The Ornua monthly Purchase Price Index (PPI) for the month of June is 130.1, up from May’s price of 129.8.

Ornua’s PPI implies an indicative return of 35.11c/l, excluding VAT, up from last month’s price of 35.02c/l.

The estimated member co-op processing costs were 9.5c/l in June, according to Ornua.

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These processing costs are based on Ornua’s estimate of the average cost of processing the Ornua basket of products, which is not representative of any individual member co-op processor, and exclude any allowance for member co-op processor margin, Ornua has said.

The Ornua value payment is also payable to member co-ops in the month and is worth €10m, equating to 6.6% of gross purchases in the month.

Market returns

The results reflect flat overall market returns for the month of June and will rise and fall quarterly in line with the movements in the variable costs as per the external indices, the company added.

This announcement comes on the back of Tuesday’s Global Dairy Trade (GDT) auction, which saw dairy prices drop for the third consecutive auction, to an average of €3,323/t – a decrease of 4.9%.

Whole milk powder has decreased in value by 4.4%, trading at an average price of €3,000/t.

Skim milk powder saw a decrease in value of 7% to an average of €2,746 per tonne.

Butter and cheese

Anhydrous milk fat is down 3.9% to an average price of €5,555/t.

Butter and cheddar cheese are both down, with butter taking a 5% hit to an average price of €4,674/t and cheddar back 12.3% to a value of €3,416.