Rosderra notifies suppliers about price structure changes

Rosderra suppliers have received notification of changes to their grading structure which will see price penalties enforced on animals outside the desired weight and lean meat percentage.

Farmers have been informed that they will not receive a flat rate price for their pigs and that price penalties will be applied to pigs that do not weigh between 80kg and 94.99kg, and those with less than 60% lean meat.

In a letter to suppliers Rosderra outlined that as international pig meat markest continue to become "more selective" and "quality conscious" it has endeavoured to extract the maximum value for the pigs they purchase and process through their plants.

Rosderra stated: "This has allowed us to identify a strong customer base who pay good competitive prices for the meat products we supply across a wide and diverse customer range.

"To allow us to maintain and build on this competitive advantage and stay ahead of commodity product prices we are now at the point where we need to reflect the different value, we receive for different quality of pigs we slaughter.

"This differentiation in value will be driven by customer specifications, where specific weight ranges, lean meat values and pig health influences the returns we get from the market place.

"It is our intention to now reflect these different values in our pig pricing."

Grading and pricing

The new Rosderra pig quality payment system is as follows:

Weight range (deadweight)Value c/kg (Base)
Less than 70kg -40c/kg
70-74.99kg-10c/kg
75-79.99kg-5c/kg
95-99.99kg-5c/kg
100-104.99kg-10c/kg
105-109.99kg-20c/kg
110-119.99kg-30c/kg
120-129.99kg-40c/kg
More than 130kg-80c/kg

The new Rosderra pricing structure for lean meat percentage is as follows:

Lean meat (%)Base
59-59.99-2.5
58-58.99-2.5
57-57.99-2.5
56-56.99-2.5
56 or less-2.5

Rosderra has confirmed that it will start the roll-out and implementation of the new pricing structure in the week beginning November 10.

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