Vion changes its mind and corrects pig price

With retroactive effect, Vion has increased this week's pig price by €0,04 to €2 per kilo. With this, the country's largest pig slaughterer is forced to follow the movement in the market, although the meat market is said to be persistently weak.

Vion's correction deserves some explanation: the meat company announced an unchanged call price of €1,96 per kilo (including VAT) on Monday. That price made me think. The fact is that the quotation was still at € 1,93 per kilo a week before. However, Vion did not want to speak of an increase, but said that the change concerns an exchange of surcharges. A remarkable way of communicating, because in other years exchanged surcharges were announced as an increase.

Now, three days later, Vion announces that the pork price for this week will be retroactively increased to €2 per kilo, noting that meat sales remain weak. With this they make a striking and unusual move. With the movement, the market leader follows the price movement that Compaxo, Van Rooi, Westfort and Pali made yesterday. The fact that Vion corrects with retroactive effect confirms the unexpectedly tight pig supply in the Netherlands.

Wouter Job

Wouter Baan is Head of Meat & Dairy at BoerenbusinessAt DCA Market Intelligence, he focuses on dairy, pork, and meat markets. He also monitors (business) developments within agribusiness and interviews CEOs and policymakers.

w.baan@boerenbusiness. Nl

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