 28.55c/l excluding VAT.

The price is based on Ornua’s product purchase mix and assumed costs of 6.5c/l.

This is a marginal increase on the May PPI is attributable to stable returns across the Ornua product mix.

June milk price

Milk suppliers are expecting a significant upward lift in prices when co-op boards meet to set June milk price next week.

IFA dairy chair Tom Phelan said co-ops should now have the confidence to increase June milk prices by at least 1c/l.

Patience

The ICMSA said last week that farmers’ patience on milk prices had ended.

Dutch milk processor FrieslandCampina has increased its July base milk price by 0.5c/l to 33c/l at 3.57% protein and 4.42% fat based on rising prices in neighbouring co-ops.

In May, French processors Lactalis and Danone paid almost 5c/l more than Irish prices.

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Irish milk prices set to jump for June

PPI margins row central to co-ops' and farmers' futures