Quick Tips to a Better Profit Margin in the Meat Industry

in News

The meat industry is highly volatile, and the meat processing business is expanding its facilities to cope with the rising demand.

It is challenging to gain substantial profit margins in the meat industry, customarily driven by high volumes and low margins. But with the right planning and strategy, you can contribute to significant profit margins for your business.

Butcher Shop
Here are two scenarios you must be well-prepared for:

   1. When the demand exceeds the supply

The meat industry has extreme demands at times. There are times when there is a low demand and other times when the demand reaches a peak.  What if the volume of your meat goes down drastically and you face a shortage without anticipation? How would you be able to handle that?

To understand and plan for this situation in advance, you must have the answers to certain questions ready.

  1. Are you able to address the shortage of meat at this point?
  2. Can you use substitutes by using alternative raw materials?
  3. Can you make up for the shortage by making last-minute purchases from the market?
  4. Can you use some of the materials in stock with the shelf life-extending processes like tempering or vacuum packing?

Along with answers for the above questions, it is essential to forecast and have your operations' visibility for such situations. Once you have the visibility, you can plan the other essentials such as material, cost, labor, fulfilment, and transportation.

   2. The risk of over-blending

What is blending? Blending is the process that leads to meat pieces, and meat trimmings to convert into a variety of desirable end products such as sausages, patties, hot dogs, or minced meat.

Whatever your end product might be, several variations are involved. Some recipes require very specific ingredient flavorings, fragrances, or colorings. However, the goal is to achieve a desirable combination that is frozen fresh and has proper meat-fat ratios.

Many butchers often tend to over-blend to create a high-quality end product to meet the optimal formulation specifications. Though it might be a great deal for the customer, it can cause a blow to the butcher's profit margin.

But if you choose to be a little flexible in your recipes, you will balance the daily supply and demand in a better way. Maintaining the right balance in the blending can minimize the unsellable cuts and meats reduced to wastage.

When you have the right planning and forecasting for your meat processing operations, you can achieve better profits. An optimal KPI-driven solution that manages significant challenges such as shortage of supply, over blending issues, and meat wastage should be put to action. Maximize your capacity and boost your profits within no time. You can add a lot of value if you make the right decisions through your meat processing operations. You must be able to work with constraints and turn them around to gain good profit margins.

Having the right set of tools and butchering equipment can help you eliminate meat wastage and deliver faster results. Visit the Brennan Group to shop for a range of meat processing supplies!