Vion takes the guarantee price from the stable after one and a half years

Vion intends to settle pigs from the Good Farming Balance concept again as of 1 January 2022 according to its own price index guarantee system (PIG). The system was shut down during the nascent corona pandemic in 2020 due to market volatility. Loyal suppliers also receive a fairly generous supplementary payment.

The payment system is part of the Good Farming Balance chain concept. The payout prices for pig farmers are based on a number of international quotations from Germany, Denmark, Spain and Belgium. The system offers farmers the guarantee that Vion will pay an internationally competitive price. However, due to the instability in the quotations since last year, a good representative quotation could no longer be determined. 

Although there is still an imbalance in the national and international meat markets, according to the pig slaughterer, the company has come up with a new set-up.

'Basket' odds
The basket of quotes on which the index is based is adjusted. The international character in this will be reduced to 70%. This probably relates to the outbreaks of African swine fever which leads to greater disparities in the European meat market.

Of the remaining 30%, 20% comes from three other slaughterhouse quotations, while a sales-related component is also added. This concerns the DG Agri PIG carcass quotation, a public quotation of the carcass prices of the EU 27 countries. John de Jonge, COO Vion Pork said: “With this revision of the PIG system, I am confident that we are providing our suppliers with the assurance that they will be paid a competitive price.”

Suppliers within Good Farming Balance who have remained loyal to Vion during the suspension of the guaranteed price will receive a loyalty bonus of €0,4 cents per kilo (including VAT). 

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