The Ornua PPI for February has been set at 85.4, down only marginally since January when it was at 85.7.

A PPI of 85.4 equates to farmgate price of 24.1c/l including VAT based on usual Ornua calculations.

Co-ops will start setting milk price for February in the coming days.

Meanwhile, a strengthening oil price has given hope of a recovery in dairy markets.

The price of Brent crude oil climbed above the $40/barrel mark this week for the first time since December.

Major importers

Countries such Algeria, Libya, Nigeria, Iraq, Saudi Arabia and the United Arab Emirates are all major dairy importers and the dwindling oil price has made them less active in the market.