Subprimal purchasing and merchandising decisions for pork: relationship to retail value

Area of Science:

• Meat Science
• Food Processing
• Agricultural Economics

Background:

• Retail pork value and profitability are influenced by cutting techniques and purchasing specifications.
• Optimizing pork fabrication methods is crucial for maximizing returns in the retail sector.

Purpose of the Study:

• To evaluate the retail value and profitability of different pork subprimal cutting methods.
• To determine the impact of cutting style and purchasing specifications on pork value differentials and gross margins.

Main Methods:

• Simulated retail cutting room tests were conducted on various pork subprimals, including bone-in loins, boneless loins, Boston butts, and hams.
• Processing times and retail weights were recorded to calculate relative value, value differential (US$/subprimal), and percentage of gross margin.
• Statistical analysis (P < .05) was used to assess the effects of cutting style and purchasing specifications.

Main Results:

• Cutting style significantly affected the value differential for both bone-in and boneless loins.
• Purchasing specifications impacted value differential across bone-in loins, boneless loins, Boston butts, and inside fresh hams.
• Processing bone-in loins to a boneless end point resulted in greater value differential and gross margin compared to bone-in end points.
• Bone-in loins fabricated to a boneless retail end point outperformed boneless loins fabricated similarly, attributed to increased retail cut yield.
• Thick, boneless loin cutting styles were more profitable than thin styles due to lower fabrication costs and higher retail cut value.

Conclusions:

• Boneless pork cutting methods are generally more profitable than bone-in methods across various subprimals.
• Fabricating bone-in loins to a boneless end point enhances retail value and profitability.
• Optimizing cutting styles, particularly for boneless loins, can significantly improve economic outcomes in pork retail.