DMRI Pork Pricing

Jesús Manuel Siles Aceña

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DMRI Pork Pricing

DMRI Pork Pricing

Pork Pricing is a suite within DMRI Pork Profit ®

DMRI has developed a full suite of services & software tools that will assist you in harvesting the hidden profit throughout the pork value chain.

The value creation in the pork meat industry is determined by how the pig population and the sales match:

  • How to drive the pig supply towards the maximum profit according to the sales
  • How to maximise the profit through optimal carcass utilisation
  • How to maximise the profit through optimal slaughtering, cutting and deboning operations
  • How to find the sales product mix, which represents the most profitable combination

A robust cost and pricing system forms the base for the decision making at the Sales Department. It allows profit maximisation by means of the optimal product mix.

Such a system starts with the weekly price of the pork carcasses, which is transformed into individual 'break-even prices' – minimum price at which one article can be sold to obtain an even result – of all the possible sales articles by adding the related costs and introducing consistent splitting criteria based on standard cutting tests.

 

Please read DMRI - Pork Pricing

The purpose of the service and the software module is to provide the company with the insight to master the model and with a strategic comprehensive tool that allows:

  • Yield control monitoring.
  • Sales profit forecasting.
  • Objective comparison of sales options.
  • Determination of new products' sales prices.
  • Profitability by product mix, comprising customers, sales channels, etc.

The methodology and work plan for the DMRI Pork Pricing is as follows:

Pork Pricing Methodology and work plan