Least Cost Formulation of Meat Products

1
Least Cost Formulation of Meat Products

• Animal Science 555.02
• Lynn Knipe
• Ohio State University

2
Least Cost Formulation

• A misnomer (e.g., best use, optimal allocation)
• A mathematical technique for
• Reducing the cost of meat ingredients (1-6 per
  lb).
• while making best use of limited raw
  materials, and
• while maintaining the product consistency
  (color, firmness, juiciness, etc.).

3
Standard Formula or Fixed Recipe

• Traditional approach
• More common with plants that also slaughter.
• Cant adjust with changes in prices and quality
  of meat.
• Could only adjust one variable (e.g., fat), at
  best.
• Fewer choices.

4
Ingredient Product Attributes vs. Parameters

• Attributes quality, composition (fat, bind,
  moisture, color, etc.)
• Parameters limits or constraints set for each
  ingredient in a finished product.

5
Key Blending Variables

• fat moisture (40 rule), protein
• Bind and/or color value
• Water-holding capacity
• Meat (species) label order
• Product cost
• Raw material availability

6

• Ohio Packing Company paid for their system
  (20,000) in 21 days.
• Sometimes lower fat products are cheaper to
  formulate, can add more water.
• More restrictions cost penalty.