Following its meeting on March 12, the BPEX Board agreed to launch new historical pig price reports that will replace the DAPP (Deadweight Average Pig Price) after a six-month transition period. The all new GB All Pigs Price (GB APP) will have the same specification as the DAPP but data will be collected from sellers rather than buyers as at present.
There will be a transition period of six months when the DAPP and the GB APP will be published in parallel.
The board decided to make this change following the alterations in the DAPP sample at the start of 2014. There has been a reduction in both the sample throughput and the number of participating processing companies which presents a risk to the future sustainability of the DAPP.
The GB APP will be constructed using the same sample specification as the current DAPP. It will be based on individual pig data that includes the gross price (before deductions) and weekly paid bonus payments.
It will not include retrospective bonus payments that are dependent on achieving contract criteria. Data providers will be audited to ensure the specification is followed.
Due to the change in the data collection process, the GB APP will be reported two weeks after the week in which the pigs are killed.
It is planned that the GB APP will be published for the first time by AHDB Market Intelligence on April 16 for pigs killed in the week commencing March 31. It is also planned to expand the sample of pigs.
The weekly EU Reference Price will continue to be produced and published as at present.
BPEX will also continue to explore the feasibility of an additional price series based on standard pigs only purchased in the United Kingdom.
BPEX Director Mick Sloyan said: "Having good quality market information, including historic price data, is vital for an efficient and competitive pig production and processing industry.
"This enhancement will deliver a robust and sustainable price reporting system. It will also give those in the industry who follow the DAPP a transition period to develop an understanding of the GB APP.
"We will continue to look at additional historic price data that might be of benefit to the industry. I would strongly urge producers and processor not to use historical price reporting as a means to determine future pig prices. The purpose of historical price reporting is to provide all parties with an accurate record of past market events."