The basket of dairy products exported by Ornua saw its price fall for the fifth straight month in March. The PPI now stands at 100.4, just under the level observed in 2015 before quotas were lifted and prices crashed.

This is equivalent to a farmgate price of 28.08c/l excluding VAT and processing costs. The index is published as co-ops prepare to set March milk prices.

Ornua said this reflects lower cheddar and milk powder prices, partly compensated by higher butter returns last month.

European markets, however, have rallied this month, led by butter and cheese, with powder prices also increasing slightly.

Read more

Monday dairy markets: European dairy prices on the rise

Co-ops urged to hold March milk price