Amid continued weakness in dairy markets, the Ornua purchase price index (PPI) has fallen for the 14th consecutive month. The index has dropped from 81.4 in April to 80.8 in May.

The PPI is a monthly indicator of market returns on dairy products sold by Ornua (formerly the Irish Dairy Board), typically butter, cheese, whole milk powder and protein products, relative to comparable returns generated in a base year (2010).

An index level of 80.8 in May 2016 means the market has generated a return 19.2% below the average for the base year. A PPI of 80.8 equates to a farmgate price of around 22c/litre.

So far this month no co-ops have set a milk price for April. However, last Wednesday's Global Dairy Trade auction saw the second consecutive rise in the price of commodities traded on the New Zealand-based platform.

The index of dairy commodity prices rose by 3.4%, with all products showing a lift except whole milk powder (WMP) and rennet casein.

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