Vall Companys Group launches a new integration contract
The Vall Companys agri-food group has decided to innovate its livestock integration contracts by introducing a bonus for its production units on sow farms. This unprecedented development aims to strengthen the relationship of trust that already exists between the integrated partners and the livestock group, taking the relationship to a higher level of mutual commitment than previously existed.
The new contract will consider that—from now on, in years with a positive result—the integrating company will share part of its profits with the earliest part of its value chain. This contract, with variable remuneration, can mean an increase of up to 20% in income for the integrated farmer.
The new reward system will be based on the live margin established by SIP Consultors. Based on this margin, a scale will be established that translates the cents per kilo set by the consultant into euros per piglet, which the integrator will pay to the integrated farmer. This contractual innovation has several objectives: to consolidate trust between the two parties over time and to generate greater stability for the production core by providing greater liquidity.
Most attractive business in rural Spain
This liquidity seeks to make livestock farming a more attractive and competitive business; by reinvesting and adapting facilities to the current and future challenges of the sector, facilitating the recruitment of talent, and generating added value in terms of profitability for the integrated livestock company.
The integration model: a success
The integration model has been a success over the years in Spain. It has allowed the sector and the livestock-meat value chain to become a global benchmark. With this new integration contract, the Vall Companys Group seeks to adapt the contractual relationship to the current and future situation with the goal of ensuring livestock integration continues to be a successful model in the coming years.
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