Georgia ag officials unveil new poultry price index
- The Georgia Department of Agriculture released the new Georgia Premium Poultry Price Index (GPPPI) this week, Feedstuffs reported.
- The GPPPI has replaced the controversial Georgia Dock price index, which the agency announced it was indefinitely suspending last month.
- The GPPPI consists of producer-generated price indexes, which will "measure the aggregate change in the price of poultry sold on contract over three periods of time," according to the state agency's website. "In conjunction, the GDA will report a percent change of sales volume for premium poultry on contract to indicate the weekly change in demand."
One of the primary concerns about the Georgia Dock was that the price index was developed by producers with little oversight. This eventually led to suspicions of price manipulation and even conspiracy among several of the major poultry producers, according to a lawsuit a smaller poultry producer filed in September.
However, the GDA seems to believe its new system has enough checks and balances to provide the necessary oversight to prevent a Georgia Dock debacle from happening again. The agency claims these prices will be more easily compared against an industry standard, which will prevent this index from skyrocketing, which happened with the Georgia Dock.
This new model also offers more transparency and supply chain traceability to the poultry production and pricing process. In addition to current prices, the new model also allows for examination and analysis of trends, providing deeper insight for manufacturers, retailers and poultry producers alike. Plus, with more predictable pricing, manufacturers and retailers can better plan or estimate their production costs and eventual profitability.