Dive Brief:
- An internal memo from the Georgia Department of Agriculture (GDA) obtained by The Washington Post questions the validity of the Georgia Dock poultry pricing index, the news organization reported.
- GDA Public Affairs Director Arty Schronce wrote the memo, asserting that the index, which is based on self-reported transactional data from eight poultry companies in the state, may contain inaccurate information. He also noted turnover within the agency and at the poultry companies, which has "created a void in experience and knowledge about markets, prices and the poultry industry," Meat & Poultry reported.
- Schronce called the Georgia Dock "a flawed product that is a liability to the Georgia Department of Agriculture."
Dive Insight:
The GDA's internal memo comes not long after the Georgia Dock received intensified scrutiny from the media and industry experts. They believe the pricing index may be higher than it should be, especially when compared to other indexes like the Urner Barry, which restaurants and foodservice companies use.
Earlier this month, The New York Times reported that the Georgia Dock priced 2 1/2 to 3 1/2-pound chickens at $1.10 per pound, a 5% decrease from 18 months ago. The Urner Barry index priced the same chicken at $0.72 per pound for the same time period, a 33% decline from 18 months prior.
This could spell the end for the Georgia Dock, especially considering Schronce's recommendations in the conclusion of his memo. He recommended that the GDA discontinue the index or transfer it to the Georgia Poultry Federation or an independent entity. Several poultry companies also currently face a lawsuit regarding claims of pricing manipulation, which could be another strike against the Georgia Dock if an investigation validates those claims.
If the GDA does discontinue the Georgia Dock, the next question is what its replacement will be. If the agency doesn't feel it can rely on self-reported data to create a pricing index, it will need to find another method, such as third-party sources.