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The Vall Companys agri-food group has decided to innovate livestock integration contracts by introducing a bonus for its productive nuclei of sow farms. This unprecedented innovation aims to reinforce the existing trusting relationship between the integrated farmers and the livestock group, taking it to a higher level of mutual commitment.
The new contract will take into account that—from now on, in years with a positive outcome—the integrating company will share part of its profits with the earliest stage of its value chain, the sow farm production units. This variable remuneration contract could mean an increase of up to 20% in income for the integrated farmer.
The new bonus system will use the live margin established by SIP Consultors as a reference. Based on this margin, a scale will be set to convert the cents/kg determined by the consultancy into euros/piglet, which the integrator will pay to the integrated farmer. This contractual innovation has several objectives: to strengthen trust between both parties over time and to provide greater stability to the production unit by increasing liquidity.
More attractive business in rural Spain
This liquidity seeks to make livestock farming a more attractive and competitive business; such as reinvesting and adapting the facilities to the present 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 story
The integration model has been successful over the years in Spain, allowing the livestock-meat sector and its value chain to become a global benchmark. With this new integration contract, Grupo Vall Companys aims to adapt the contractual relationship to the present and future situation, ensuring that livestock integration remains a successful model in the coming years.
March 20, 2025 - Grupo Vall Companys
