The Ornua PPI (Purchase Price Index) has risen for the month of May, driven by "generally stronger returns" across the product range, the Irish dairy exporter has confirmed.

In a brief statement to Agriland this morning (Wednesday, June 2), about the Ornua PPI, a spokesperson for Ornua said:

"The Ornua Purchase Price Index for the month of May is 116.8 and is up from 115.1 in the previous month."

This converts to 34.8c/L, including VAT, based on Ornua’s product purchase mix and assumed member processing costs of 7c/L and excluding member margin.

The Ornua representative continued, adding:

"The increase is driven by generally stronger returns across the product range.

"In addition, the Ornua Value Payment payable to members in the month is €7.63 million, which equated to 5.2% of gross purchases in the month (year to date 5.8%)."

Meanwhile, earlier this week the Global Dairy Trade (GDT) index recorded a slight drop to mark four consecutive decreases over the last two months in its latest auction.

The most recent tender – event 285 – concluded yesterday (Tuesday, June 1) with the GDT Price Index down 0.9%.

Lasting one hour and 56 minutes, yesterday’s event saw 165 participating bidders take part across 13 bidding rounds, with 116 winning bidders emerging.

A total of 22,825MT of product was sold on the day.

The most dramatic move on the day was recorded by the butter milk powder (BMP) index which saw a 7.5% slide; butter also recorded a hefty 5.4% drop in index.

The latest index figure of 1,276 is back 11 digits on the last outing of 1,287.