Relationship with suppliers
Our policy
Vion’s policy regarding the management of supplier relationships pays special attention to suppliers of live animals. These relationships are crucial for the continuity of Vion’s own operations. The aim is to build long-term, mutually beneficial collaborations, with fair payment and transparent communication at the core.
Fair and predictable payments
Vion applies payment practices that give farmers security, such as timely payments and clear agreements with financial institutions. Fair pricing is essential: prices are determined based on performance, quality, delivery time, and market conditions, so that suppliers can cover their costs and achieve a reasonable return.
Stability in volatile markets
Since livestock prices—especially pigs—can fluctuate significantly, Vion is committed to more predictability and stability in the supply chain. This helps all parties involved manage risks more effectively. Vion views fair pricing not only as a business necessity, but also as a contribution to the proper functioning of food markets and broader sustainability goals. Farmers are indispensable partners in this process, and their well-being is a priority.
However, increasing environmental requirements pose a risk: if farmers exit the sector because of this pressure, it could threaten supply security and price stability. That is why Vion sees favorable payment policies as an opportunity to build trust and loyalty. Vion is working on improved pricing and contract models that contribute to a fair distribution of value in the chain.
Our pork programs that deliver: Good Farming Balance and PIG
One example is the Good Farming Balance concept, which encourages farmers to deliver high-quality products for international markets. Within this concept, suppliers can choose from different delivery modules and pricing models, including the weekly Vion price (which fluctuates with supply and demand) and the Price Index Guarantee(PIG) system. The latter provides more price stability because it is based on an average of representative national and international price quotations.
Since 2023, the PIG system has been further improved to better align with demand-driven supply chains. It now also includes a sustainability component, rewarding farmers for investments in CO₂ reduction on their farms. In this way, Vion contributes to both economic and ecological sustainability in the food chain.
Our policy
Vion’s policy regarding the management of supplier relationships pays special attention to suppliers of live animals. These relationships are crucial for the continuity of Vion’s own operations. The aim is to build long-term, mutually beneficial collaborations, with fair payment and transparent communication at the core.
Fair and predictable payments
Vion applies payment practices that give farmers security, such as timely payments and clear agreements with financial institutions. Fair pricing is essential: prices are determined based on performance, quality, delivery time, and market conditions, so that suppliers can cover their costs and achieve a reasonable return.
Stability in volatile markets
Since livestock prices—especially pigs—can fluctuate significantly, Vion is committed to more predictability and stability in the supply chain. This helps all parties involved manage risks more effectively. Vion views fair pricing not only as a business necessity, but also as a contribution to the proper functioning of food markets and broader sustainability goals. Farmers are indispensable partners in this process, and their well-being is a priority.
However, increasing environmental requirements pose a risk: if farmers exit the sector because of this pressure, it could threaten supply security and price stability. That is why Vion sees favorable payment policies as an opportunity to build trust and loyalty. Vion is working on improved pricing and contract models that contribute to a fair distribution of value in the chain.
Our pork programs that deliver: Good Farming Balance and PIG
One example is the Good Farming Balance concept, which encourages farmers to deliver high-quality products for international markets. Within this concept, suppliers can choose from different delivery modules and pricing models, including the weekly Vion price (which fluctuates with supply and demand) and the Price Index Guarantee(PIG) system. The latter provides more price stability because it is based on an average of representative national and international price quotations.
Since 2023, the PIG system has been further improved to better align with demand-driven supply chains. It now also includes a sustainability component, rewarding farmers for investments in CO₂ reduction on their farms. In this way, Vion contributes to both economic and ecological sustainability in the food chain.