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Trade benefits from tight DCA BestPigletPrice
The situation on the piglet market has turned more than 6 degrees in 180 months. Last autumn, piglets could hardly be sold, while this spring there is little or no supply. To prevent a proliferation in the surcharges, the trade advocates a tight DCA BestPigletPrice (BPP).
During the public meeting, which was held on Wednesday 16 April during Dutch Pork Expo, Jan Schuttert, the chairman of the advisory committee of the DCA BestPigletPrice, concluded that the demand for piglets has increased significantly in recent months. Last fall, the BPP recorded another depth record of €24 per piglet, but the quotation has more than doubled since then and is now at €56 per piglet.
Schuttert's impression is that the DCA has quoted BestPigletPrice in line with the market over the past few months. Most of those present in the room agreed.
Surcharges continue to be discussed
Despite the tight basic price, the conclusion is that increasing surcharges are almost unavoidable. A fattening pig farmer in the room said that increasing supplements are almost impossible to stop in practice, because he is forced to choose between an empty barn or pay a higher supplement.
It is the responsibility of the multiplier, fattening pig farmer and trader to agree on a higher supplement, Schuttert reports. Pieter Post, the market manager at DCA, says he does not take any accrued surcharges into account when compiling the quotation. This is because otherwise the 'tight note' principle will no longer be valid. The exchange of allowances is therefore not an issue, as was decided during the previous meeting in Arnhem.
System adjustments
Schuttert also pointed out a number of (possible) changes in the structure of the BPP. One of the changes is that input from the 11-member advisory committee counts double from 1 May. DCA has come to this decision in order to avoid the listing being slowed down in a rising market and being squeezed too much by certain traders in a down market. Post says past experience has taught us to follow this advice.
Another change proposed by the advisory committee is to increase the weight allowance between 25 and 30 kilos by €0,20 to €1 per piglet. In practice, Schuttert points out that the piglets are delivered increasingly heavier, because this is more convenient within the 'Beter Leven' quality mark. Since opinions in the market differ on this topic, DCA is still considering this adjustment.
In addition, DCA is investigating to publish a target price for piglets, in addition to the BPP, in which a link has been made with the fattening pig and feed price. The public meeting will take place again next year during the Dutch Pork Expo in Venray.
Wouter Job
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