Comparison of the final pig producer price in the main production areas of the European Union

The different national quotations and market prices for pigs cannot be compared directly to assess the price paid to pig producers in the main production areas of the E.U.A research has been carried out to calculate the real farm price paid for pigs in the main pig producing countries in the E.U. : France, Netherlands, Belgium, Germany, Denmark and Spain.The information provided by technical-economic management schemes has been put in relation with the national market prices. The elements of the real payment level has been detected. This allows to build a model which calculates, on a comparable basis, the real producers’ prices.So a global correction on representative market price permits continual estimates of the final price paid to pig producers.A comparison of the average annual prices (1995 to 1999) show important differences between the countries concerned : the Dutch producers’ price is structurally below the others ; Denmark and France have similar prices, while Germany and Spain enjoy on average better prices.The pig price is influenced by several factors such as : the market situation, the added value on carcasses and the organization and marketing structure of the industry. On a national view, average prices paid may also differ between different farms.In order to obtain pertinent estimations of prices, it is necessary to continually take into account the evolution of the main factors in the price model.