Question: per cent lean trimmings was $ 2 . 7 7 per pound. ? 1 5 The total cost to MHMT was $ 0 . 6
per cent lean trimmings was $ per pound. The total cost to MHMT was $ cents higher than the
posted Cargill rate after taking into account delivery to the farm and MHMTs inability to receive the same
quantity discounts as the large industry producers.
MHMTs meat shop was about metres by metres feet by feet and consisted of the main
production facility with smokers, industrial size fridges and freezers, grinders, extruders to form the jerky,
and a packaging machine. The rest of the space was taken up by an office space, washroom, and a storage
room for spiceswhich also doubled as a workspace for preparing the seasonings for flavour. Although
currently functional, the shop was running at almost full capacity, so a new facility or additional space
would be required if MHMT were to increase production.
In a typical daily production run, units of product could be produced and packaged using four
kilogram boxes of meat. Typically, one flavour was made per day; however, on some days, it was necessary
to split the production between two flavours. MHMT could produce a second batch of units in a day
but this often resulted in a backlog at the packaging machine. MHMT usually operated from Monday to
Friday but could operate on weekends if necessary. The total time from opening a new box of meat to
shipping the snack products was usually less than one week.
The second largest input cost in the production process was labour. Meat preparation, spice mixing,
grinding, extruding, putting the jerky onto racks and into the smokehouse, and finally cleanup took one
person around five hours. Packaging was the third largest input cost and was also the biggest bottleneck in
the production cycle. Due to its repetitiveness, packaging was difficult on an employee's arms and
shoulders. The packaging position was currently staffed but Pahl would take on shifts, especially if a double
production run was being processed. Once packaged, the jerky was ready to be distributed.
MHMT distributed the final product locally. In Medicine Hat, this meant packing the family van with beef
jerky and delivering it to the local stores. The company also used four shipping companies to send the
finished product directly from the shop to outoftown customers, depending on rates. The family had
evaluated the use of a dedicated distribution company but found the added costs prohibitive.
INDUSTRY TRENDS
Product development of meat snacks to meet changing consumer demands for convenient, nutritious,
flavourful, and fresh foods had increased manufacturers' investment. As with many modern industries,
rapid changes in markets and technology had caused volatile profitability for many players, resulting in
strategic responses such as consolidation and diversification. Acquisitions was one of the easiest ways for
companies to grow in the snackfood industry. There had also been a move by some meat production
companies to diversify their product offerings in an effort to find alternative channels of profitability. Some
large food producers were vertically integrated into the supply of livestock and slaughtering plants.
Meat producers frequently treated animals with antibiotics to prevent disease and speed growth, but the topic
had become a source of debate among stakeholders. Government agencies, health advocacy groups, and some
consumers contended that the overuse of antibiotics in food animals was giving rise to drugresistant bacteria
strains that could infect humans. Companies that phased out antibiotics could benefit from the rising demand
Question point
What was the Newburgh Conspiracy?
A plan to assassinate George Washington.
A plan by officers of the Continental Army to challenge the authority of the Confederation Congress.
A plan to free the enslaved people of New York.
A plan to sell Vermont to the British.
Step by Step Solution
There are 3 Steps involved in it
1 Expert Approved Answer
Step: 1 Unlock
Question Has Been Solved by an Expert!
Get step-by-step solutions from verified subject matter experts
Step: 2 Unlock
Step: 3 Unlock
