GIFT’s(Great Italian Food Trade) complaint is forcing CUN pigs-the commission that sets the single national price for slaughter pigs each week-to take corrective action.
On 13.2.21 we reported how CUN pigs have for years used only incomplete and often false data provided by slaughterhouses. Without verifying its (in)accuracy, as is proper, by comparison with available public data.
Altering demand data, again by default, caused pig prices to fall, to the detriment of farmers and undue benefit to slaughterhouses. It was enough for our article to stimulate a repentance. But the price is still not right and justice must be done. #CleanSpades.
Report, the weekly fake
The Report published every Wednesday by the Italian Telematic Commodity Exchange (BMTI, a public company established by MiPAAF in 2006) is expected to give the Single National Commission an accurate picture of market trends, on a weekly basis. Based on this Report, every Thursday CUN pigs sets the national single price for slaughter pigs. But the trend of demand (animals slaughtered) and supply (animals sold to slaughterhouses by farmers) has so far been systematically distorted by two expedients:
– data used are those received from only one party to the bargaining, the purchasing slaughterhouses. Without any supply-side feedback (breeders) or any essential verification of objective data (see next section),
– the 19 slaughterhouses that make up the reference sample, on which the estimates are based, often fail to report data in a timely and complete manner. For their undue benefit, ça va sans dir.
Report, the first correction
Gathering exact data on market trends is as necessary as it is simple. Carcass data have been available at MiPAAF for more than 10 years, and the RIFT database has also been available for 1 year. But only following the publication of our survey, (1) for the first time after years of even serious alterations in the market, did the CUN pigs run for cover.
The first correction introduced in the last two Reports was the inclusion of data coming from the RIFT portal, the database on pigs slaughtered for PDO productions. A reliable source, since no pig can be processed before it is registered in the RIFT system.
MiPAAF, unreliable database
The carcass classification database maintained by MiPAAF is the second source of objective data on market trends. All slaughterhouses operating in Italy must enter quantities and characteristics of slaughtered animals, by Tuesday of the following week. With only the exemption of slaughterhouses processing less than 200 carcasses per week, which moreover express an insignificant share.
Despite the premise, the data collected by the ministerial database are unreliable. Examination of the reports published so far on the MiPAAF database shows countless delays and discrepancies. With adjustments to the numbers after the fact, even two weeks later. Just enough not to disturb the price alteration at the weekly CUN meeting. (2)
Of two things, either slaughterhouses systematically violate their obligation to report such data or ministry officials fail to record and publish the data they receive. In both cases, serious offenses, including criminal offenses, may occur (see last paragraph).
Under the dress nothing
The two Reports following the publication of our survey do not bear a trace of the ministerial data. Except, however, to announce them in a title with no sequel. Nothing under the dress.
The approximation of the MiPAAF in a crucial service for the pig industry was, after all, already evident. In addition to black holes (see next paragraph), two exemplary cases are cited:
1) the first week 2021 the ministerial database omitted the number of slaughterhouses that reported carcass classification,
2) Still, 2021 data is published with wrong date, referring to 2020. The Millennium Bug 20 years too late?
CUN, transparency and black holes
Transparency in the pig market, essential to fair remuneration for farmers, postulates the inclusion of correct data. In fact, a simple comparison of the data shows how the ministerial database is a constellation of black holes. It should collect more classifications than the RIFT database, which pertains only to the PDO circuit. But he does not receive them or publish them.
The first weeks of 2021 show the level of approximation of ministerial data. In the third week, failure to collect data on only two slaughterhouses (35 detected out of 37) produces a shortfall of more than 35 thousand carcasses. Other black holes occult up to more than 47,000 carcasses over the next two weeks.
The MiPAAF figure updated 2 weeks late turns out to be fallacious in any case. In week 5 (1-7.2.21):
– the RIFT database reports 166,878 animals slaughtered in the PDO circuit alone,
– the ministerial database, which is supposed to add PDO pigs to non-PDO pigs, instead stops at 166,204. There are 674 PDO pigs missing and who knows how many non-PDO pigs. Who stole them?
Fraudulent lowering of prices
‘Fraudulent raising and lowering of prices in the public market or trading exchanges. Whoever for the purpose of disturbing the domestic market of securities or goods, publishes or otherwise disseminates false, exaggerated or tendentious news or uses other artifices to cause an increase or decrease in the price of goods, or of securities admitted to the stock exchange lists or negotiable in the public market, shall be punished by imprisonment of up to three years and a fine of 516 to 25,822 euros.
If the increase or decrease in the price of goods or valuables occurs, the penalties are increased‘ (Penal Code, Article 501).
Systematic market distortion goes unpunished to this day. Not even the breeders had ever reported it, before AVA (Association Veneta Allevatori) made integral reference to our previous article. (3)
#CleanSpades
The time has come for clarity, once and for all:
– the investigating judiciary must investigate this matter, as well as more generally the tide of malfeasance plaguing the Italian agricultural system (4,5,6,7,8). Without neglecting, again, the responsibility and complicity of managers and ministry officials,
– the Competition and Market Authority (AGCM) can in turn ascertain the market disruption that has lasted for years, sanction those responsible, and verify the suitability of the new procedures to be established.
A public blockchain will then be able to guarantee the immodifiability and incorruptibility of the data recorded in the system. (9)
Dario Dongo and Marta Strinati
Notes
(1) Marta Strinati, Dario Dongo. Pig market, serious anomalies on prices set by CUN. GIFT(Great Italian Food Trade). 13.2.21, https://www.greatitalianfoodtrade.it/mercati/mercato-suinicolo-gravi-anomalie-sui-prezzi-stabiliti-dalla-cun
(2) Only for the past few weeks has the ministerial report carried a ‘screen’ indication that the published data are provisional and are updated the following week
(3) AVA (Association Veneta Allevatori), letter 15.2.21
(4) Dario Dongo. Coldiretti, AIA and the golden calf. #CleanSpades are urgently needed. GIFT (Great Italian Food Trade). 9.2.21, https://www.greatitalianfoodtrade.it/idee/coldiretti-aia-e-il-vitello-d-oro-vanghepulite-urgono
(5) Dario Dongo. CAI SpA, Federconsorzi 2. Federico Vecchioni’s Great Binge and Coldiretti’s magic circle. GIFT (Great Italian Food Trade). 16.2.21, https://www.greatitalianfoodtrade.it/idee/cai-spa-federconsorzi-2-la-grande-abbuffata-di-federico-vecchioni-e-il-cerchio-magico-di-coldiretti
(6) Dario Dongo. Federconsorzi 2, CAI SpA, AgriRevi, Coldiretti. The jerk dinner. GIFT (Great Italian Food Trade). 31.1.21, https://www.greatitalianfoodtrade.it/idee/federconsorzi-2-cai-spa-agrirevi-coldiretti-la-cena-dei-cretini
(7) Dario Dongo. Conflict of interest AGEA – Pagliardini – Coldiretti, questions to the European Parliament. GIFT(Great Italian Food Trade). 30.1.21, https://www.greatitalianfoodtrade.it/idee/conflitto-d-interessi-agea-pagliardini-coldiretti-interrogazioni-al-parlamento-europeo
(8) Dario Dongo. Coldiretti and Unaprol. The uncertain fate of public funds intended for Italian olive growers. GIFT (Great Italian Food Trade). 6.2.21, https://www.greatitalianfoodtrade.it/idee/coldiretti-e-unaprol-il-destino-incerto-di-fondi-pubblici-destinati-agli-olivicoltori-italiani
(9) Dario Dongo, Andrea Adelmo Della Penna. Blockchain, the opportunities for the food and organic supply chain. GIFT(Great Italian Food Trade). 2.11.20, https://www.greatitalianfoodtrade.it/innovazione/blockchain-le-opportunità-per-la-filiera-agroalimentare-e-quella-biologica
Dario Dongo, lawyer and journalist, PhD in international food law, founder of WIISE (FARE - GIFT - Food Times) and Égalité.
Professional journalist since January 1995, he has worked for newspapers (Il Messaggero, Paese Sera, La Stampa) and periodicals (NumeroUno, Il Salvagente). She is the author of journalistic surveys on food, she has published the book "Reading labels to know what we eat".
