Good Farming Balance

High-quality meat tailored to international markets

The international market for pork is growing and developing strongly, and Vion has obtained veterinary certificates that provide access to almost all countries across the globe. Different countries and customers request different parts of the pig, and customer requirements are becoming increasingly specific. At the same time, many customers also wish to enter into long-term pricing agreements.

In 2017, Vion introduced Good Farming Balance. This demand-driven supply chain concept allows us to respond to specific demand from international markets. Together with our pig farmers, we ensure that we are able to produce exactly the products demanded by customers in the desired specifications. This requires targeted co-ordination.

Good Farming Balance uses three supply modules to ensure sufficient diversity of the pigs supplied: Basic, Wide (a wide supply process) and Robust (more mature pigs with a thicker layer of fat). Pig farmers can decide for themselves which supply module they wish to use to supply their pigs. At the same time, we enter into agreements on the quantities to be delivered in order to guarantee continuity. This ensures that high-quality meat is always available to our customers, in the desired amounts and according to client specifications.

Pig farmers can choose from three pricing systems within Good Farming Balance: the Vion weekly price, which is based on supply and demand and varies weekly; the Vion price index guarantee (PIG), an average price based on a combination of representative international prices; and the Vion long-term price (LTP), whereby the price of the pork is fixed for a longer period (at least 13 weeks). A combination of LTP with one of the first two pricing systems is also possible.

 

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