"Coop de France" proposes the creation of a differed market share for the swine industry

The organization of French co-ops, "Coop de France" proposed, last week, to the French Minister of Agriculture, Bruno Le Maire, a series of measures with the objective of minimizing the volatility of prices in the livestock sector.
Tuesday 29 March 2011 (6 years 10 months 22 days ago)
The organization of French co-ops, "Coop de France" proposed, last week, to the French Minister of Agriculture, Bruno Le Maire, a series of measures with the objective of minimizing the volatility of prices in the livestock sector.

The solution would enter into the regulation of contract relations between livestock farmers and feed producers through the creation of long term, voluntary feed supply contracts. With these contracts a recorded livestock farmer will be able to know what the price of his feed will be. At the same time, the farmer, and specifically those on swine farms, should also be able to know what price his animals will sell for and therefore, assure cost margins. The only way of knowing what price animals will sell for is through differed delivery (an actual market where prices have been set for a certain date of delivery, which should not be confused with a regulated futures market with standardized contracts and clearing houses). The buyers and sellers agree on a price for delivery on a future date based on the expectations of their market. In the case of pork, Coop de France is calling for the creation of, parallel to the current cash market, a differed delivery contract to guarantee the visibility of prices for at least one production cycle.


The market in Plérin (Côtes d'Armor), which controls the price of pork in France, has agreed to study this option, which could soon give way to the introduction of estimates for differed deliveries.

http://www.coopdefrance.coop/fr/index.html

Swine news

Article Comments

This area is not intended to be a place to consult authors about their articles, but rather a place for open discussion among pig333.com users.

Access restricted to 333 users. In order to post a comment you must be logged in.

Not a registered user of 333?sign upand access swine prices, the search engine, ...
It is fast and free
Are you registered in 333?LOGINIf you've forgotten your password we'll send it to you here

tags

Swine News

Swine industry news in your email

You are not subscribed to this list

16-Feb-201809-Feb-201802-Feb-201826-Jan-2018

Log in and sign up on the list

Not a registered user of 333?sign upand access swine prices, the search engine, ...
It is fast and free
Are you registered in 333?LOGINIf you've forgotten your password we'll send it to you here