ISN Updates Way of Calculation for European Pig Price Comparison
ISN Updates Way of Calculation for European Pig Price Comparison
Shifting for Example Results from New Calculation Basis for Muscle Meat Share or Mask Adaption
To come to fair competition, market transparency is required not only on the German pig market but – due to increasing internationalisation of the whole industry – on the European market as well. For this reason, the ISN Interessengemeinschaft der Schweinehalter Deutschlands e. V. has been comparing various EU member countries’ pig prices on a weekly basis ever since 2004. To compare unadjusted quotations is not a sensible thing to do, because determining the quotations for pigs mature for slaughter is done on a different basis in each country. An answer can hardly or only in a limited way be given to the question in which country the pig feeders currently achieve the highest price, by taking those quotations as a basis.
Differences in determining the quotations are found in: muscle meat share (which is taken as the basis for the calculation), exploitation rate, muscle meat measuring, payment of bonuses, etc. In Denmark, for instance, the basic price is reckoned for 61 % muscle meat share. In Poland, however, only 52 % muscle meat share are taken as a calculation basis.
The quotations in Italy and Spain are determined on a live-weight basis, while all other countries account for slaughter weights.
Therefore, the ISN apply the following reference values as a calculation basis for corrections related to the European pig price comparison: 79 % exploitation, 56 % muscle meat share, net and farm gate.
In recent times, the basics changed for quotations in some countries. So for instance, in the neighbouring countries Austria, Czech Republic and the Netherlands, the calculation masks were adapted to a 56 % muscle meat share value, which is usually taken as a basis in Germany.
As a result of those changes, the ISN have their calculation formula related to the European pig price comparison adjusted as from August 1st with regard to the countries concerned. As a result of this, countries which corrected their masks upwards regarding the muscle meat share will forfeit in comparison with the German corrected quotation. Through the increasing of the muscle meat percentage, Ireland and Austria will have to accept the most considerable decreases in the corrected quotation. Denmark and Belgium, however, will gain a few cents because bonus payments were increased there.
The ISN’s European pig price comparison is being published in the ISN market report every Monday and on www.schweine.net every Tuesday.
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