The weekly pork carcass price is brought to you by the South African Pork Producer’s Organisation (SAPPO).
Domestic pork carcass prices are weighted averaged abattoir purchase prices per category and/or class.
Purchase prices are the chilled carcass mass, including the fifth quarter as paid to feedlots or farmers. The carcass purchase price excludes value-added tax (VAT), transportation and commission.
Weighted average abattoir purchase price takes the number (units) and average weights of the animals into consideration.
Nominal carcass prices = Abattoir Purchasing Prices that is not adjusted for inflation.
Consumer price index (CPI) indicate the percentage change in prices levels compared to a base year (i.e. Dec 2016=100) i.e. inflation
Real carcass price = Nominal carcass price / consumer price index.
Profitability price to yellow maize ratio = Average Abattoir Purchasing Price (R/kg) / SAFEX Yellow Maize Price (R/kg).
Due to feed being such a significant cost component, the higher the SAFEX Yellow Maize Price in relation to the Purchasing Price, the lower the Profitability Ratio, indicating lower profitability. The opposite holds true for a decrease in the SAFEX Yellow Maize Price.
International prices are based on various weighted average price calculations per classification and/or class, market and country and serves as an indication of international prices converted into a Rand/kg price. Denmark’s price quotations are weighted average per warm kg of slaughtered (settlement) weight which is converted into cold slaughtered weight, excluding edible offal. Germany’s final price is based on the muscle-to-bacon ratio, slaughter weight and meat percentage. The USA – Iowa/Minnesota price is a purchase matrix based on both fat and muscle measurements for a 200 lb carcass base. South Africa’s carcass prices are a weighted averaged abattoir purchasing price calculated per category and class.
Kindly register on the World of Pork platform for additional information.
Follow this link for other market posts.