Excerpt from Centralized Processing of Fresh Meat for Retail Stores: An Interim Report
Processing retail cuts of fresh meat in a central plant for a group of retail stores can save thousands of dollars annually in construction, equipment, and labor costs-as 'much, for example, as for a group of 40 stores with a yearly meat volume of Benefits from such reductions in marketing costs are likely to be shared by consumers through lower prices at retail and by producers through higher prices for livestock.
These savings were projected from results obtained by research in smaller central plants. The savings represent approximately half of the Operating costs, compared to those of a firm processing an equivalent volume of meat in conventional-store meat backrooms.
Central meat processing offers additional Opportunities for savings due to: (1) Better distribution of meat cuts according to market preferences, (2) more uniform and efficient cutting methods, (3) better control of overhead costs, (4) advantages of quantity pur chases, and (5) a better market for carcass byproducts.
Central processing of fresh meats has been attempted in this country by a number of firms, but, except in a few cases, has not been successful. The primary difficulties en countered by these concerns appeared to be over-ordering or under-ordering, due to poor production planning and control; and lack of shelf life, due to improper sanitation and temperature control. Because of the limited shelf life of fresh meat, quantities on display and production must be carefully controlled.
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