Worked scenario
Bought by the carcass, sold by the cut, margin by assumption
Where one input becomes many outputs at different prices, margin depends entirely on yield, and yield is the number least often measured.
3 min read
A carcass produces cuts of widely differing value plus trim, bone and loss. The economics depend on how much of each is actually obtained.
Standard yields are approximations
They vary with the animal, the supplier and the person cutting. Using a standard figure means the margin calculation is right on average and wrong on any given week.
Trim is where value leaks
Trim has value if it is sold as something. Recorded and priced deliberately it contributes; unrecorded it becomes part of an unexplained gap between what was bought and what was sold.
What changes
- Purchase weight recorded per carcass or lot
- Yield by cut measured against the input
- Trim and bone accounted rather than ignored
- Pricing set from actual yield rather than a standard
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