The Ornua Purchase Price Index (PPI) for July is 153.6, down from 154.7 the previous month.
Ornua’s estimate of member co-ops processing costs for July is 9.3c/l, down from 9.6c/l the previous month.
After deducting estimated processing costs, Ornua’s PPI implies an indicative return of 43.29c/l, excluding VAT, for milk of 3.6% butterfat and 3.3% protein.
This figure is net of Ornua costs to market and also unchanged from June.
Ornua said this reflects somewhat weaker market returns for the month of July, offset by lower estimated processing costs.
In addition to the above, the Ornua value payment to member co-ops for the month of July is €8.2m, which equated to 3.8% of gross purchases in the month.
Releasing July’s PPI, Ornua noted that the PPI relates to product settlements/payments for July and for reasons of seasonality is not directly aligned with milk production and payment.
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