This September the farm-to-retail pork price spread hit a new record-high of $3.24 per pound. The farm-to-retail price spread is the calculation between how much the farmer receives versus how much the retailer receives on a per-pound basis. There is the assumption that all players along the supply chain must make some money to stay in business and keep product moving. However, the width of that margin varies by sector and the economic environment in which each segment operates. These calculations are done on a monthly basis by the Agriculture Department’s Economic Research Service.
Over 50 percent of the retail value is in the retail-to-wholesale price spread, but in September that number surged to 68 percent. In part, this is due to the retail portion climbing since the beginning of the year.