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.
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