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Advantages and limits of

a

price indexing system tying piglet prices

to

those of fattening pigs

Charles BRETTE

Institut National

Agronomique l’avis-Grignon

Centre

d ’ f.:tude

et de Recherche sur

l’!conomie

et

l’Organisation

des Productions _9nimales

(C.E.R.E.O.P.A.)

By indexing piglet prices

on those of

fattening pigs,

the

magnitude

of

cyclic

variations of

piglet prices

can be

substantially

reduced.

Although

the

application

of a constant coefficient which should not fall below 109per cent as

compared

to the reference

period

of

1972 - 7 6,

reduces

the variation gap of

piglet prices considerably,

the method of a fixed

indexing

is rather

rigid.

Other

indexing

methods can reduce

simultaneously

the variation gap of

piglet prices

and

that of the difference between the

selling price

of

fattening pigs

and the

purchase price

of

piglets.

Consequently,

these methods would lead to a fair income distribution between

pig

rearers and

feeders. In any case, it seems advisable to base the

piglet price

on the

selling price

of

fattening pigs

rather than on current

prices

of

fattening pigs

at the moment of

piglet purchase.

Economical and financial analysis of

a

sample of firms from the pork butchery and curing industry

A. VIGNE

I.T.P.,

Service

Économie,

34, bd de la

Gave,

3i5oo Toitloiise

(France)

A group of twelve firms among the most

important

ones of the

pork butchery

and

curing industry

and

representing

about 40 per cent of the gross turnover was studied on the basis of

accountancy

data obtained over a

period

of 3 years

running

from 1972 till rg!4.

As

compared

with the

trading

results of the

whole agricultural

and food

industry,

the

pork butchery

and

curing industry,

with a medium rate of added value, has to pay for a

substantially higher proportion

of man-power which set limits to the

possibilities

of investment and to the creation of reserves.

Another fact to be

emphasized

is the

great

sensitiveness of

trading

results towards the overall economic situation. The main raw

material,

the

pig (about

70

%

of the

turnover)

is

subjected

to very

high

fluctuations of

prices,

which

might

reach 20per cent and more from one year to another, whereas the

selling prices

fluctuate in a much slower

way.

°

The

lowering

in the ratios of the overall economic

yield

and of the financial

independence during

the

period

studied

clearly

shows that the

pig cycle might

also

seriously

affect the

output

of the

pig

channel.

Accepte pour publication

en

jvcina

r977.

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