Making the Cut: How Technology Will Sharpen Profitability in Meat Processing

While several factors can affect the profitability of a meat processing plant, cutting decisions have a particularly significant impact. With numerous options available for dividing and packaging each carcass, these decisions hold tremendous weight, particularly when processing hundreds or thousands of carcasses daily. The effect on profitability can be substantial.  

The meat industry can now access cutting-edge technologies to assist with the challenging task of meat processing. As artificial intelligence (AI) continues to impact various areas of our lives (hello, ChatGPT!), incorporating advanced AI technologies should be a top priority for meat processors. By collecting data from different sources within the organization and applying AI and machine learning, processors can generate the best possible decision-making scenarios, ensuring that the production floor's decisions are optimized, resulting in the most value obtained from every processed carcass.

AI-powered solutions can also consider current consumer trends and offer immediate recommendations on the optimal way to cut and package each carcass following consumer demands and preferences. This not only ensures that companies are producing the appropriate products but also preparing them in the most suitable manner, resulting in increased profitability for the operation.

Sharpen your decision-making

The meat processing industry is highly competitive, and with tight profit margins, there is little room for errors. Decisions related to cutting and sorting meat are particularly challenging due to the numerous variables that must be considered. For instance, dividing a single beef carcass presents over a million potential methods, and more than 1.5 million limitations must be considered. These restrictions encompass factors such as the size and shape of individual portions, the placement of bones and inedible sections, and the quality of the meat.

The complexity of this process is especially pronounced when cutting the sirloin, one of the most valuable parts of the beef carcass. With over 2.3 million possible alternatives, this becomes a difficult and time-consuming task.

For example, when deciding whether to produce boneless or bone-in products, it's important to consider the variable by-product values of those cuts. These values can have a significant impact on the final decision.

Another example is when the beef carcasses' grades differ from what customers demand. How do you decide which are the best products to produce to enable the most profitable sale on the spot market? Do you take a chance and overproduce a product for an existing customer hoping that they can utilize more product, or do you play it safe and make products that are more commonly traded in the marketplace but at a lower value? In addition, labor constraints and capacity limitations significantly complicate this decision.

Using spreadsheets or relying on industrial knowledge is not enough to make optimal cutting decisions. The complexity of these decisions goes beyond human brain power. Hence, new technologies that utilize AI and machine learning to process large amounts of data can help make the most informed and profitable cutting decisions.

Get the most out of your data

The meat processing industry needs to improve how it handles data to make more informed decisions. Incorporating advanced AI technology will help gather data from various sources and create a more effective decision-making process. The new approach will combine know-how with real-time data analysis, leading to better, more informed decisions and a more effective and optimized meat processing industry.

The Völur carcass value optimization solution is a game changer for the industry, offering a comprehensive approach to data collection and analysis. With its ability to gather information from a wide range of sources, including forecasts for supply and demand, current inventory levels, and cutting patterns, this solution is poised to revolutionize how companies approach profitability. By generating optimized options based on this wealth of data, the Völur solution provides meat processors with the tools they need to make informed decisions and drive success.

The Völur solution helps meat processors extract the maximum value from every carcass and every cut, leading to increased profitability and efficiency.

At the core of the Völur solution are three key components:

1. Daily Production Planning: Provides meat processors with the right cutting patterns and recipes, enabling the optimal number of animals needed for a given demand.

2. Tactical Inventory Planning: Offers recommendations for building up inventory and managing stock levels, helping businesses stay ahead of demand.

3. Business and Operations Planning: Puts data into context, enabling meat processors to scale the solution to different production facilities.

Völur also tailors their solution to your business goals and constraints. With a team of experts behind the technology, they help customers quickly turn insights into action and drive measurable improvements.  

The meat processing industry is facing an ever-growing need to make cutting and sorting decisions faster, more accurately, and cost-effectively. With technology such as artificial intelligence and automation, meat processors can remain competitive in an ever-shifting market, ensuring profitability for years to come. Don't be left behind - get on board with the technology that is driving the industry forward.

See how Völur’s solution can help you make the most out of your data here.