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LATIN AMERICAN SIRLOIN INDEX, BETA MODE (ENGLISH)

SIRLOIN INDEX (BETA MODE)

SIRLOIN INDEX LATIN AMERICAN PRICE STUDY (1Kg: FILLET)


Be:


$ = Chilean pesos in Santiago, Chile;


USD = Dollars (from the US) in Quito, Ecuador;


P = Price ($ or USD) of a package of top-of-the-range fillet (or "fine" loin) in an international supermarket (comparable quality) in a Latin American country, at the end of the month.


W = Weight (Kg) of the package (whose price is P)


P / W = Price per Kg of the package (in $ / Kg or USD / Kg)


D = Discount (the best obtainable) during the study of the calendar month.


N = Net Price (P-D)



So:



SIRLOIN INDEX ADN @ + = Final Net Price / Kg = PF / Kg


PF / Kg = N / W



If:



BIG MAC INDEX (X5) is the price of a Big Mac multiplied by 5 to approximate the price relative to 1 (in the United States) under a Likert scale (rounded to zero decimal places) (which runs from 0 to 4)



Then:



The following results are obtained for the most active countries in the Hexagonal Dialogue (in Latin America) within WWW.ADNPLUS.CO.UK:



ELABORATION:

ROBERTO F. SALAZAR CÓRDOVA

HEXAGON GROUP LATAM / UK / GLOBAL

DNA @ +


Analysis


We thank you in advance for the comments at the end of this post, in special for any rigorous suggestion, as well as any global contribution to add your country to the information provided already by the colleagues of the Latin American Regional Hexagonal Dialogue.


Global prices and discounts are appreciated contributions for the basic information, in special as executives who make the purchase in the different countries, selecting the best product to include with the best price and top discount available during the month).


We are also grateful to the British colleagues from the Santa Cruz Network for their contribution to include a vegan option in the data for Europe, and in particular to our colleagues at Hexagon Group Latam/UK/Global in the United Kingdom (London).



Research Questions (Hypothesis for Discussion):



If in yellow bars (see the table) we have the price of 1 kg of fillet (loin, fine) as reported in the countries; if the cost of the Big Mac is shown in blue bars; and if in red bars, we have the relative price (fillet / bigmac), then:


1. Sirloin Index is a simple and understandable metric to analyze very quickly, with just a glance, the possible relative-costs of a scope-ratio between a standardized good regularly consumed in business segments (investors) and promoters (entrepreneurs)?


2. Relating steak to big mac serves to look at relative well-being between territories? (relative prices on a competitive international numeraire) based in the value that an expatriate family can give to either: a fillet, or a bigmac.


3. If quality meat or a top vegetarian (or even vegan) alternative to it can be produced by local value chains, and Sirloin is the Queen of the table: can we have a simple investment and community metric, in terms of approach to a "business-in-the-community" model, with other relations (such as 2, above) be settled for comparison?



Conclusions:


If all the previous works, our objective (for abandoning this beta version) is that ADN@+ be equal to SIRLOIN INDEX / BIG MAC INDEX (x5), and be defined as an additional private efficiency index, running under a LIKERT SCALE OF ZERO TO FOUR, as a measure of investment desirability (eg relative retail profitability versus food in franchised supermarkets)?


For the analysis of the State, we have already developed ADN- Political Inequality Index:

For the future, we need not only a couple of public and private inequality and inefficiency indexes, we need a third cohesive index for communities.



Next Steps:


Hypothesis (in an upcoming paper): Comparing ADN@+ vs ADN- Indexes, and by having a minimum distance to communities (with minimum inequality and maximum efficiency), we can mark sustainable impact investment among public authorities, private investors, and project promoters in communities.


In the future, we invite you to discuss, how low profitability in food is not necessarily a good thing for other sectors interested in impact investments.


robertos@cspinc.tech



 

SIRLOIN INDEX ™ is a registered trademark of ADN @ + ™ and Hexagon Consultores Cía.Ltda. ™


BIGMAC ™ INDEX ™ is a registered trademark of TheEconomist ™ and McDonalds ™


ADN @ + SIRLOIN INDEXBIG MAC INDEX




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