The August Ornua purchase price index (PPI) result released on Wednesday shows an equivalent August milk price of 59.2c/l excluding VAT, when adjusted for processing costs and value payments.

August prices

The July milk league published this week averages 54c/l excluding VAT at base solids. Co-op boards will meet in the next two weeks to set August farmgate milk prices.

Of late, the New Zealand Global Dairy Trade index has been falling, but European dairy commodity prices have held up and strengthened in some cases, as drought affects milk supply across Europe and Ireland.