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Netback

The price of a commodity at the field, obtained by deducting transport costs and duties from the export price.

How to read the number

It shows what actually stays with the producer: two companies with identical output but different logistics earn differently.

When the metric lies

The figure is calculated, not transacted. A change of route or a rise in insurance or freight moves the netback although the world price has not shifted at all.

Also known as: netback price

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