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Optimal Beef Carcass Breakdown for Niche Marketing

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Optimal Beef Carcass Breakdown for Niche Marketing – PowerPoint PPT presentation

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Title: Optimal Beef Carcass Breakdown for Niche Marketing


1
Optimal Beef Carcass Breakdown for Niche Marketing
  • Skyline Premium Meats, LLC

Jared Burner Morgan Allen AAEC 5024 Mathematical
Programming for Agricultural Economists 12/6/06
2
Background
  • There has been an increase in the number of
    producers that have converted to niche marketing.
  • Why?
  • To influence production risk
  • To influence market risk
  • To increase overall profitability

3
DATA USED
  • Data was used from Skyline Premium Meats, LLC in
    Luray, VA
  • Data collected from 6 different carcasses
  • Included quantity of each cut (not the maximum
    amount you can get)
  • Sales data collected from June 1st Oct. 11th
  • Pricing policy used by Skyline Premium Beef

4
OPTIMIZATION OF CARCASS BREAKDOWN
  • WHY?
  • To meet consumer demand
  • To move product faster
  • To set prices
  • Ultimately to optimize profits

5
BREAKDOWN OF CARCASS
6
CARCASS
Chuck
Rib
Loin
Round
Short Plate
Flank
Shank
Brisket
Riblets Hamburger Stew Beef
Arm Roast Chuck Roast Hamburger Cube
Steak Stew Beef
Arm Roast Hamburger Stew Beef
SHORT NY Strip Porterhouse T-bone Filet Hamburger
Stew Beef SIRLOIN Sirloin Loin Tips Hamburger Stew
Beef
Flank Steak Hamburger Stew Beef
Brisket Hamburger Stew Beef
Rib Delmonico Hamburger Stew Beef
Rump Roast Eye of Round Hamburger Stew Beef
7
Carcass Percentages - Constraints
8
Carcass Breakdown Comparison - Weight
9
Carcass Breakdown Comparison - Value
10
Other Factors To Consider
  • Niche market moving to a commodity market
  • Consumer demand/tastes preferences
  • Feed optimization
  • Size of each animal varies
  • Which cuts are predominate may change when cost
    is factored in
  • Timing to optimize carcass and to sell as many
    carcasses in a year as possible

11
CONCLUSION
12
QUESTIONS?
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