This is the tenth month in a row that the PPI index has fallen. In December 2015 the price stood at 86.6. In January this fell to 85.7. The index is calculated from the price of dairy commodities sold by Ornua (formerly the Irish Dairy Board), including butter, cheese, whole milk powder and protein products.

The latest value of the index is equivalent to a farmgate milk price of 24.2c/l including VAT, but excluding processing costs.

The drop follows the third consecutive fall in the Global Dairy Trade index (GDT) since the beginning of 2016. Last week the index fell by more than 7%, meaning the index is now at its lowest point since September 2015.

January milk price

Irish dairy processors are due to set January milk prices for suppliers in the coming days. December saw the majority of the processors hold milk price.

Related stories

Ornua to pay €15m bonus to Irish dairy processors