Evaluation DCA quotes
Pig trade benefits from reference price
The DCA BestPigletPrice (BPP) has been fulfilling a function on the piglet market for about 2,5 years and the listing is doing so well. The DCA Scholarship 2.0 also remains indispensable. These were the conclusions during the DCA Knowledge Session that was held in Arnhem (Gelderland) on Monday evening, March 26.
The aim of the BPP is to manage quality, supply and demand. Jan Schuttert, chairman of the advisory committee, says that the 'cyclical production' works better and better. According to Schuttert, the supply of piglets this spring is not so limited in itself. "The reason for the shortage is the good demand, which in terms of exports is mainly by Spain is driven."
Schuttert also informed us that the advice target amount (for the fixed costs) from 1 July 2018 will be increased by €0,10 to €2,10 per piglet.
BPP above German piglet price
From the end of January, the BPP increased by €11,50 to €49,50 per piglet. With that, the listing recently above the German piglet price (WeserEms), which trades at €48 per piglet. According to market master and coordinator Pieter Post, this is a historic moment. This also did not happen at the time of the Beursprijs for piglets, the predecessor of the BPP.
The audience had virtually no comments on Monday evening about the establishment of the listing. Attendees said that 9 times out of 10 the BPP is correct. The discussions that exist are usually about a rounding difference or the surcharges.
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Recently the BPP has been trading above the German piglet price; historically a unique situation.
DCA Scholarship Price As Reference
De DCA Scholarship Price 2.0 In 2018 it mainly functions as a reference price for the slaughterhouse quotations. Post says that a reference price will probably only become more important in the future. This with a view to when the pig prices in concepts will be fixed for a longer period of time.
Without a reference price, a pig farmer can never make balance, to see whether the fixed pig price has been in line with the market. Taking the DCA Scholarship Award off the air is therefore not desirable, according to those present in Arnhem. The Beurprijs is also seen as a 'good counterpart' for the various slaughterhouse quotations.
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Wouter Job
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