News pigs
Tönnies focuses on heavy pigs, but lean meat
The large German slaughterhouse Tönnies will adjust its payment system as of July 1. Due to weak exports to Asian countries, the company is focusing on less fatty meat. Vion has previously adjusted its payment system, although there is a clear difference in the approach. While Vion focuses on lower slaughter weights, Tönnies focuses the system on heavier, but leaner pigs.
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With the introduction of the new system, Tönnies' standard slaughter price will be determined for pigs with a meat percentage of 60%. Previously that percentage was 59%. If the meat percentage falls below 60%, the payment is reduced by 1 cent per kilo. If the meat percentage is below 59%, the price drops by 3 cents. If the percentage is lower than 57%, the slaughter price drops by as much as 4 cents. The slaughterhouse also gives a bonus for slightly leaner meat. If the meat percentage is between 60% and 62%, the German slaughterhouse pays a bonus of 1 cent per kilo.
On the other hand, the upper limit of slaughter weights is increasing. Previously, pigs could weigh a maximum of 105 kilos for optimal payout. That upper limit has now been extended to 107 kilos. If a pig farmer falls below this limit, the slaughterhouse deducts 3 cents from the payment. The lower limit of the slaughter weight is 86 kilos. If the weight of a pig falls below this, the payment decreases by 4 cents per kilo. The company is trying to accommodate its pig farmers with the better price at higher slaughter weights. Given the high piglet prices, it is more profitable for fattening pig farmers to slaughter pigs at a higher weight.
Vion took the lead
The adjustments to both companies' payment systems are the result of the weaker one export to Asian countries. In recent years, slaughterhouses have focused on fattier meat in their payment systems. This fits in with the tastes of consumers in countries such as China and South Korea, making it easier to export meat. Now that exports on the Asian market are disappointing, slaughterhouses are again focusing on leaner meat to best meet the tastes of Northern European consumers.
Vion previously decided purchasing tables to adjust. However, the Brabant slaughterhouse opted for a different approach. Vion not only focuses on a higher percentage of lean meat, but also on lighter pigs.