The PPI for November stands at 99.4, which is up 3.6% from 95.9 in October. According to Ornua, a PPI of 99.4 equates to farmgate price of 29.2c/litre (including VAT).

Ornua said the near four-point PPI increase “reflects higher returns in the month across most products”.

The Ornua Purchase Price Index

In the coming days, Irish co-ops will set November milk prices with the ICMSA again calling for a price of 30c/l to be returned to Irish farmers.

The association’s dairy chair Gerald Quain said farmers are now expecting higher returns from their co-ops.

“The expectation now within dairy farming is that the 30c/l marker must be breached in the next round of price announcements.

The 1c/l price rise last month was demonstrably short of the market realities and just did not reflect the obvious buoyancy in markets. This upward sentiment has been sustained over the month and, interestingly, whole milk powder has now taken over butter as the commodity in high demand,” Quain said.

33c/l in 2017

The Irish Farmers Journal exclusively reported that Dairygold CEO Jim Woulfe is predicting a VAT-inclusive base price of 33c/l in 2017.

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