The Ornua PPI (Purchase Price Index) has risen for the month of April, once again driven by stronger butter and powder returns, the Irish dairy exporter has confirmed.

In a brief statement to Agriland this morning (Thursday, May 6), about the Ornua PPI, a spokesperson for Ornua said:

"The Ornua Purchase Price Index for the month of April 115.1 and is up from 112.6 in the previous month."

This converts to 34.2c/L, including VAT, based on Ornua’s product purchase mix, an assumed member processing cost of 7c/L and excluding member margin.

This is up 0.9c/L on the 33.3c/L announced last month.

The increase is again driven by stronger butter and powder returns, the spokesperson said, adding:

"In addition, the Ornua Value Payment payable to members in the month is €6.76 million, which equated to 5.9% of gross purchases in the month (year to date 6.2%)."

Last month, Ornua published its operating and financial results for the 12 months ending December 26, 2020, with group turnover reaching €2.3 billion.

Exporting into 110 countries, Ornua owns the €1 billion Kerrygold brand – which experienced 13% volume growth in 2020, selling over 10 million packets of butter and cheese a week.

According to the dairy exporter, group earnings before interest taxation, depreciation and amortisation (EBITDA) grew by 49.6% to €107.4 million.