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 matches the sales.

  • Given my pig population, does my current product mix represent the most profitable combination?
  • Given my market demands, is my pig supply the best suited to maximize the profit?
  • Given my pigs and the market, how can I maximize the profit through optimal carcass utilisation?

Allow the DMRI experts to support you in finding the answers to these questions through a comprehensive service catalogue.

DMRI Pork Profit™ - Pig Purchasing

Optimal pig supply

Whether a pork meat industry produces their own pigs or purchases them at the market, the available carcass online measurement systems offer a powerful tool to drive the population to the highest value in accordance with the targeted markets.

E.g., an improvement of the LMP of +1% typically corresponds to a gain of +0.015 EUR/carcass kg.

A 'Yield Model' consists of a set of equations that relates the company's margin to the measured variables for a certain type of pig and range of products and specifications. These equations provide objective information of how the pigs are suited for producing the final articles and are the backbone of the service.

To develop these equations, a number of cutting tests are carried out in close cooperation with the company's key staff under the supervision of DMRI's expert butchers for a representative population of the pigs.

The DMRI Pig Purchasing service transforms the developed Yield Model equations into a comprehensive and tailor-made set of payment criteria, which are introduced into the flexible software module that gathers the needed information and measurements from the traceability system and calculates the payment per batch.

The software tool includes a powerful BI tool to effectively provide the suppliers with the proper feedback and benchmarking.

The methodology and work plan for the DMRI Pig Purchasing is as follows:

Please note that the DMRI Pig Purchasing service shares the Yield Model with the DMRI Pork Sorting service, so they can be combined in the same project – phases 1 to 6 would be the same.

DMRI Pork Profit™ - Pork Sorting

Optimal carcass utilisation

The carcass usage optimisation is all about matching quality requirements with the carcass attributes to maximize the total value of the carcasses.

Based on DMRI's experience, an estimation for optimum usage versus a random usage corresponds to a turnover increase of around 7%.

A 'Yield Model' consists of a set of equations that relates the company's margin to the measured variables for a certain type of carcass and range of products and specifications. These equations provide objective information of how the carcasses are suited for producing the final articles and are the backbone of the service.

The available population of pigs, the Yield Model equations, the production planning and the restrictions imposed by the quality specifications conform a Mixed-Integer Programming problem where the profit is the variable to be maximized.

The DMRI Pork Sorting service and software resolve this optimisation problem, providing a powerful simulation tool to explore the different possibilities and have a clear insight into the optimal sorting criteria.

The software module, in communication with the MES level, is fed with the dynamic sorting criteria to create the different groups of carcasses that will be connected to the existing production planning to define how each group will be used to produce the different articles.

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

Please note that the DMRI Pork Sorting service shares the Yield Model with the DMRI Pig Purchasing service, so they can be combined in the same project – phases 1 to 6 would be the same.

DMRI Pork Profit™ - Pork Pricing

Optimal product mix

A robust costing and pricing system forms the base for the decision making at the Sales Department. It allows profit maximization 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.

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:


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