Abstract:

Kansas State University Lean Value Marketing Program

Garry L. Keeler, MS; Mike D. Tokach, MS, PhD; Jim L. Nelssen, MS, PhD; Robert D. Goodband, MS, PhD; and Steve S. Dritz, DVM

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The Kansas State University (KSU) Lean Value Marketing Program was designed to investigate the value of pigs marketed on a wholesale-cut basis. This program allowed producers to directly compare the actual wholesale value of their pigs with the value of pigs from other producers. Sort loss penalties and yield premiums were calculated in a manner typical of carcass-merit systems. Grade premium was determined on the basis of wholesale cuts.Although sort loss bears no relationship to the quality of the pigs being marketed, it has an enormous impact on producer profitability from carcass-merit buying programs. Differences in grade premiums among herds were substantial; however, yield was not positively correlated with grade and should not be construed as a quality premium. Of the wholesale cuts, loins were most closely correlated with carcass value, representing 21% of the carcass weight, but approximately 40% of the total carcass value. Backfat thickness alone was not as accurate as loin weight in accurately predicting lean, heavily muscled pigs. This study demonstrated that a wholesale-cut system would provide a large economic incentive for producing uniform, lean, heavily muscled pigs.

Keywords: marketing

RIS citationCite as: Keller GL, Tokach MD, Nelssen JL, et al. Kansas State University Lean Value Marketing Program. J Swine Health Prod 1994;2(2):30-35.

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