The Ornua Monthly Purchase Price Index (PPI) for August is 151.4, down from the previous month at 153.6.

Ornua’s estimate of member co-ops processing costs for August is 9.3c/l, staying the same as July.

After deducting estimated processing costs, Ornua’s PPI implies an indicative return of 42.53c/l, excluding VAT, for milk of 3.6% fat and 3.3% protein. This figure is net of Ornua costs to market and down from 43.29c/l, excluding VAT, when compared with July.

An Ornua spokesperson has said that the PPI results reflect weaker market returns for the month of August.

In addition to the above, the ‘Ornua Value Payment’ payable to Member Co-ops in the month is €7.8m, which equated to 3.9% of gross purchases in the month.

In releasing August's PPI, Ornua noted that the PPI relates to product settlements/payments for the month and for reasons of seasonality is not directly aligned with milk production and payment.