The Ornua Purchase Price Index (PPI) for the month of March 2024 is 132.3, up from the previous month at 131.5.

Ornua’s estimate of member co-op processing costs was 8.95c/l, excluding VAT, in March.

After deducting estimated processing costs, Ornua’s PPI implies an indicative return of 35.8c/l, excluding VAT, for milk of 3.6% fat and 3.3% protein.

The result, Ornua said, reflects improved market returns through the month of March.

In addition to the above, the Ornua Value Payment payable to member co-ops in the month is €3.6m, which equated to 3.3% of gross purchases in the month.

Ornua said that estimated processing costs are based on its estimate of the average cost of processing the Ornua basket of products, which is not representative of any individual member co-op processor.

Exclude allowance

They also exclude any allowance for member co-op processor margin.

An updated methodology (being used since February 2024) uses Ornua’s initial estimate of member co-op processing costs from 2020 as a base and indexes the variable elements to external indices which will be updated quarterly in arrears.

Finally, Ornua said that estimated processing costs will rise and fall quarterly in line with the movements in the variable costs (most notably energy) as per the external indices.