Bpex abandons DAPP following controversial drop-outs

Following a significant decline in participating processors in the Deadweight Average Pig Price (DAPP), the Bpex board has decided to launch a new historical pig price report, called the GB All Pigs Price (GB APP).

After a meeting on 12 March, Bpex agreed to a move from the DAPP to a GB APP, with a six-month transition period. The new price survey will have the same sample specification as the DAPP, but data will be collected from sellers rather than buyers.

James Pownall, head of data and analysis for market intelligence at AHDB, said: “It has been decided that the previous way cannot be continued indefinitely, as a number of processors don’t want to come back into the DAPP. The new system will use data from sellers only – for example marketing groups and producers. There will be a cross-over time when we are going to have dual systems to allow people to adapt.”

The announcement follows the controversial exits of Cranswick and Karro from the DAPP earlier this year. They proved to be the last straw for the old survey, with Cranswick’s exit causing a 30% drop in the overall sample size.     

National Pig Association chairman Richard Longthorp told MTJ that while there will be some initial confusion during the transition, the introduction of GB APP is a positive move.

He said: “It’s quite clear we cannot have a situation like we had in the DAPP before the processors dropped out, but you have to compromise. We have spent a long time debating it and, in the long term, I think it will be a good thing – it will give us a robust system”

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. AHDB Market Intelligence will publish the first GB APP on 16 April for pigs killed in the week commencing 31 March. Bpex and AHDB hope to gradually increase the sample size, which will start at around the same as the current DAPP.

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.”  

The new system will be based on individual pig data, including the gross price and the weekly paid bonus payments, but not retrospective bonus payments, which are dependent on achieving contract criteria.

Bpex is also hoping to introduce an additional price series – a standard pig price based around UK abattoir data.

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