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The Ornua PPI now stands at 86.6, down from 88.2 in November.
The index is calculated from the price of dairy commodities sold by Ornua, including butter, cheese, whole milk powder and protein products.
The PPI has been on a constant downward trend since March 2015 and is at its lowest since Ornua (then the Irish Dairy Board) began to track it with a base value of 100 in 2010.
The latest value of the index is equivalent to a farmgate milk price of 24.6c/litre including VAT, but excluding processing costs.
Ornua says that the PPI can provide a reference as to how the general dairy market is performing and may help to guide expectations around likely returns for dairy products and the milk used in their manufacture.
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