The DAPP will in future be made up of a much larger sample of pigs.
And BPEX is to look at pricing mechanisms in other countries, to see if a better system than "shouts" can be found.
This new activity on pricing formulas follows widespread discontent among producers over the current shout price system.
Processors have been equally unhappy with the DAPP. They claim it is "self-feeding", which is why they had to introduce shout prices.
The new DAPP will now include price data from processing giant Tulip, which famously has boycotted it in recent years.
Feeding in prices for the first time will be H. G. Blake, Cheale Meats and G. Wood and Son.
Cranswick Country Foods, F.A. Gill, Vion and Woodhead Bros will continue to provide data for the DAPP.
BPEX's aim is to "rebalance" the DAPP in a way that makes it more responsive to market conditions.
BPEX has always argued that DAPP is designed to be a price reporting mechanism rather than a pig pricing mechanism.
Nevertheless BPEX board members recognise that shout prices are extremely unpopular with producers and improving the DAPP may pave the way to finding an alternative to shout prices.
BPEX will now look at pricing mechanisms in other countries to see if any lessons can be learned in Britain.
The goal is to have a pricing mechanism that is sufficiently responsive to market conditions to satisfy processors, whilst being fair enough and transparent enough to be acceptable to pig producers.
The eight processors now feeding into the DAPP are providing data from 15 sites.
Meat Trade News Daily Supporting British Pig Farmers
Source: bpex.org
Back to News Headlines