PPI dairy price index drops
The index, which reflects the value of dairy products exported by Ornua, stood at 111.3 last month. This is a 3.2% drop compared with November. The index is now back at the level observed last August, after peaking in October.
The PPI value reflects the recent drop in butter prices, which have recently stabilised around €4,000/t after peaking near €7,000/t in the autumn.
Dairygold chief executive Jim Woulfe said this week that market returns were currently 8c/l behind the milk price and processors would struggle to keep farmgate prices above 30c/l in 2018 in the current context.
Co-ops are due to start setting December milk prices at the end of this week.