Fall in slaughter numbers offers opportunity to improve contracts

摘要

Producers may have a good opportunity to renegotiate their slaughter pig contracts in the likelihood of a 4% drop in UK pig slaughter numbers during the second half of this year. The shout price system, whereby producers are contracted to sell pigs against a weekly announced price, remains unpopular without a deadweight average pig price (DAPP) link. Some of the main pig processors use the shout price system for a larger proportion of their requirements than others, where the DAPP link remains a more popular alternative.