25 September 1998

Pig payment time cut

DALEHEAD Foods has reduced the payment time to producers from 18 working days after pigs are slaughtered to five. The scheme will be reviewed in December.

The company has also introduced a new "cost of production" contract, which is based on wheat and soya prices, for producers supplying its plant in Linton, Cambs.

The contract value is calculated on a six-month rolling basis, and is currently worth 91p/kg for a top grade pig, though any price increase is capped at 12p/kg. Producers must sign for a minimum of a year, and must give six months notice. &#42