How does a piglet listing function best?

A Limburg pig trader believes that piglet quotations should move more in line with the market situation. The system behind it, for example the DCA BestPigletPrice (BPP), is set up in such a way that the allowances are never redeemed. This distinguishes the BPP from other listings.

On the other hand, the allowances must be more flexible during the year. This means that the relationship between breeder and fattening pig farmer remains the same. It cannot be the case that a propagator receives, for example, an extra 2% allowance every year, which means that the allowances have grown completely skewed over 5 years.  

Fattening pig farmers suffer the consequences
A strong demand market in the spring cannot always be fully accommodated in the basic price. Conversely, during the summer months, this principle applies equally. That is why this trader calls for DCA, the BPP coordinator, to clearly explain the thinking behind the listing. This concerns the basic price and changes in the percentage surcharge, in light of the non-exchange of the coupling surcharge.

A different mindset will be necessary for propagators in particular, because they are generally used to the fact that the allowances can increase slightly in the spring, only to remain unchanged in the current year. According to the trader, this is not fair to the fattening pig farmers.

If everyone continues to rigidly adhere to the spring surcharge, this will ultimately be at the expense of the basic price and a weak quotation will arise with increasingly higher surcharges. That doesn't benefit anyone. Moreover, a market with a more flexible allowance only functions if this principle is widely supported. The BPP is future-proof with a tight quotation, where allowances can vary but do not have to be exchanged. It is up to the trade to ensure a level playing field between breeder and fattening pig farmer. 

Tight base price
Another southern trader believes that the basic price should be so strict that proliferation of surcharges is prevented. If the BPP had been tighter this spring, the allowances would probably have been less out of line. Now there is a chance that fellow traders will try to reduce the base price to compensate for the surcharges incurred. According to the trader, that cannot be the intention.

The maximum surcharge of 18% on the BPP must also be the maximum. The extreme demand weeks must be absorbed in the basic quotation. This prevents fattening pig farmers from being punished all year round. According to the trader, a flawless reflection of the market is not feasible every week when quoting a piglet. This is because there are unpredictable weeks every year. For both propagators and fattening pig farmers, it ultimately concerns the average price over a year.