Why the Pork Industry is Unique

Every pig is unique, even within the same breed, showing variations in size, weight, and body composition. Meanwhile, meat plants encounter a wide range of products that must meet specific requirements. These specifications define not only the overall characteristics of the products, such as bone-in or boneless and skin-on or skin-off options, but also set limits on size, weight, and fat levels.

In this context, when we choose a particular product combination at given market prices, different pigs would yield different economic results. Additionally, some pigs may not even meet the required specifications, which means they cannot be utilized. This means that certain pigs maximize profit for specific product combinations, while others are suboptimal or may not be suitable.

Alternatively, if we were to explore all possible product combinations using a single pig, we would discover a specific combination that maximizes profitability for that particular pig. However, it is important to note that the optimal combination would differ for each unique pig.

Therefore, given certain market demands, there is a theoretical ideal utilization of the available carcasses to produce the different products that meet quality specifications and maximize profitability.