Consumer Staples

Transforming The Meat Industry

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<h2 class="MsoNormal" style="text-align: justify;"><span style="font-size: 12pt;">Q1. Could you start by giving us a brief overview of your professional background, particularly focusing on your expertise in the industry?</span></h2><p class="MsoNormal" style="text-align: justify;">I have an extensive background in the meat industry. I have specialized in every aspect of the meat factory.&nbsp;(<a href="https://earthwormexpress.com/the-meat-factory/" target="_blank" rel="noopener">The Meat Factory</a>).&nbsp;I am not a deboner or a butcher, but I gained my knowledge from the&nbsp;perspective of a food scientist, an entrepreneur, and a plant manager. I created a meat processing company in Cape Town, South Africa, and after 8 years, we produced 20 metric tons of bacon and sausages per day.</p><p class="MsoNormal" style="text-align: justify;">When I left the company in 2018, I started working as a consultant and designed the largest meat plant in West Africa, which I am currently commissioning. I train the staff, participate in the management, and design every process. I take ownership of delivering a fully functioning plant to the owners with all systems intact for it to be a profitable operation. I consult with companies around the globe.</p><p class="MsoNormal" style="text-align: justify;">I excel&nbsp;in developing strategies where new thinking transforms the results, such as when I redesigned the block test and made it possible almost to double the revenue generated on a carcass. (<a href="https://earthwormexpress.com/the-meat-factory/the-data-driven-meat-plant/" target="_blank" rel="noopener">The Data-Driven Meat Plant</a>). I am a diligent student continuing to study everything related to the trade and managing a meat plant, with a special interest in data management, management, and meat science.&nbsp; I actively share my knowledge through <a href="https://earthwormexpress.com/" target="_blank" rel="noopener">EarthwormExpress</a>, where I delve into the intricacies of meat science, discuss innovative practices, and explore the latest trends in the industry. I aim to make high-quality protein accessible and affordable, leveraging both traditional and plant-based sources.</p><p class="MsoNormal" style="text-align: justify;">&nbsp;</p><h2 class="MsoNormal" style="text-align: justify;"><span style="font-size: 12pt;">Q2. What are some efficient strategies to reduce costs in meat production without compromising quality or service levels?</span></h2><p class="MsoNormal" style="text-align: justify;">Rethink the way everything&nbsp;is done. See the raw material as data and work from there. (<a href="https://earthwormexpress.com/the-meat-factory/" target="_blank" rel="noopener">The Meat Factory</a>) The second thing is to exclude noise from thinking. This is, however, a more long-term strategy, and doing so requires focus and dedication. I would look at the main expenses, the number one being repair and maintenance.</p><p class="MsoNormal" style="text-align: justify;">To begin with, I will select appropriate equipment for the operation and not get sidetracked by what the equipment suppliers want you to buy. The same with the spice companies. I will stick to what works. I would look at manpower. Remember that the meat plant is a complex environment. As a long-term strategy, I incorporate at least one of the following strategies into the operation every month. (<a href="https://earthwormexpress.com/the-meat-factory/enhancing-operational-efficiency-integrating-biological-information-flow-principles-in-meat-plant-operations/" target="_blank" rel="noopener">Enhancing Operational Efficiency: Integrating Biological Information Flow Principles in Meat Plant Operations</a>).&nbsp;</p><p class="MsoNormal" style="text-align: justify;">All that glitter is not gold!</p><p class="MsoNormal" style="text-align: justify;">&nbsp;</p><h2 class="MsoNormal" style="text-align: justify;"><span style="font-size: 12pt;">Q3. Are there recent or planned investments in meat production technology to improve the operational efficiency of the supply chain?</span></h2><p class="MsoNormal" style="text-align: justify;">Our most significant recent investment has been in Matrix Software, which provides comprehensive tracking and data integrity within the meat plant. This system allows for detailed monitoring of inventory, production processes, and product traceability, ensuring efficient operations and decision-making.</p><p class="MsoNormal" style="text-align: justify;">Additionally, we have invested in an ECA (Electrolyzed Chemical Activation) generator, which significantly reduces the need for traditional sanitizing chemicals by up to 80%. This technology enhances plant hygiene and safety while being environmentally friendly and cost-effective, as it generates effective sanitizing agents using only water and salt. (.<a href="https://earthwormexpress.com/the-meat-factory/eca-generated-radical-water/" target="_blank" rel="noopener">ECA-Water</a>)</p><p class="MsoNormal" style="text-align: justify;">&nbsp;</p><h2 class="MsoNormal" style="text-align: justify;"><span style="font-size: 12pt;">Q4. How do you use data and analytics to drive continuous improvement in meat production?</span></h2><p class="MsoNormal" style="text-align: justify;">In 2018, developing a central meat plant in Nigeria emphasized the importance of data-driven operations. Key lessons included the sanctity of data, shifting perspectives on carcass management, and integrating advanced data capture systems like Matrix Software. This software facilitates comprehensive tracking, which is essential for optimizing production. Viewing the carcass as a collection of variable inputs rather than fixed outputs enhances profitability. Creating dynamic dashboards and functional feedback loops, inspired by principles such as limiting reagents in chemistry, helps maximize product yield and efficiency. Integrating modern technologies like AI and automation further improves operational capabilities, ensuring data informs every aspect of the plant's operations, from deboning strategies to final product development.&nbsp;</p><p class="MsoNormal" style="text-align: justify;">&nbsp;</p><h2 class="MsoNormal" style="text-align: justify;"><span style="font-size: 12pt;">Q5. How do you leverage your distribution network to improve overall supply chain efficiency and customer satisfaction?</span></h2><p class="MsoNormal" style="text-align: justify;">Leveraging a distribution network effectively requires partnering with firms that have a strong national or regional presence. This ensures that products are delivered to clients promptly, meeting demand reliably. Senior management must prioritize securing adequate funding for supply chain operations, particularly for perishable, chilled products where timing is critical.</p><p class="MsoNormal" style="text-align: justify;">Challenges include managing logistics and inventory, especially with guaranteed buyback agreements. A robust supply chain infrastructure, integrated with a comprehensive data management system, is vital for maintaining efficiency and meeting customer expectations.</p><p class="MsoNormal" style="text-align: justify;">&nbsp;</p><h2 class="MsoNormal" style="text-align: justify;"><span style="font-size: 12pt;">Q6. What methods do you use for demand forecasting?</span></h2><p class="MsoNormal" style="text-align: justify;">Demand forecasting in meat production must prioritize data-driven analysis, leveraging historical sales data, market trends, and consumer behavior insights.</p><p class="MsoNormal" style="text-align: justify;">Collaborating with the sales team ensures that forecasts are realistic and account for current market conditions.</p><p class="MsoNormal" style="text-align: justify;">A key component is the creation of a promotional grid, developed in partnership with retailers, which outlines planned promotions and sales strategies. This grid should be integrated with production schedules and logistics planning, ensuring that the supply chain is aligned with forecasted demand and efficiently meets customer needs. This comprehensive approach helps optimize inventory management and reduce waste.</p><p class="MsoNormal" style="text-align: justify;">&nbsp;</p><h2 class="MsoNormal" style="text-align: justify;"><span style="font-size: 12pt;">Q7. If you were an investor looking at companies within the space, what critical question would you pose to their senior management?</span></h2><p class="MsoNormal" style="text-align: justify;"><strong>Operational Efficiency</strong></p><p class="MsoNormal" style="text-align: justify;">How do you leverage data and analytics to optimize your output and control cost?</p><p class="MsoNormal" style="text-align: justify;"><strong>Technology Integration</strong></p><p class="MsoNormal" style="text-align: justify;">What recent technological investments have you made, and how have they impacted operational efficiency and product quality?</p><p class="MsoNormal" style="text-align: justify;">What are you planning for the next 12 months and what do you expect to get from it?</p><p class="MsoNormal" style="text-align: justify;"><strong>Supply Chain Management</strong></p><p class="MsoNormal" style="text-align: justify;">How do you manage and optimize your supply chain, particularly for chilled and perishable products?</p><p class="MsoNormal" style="text-align: justify;"><strong>Financial Performance</strong></p><p class="MsoNormal" style="text-align: justify;">Provide detailed metrics on production output, gross profit projections, actual sales, and budget deviations.</p><p class="MsoNormal" style="text-align: justify;"><strong>Market Adaptation</strong></p><p class="MsoNormal" style="text-align: justify;">How do you respond to changes in market demand, and what strategies do you have for demand forecasting?</p><p class="MsoNormal" style="text-align: justify;"><strong>Sustainability and Innovation</strong></p><p class="MsoNormal" style="text-align: justify;">What sustainable practices have you implemented, and how do you innovate in product development?</p><p class="MsoNormal" style="text-align: justify;"><strong>Procurement</strong></p><p class="MsoNormal" style="text-align: justify;">What is your procurement strategy, and how do you plan to dominate the supply of input material?</p><p style="text-align: justify;"><span style="font-size: 11.0pt; line-height: 107%; font-family: 'Aptos',sans-serif; mso-ascii-theme-font: minor-latin; mso-fareast-font-family: Aptos; mso-fareast-theme-font: minor-latin; mso-hansi-theme-font: minor-latin; mso-bidi-font-family: 'Times New Roman'; mso-bidi-theme-font: minor-bidi; mso-ansi-language: EN-IN; mso-fareast-language: EN-US; mso-bidi-language: AR-SA;">&nbsp;</span></p><p style="text-align: justify;">&nbsp;</p><p style="text-align: justify;">&nbsp;</p><p style="text-align: justify;">&nbsp;</p><p class="MsoNormal" style="text-align: justify;">&nbsp;</p>
KR Expert - Eben van Tonder

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