The Ornua Purchase Price Index (PPI) is a monthly indicator of market returns on dairy products purchased by Ornua (typically butter, cheese, whole milk powder and protein products), relative to comparable returns generated in a base year (2010).
For example, if the PPI is 105 in month ‘X’, this implies that the market has generated a return 5% higher than the average return in the base year (2010). Similarly, an index level of 95 in month ‘Y’ implies a return 5% below the average for the base year.
The following graph shows how the PPI has varied since 2010 and it is updated monthly. Hover over points to view the PPI value for a specific month and to see how global factors may have influenced the value of the PPI for that particular month.
*Please note that the PPI for January was revised from 111.3 to 111.8 and the PPI for February was revised from 105 to 105.4
The PPI can provide a reference as to how the general dairy market is performing, and may help to guide expectations around likely returns for dairy products and the milk used in their manufacture.
Assurance Provided by Deloitte.