So the Ornua index this week suggests there is more room for Irish price increases at farmgate level.

The market as we have been describing here for the last number of months is rising for all commodities, with the exception of cheese.

The processors argue that the index doesn’t reflect the cost increases, the fact they have to make a margin or the fact that some of the Ornua pot includes some milk that hasn’t originated in Ireland but returns a bottomline to the Ornua business.

The fact remains the difference between the Ornua index and the milk price paid has been substantial all year.

Something needs to change to bring further transparency to the comparison, but we can only detail the facts as they are.

As explained in detail last week, butter on EU dairy commodity charts is 50% ahead of the same time last year in terms of price.

This time last year it was heading for €3,500/t and now its heading for €5,250/t. The move is significant and why milk prices at farm level are 5c to 6c/l ahead of the same time last year. Skim milk powder is 41% ahead.

Next week, we will have another GDT auction in New Zealand and the expectation is you will see an increase again, even though milk supply over there is in full flow.

Prices for the main dairy commodities are now all trading at between 30% and 50% ahead of where they were this time last year.

The outlier is cheddar cheese trading 7% to 10% ahead.