Meat Processing Yield & True Cost Calculation Model

Meat Processing Yield & True Cost Calculation Model

This is an Excel-based model I used to calculate the true cost of different meat cuts after processing.

The main objective was to move away from using the raw purchase price as the cost of every resulting cut.

When a meat item is purchased, the original weight is not the same as the final usable weight. During processing, the product is divided into different cuts, while part of the weight goes to bones, trimming, scrap, and shrinkage.

I used this model to measure the actual yield from each batch and then calculate the real cost of the different cuts produced from it.

The model takes into account:

• Raw material weight and purchase price

• Actual processing yield

• Bones, trimming, and processing losses

• Quantity of each resulting meat cut

• Yield and cost factors for different cuts

• Processing labor and related operating costs

The result is a more accurate cost per KG for each individual meat cut, rather than applying the original purchase price to all cuts.

For example, premium cuts and lower-value outputs do not necessarily carry the same effective cost after processing. The model helps distribute the actual cost based on the quantity and yield of the different outputs.

The model can be used as a practical tool for:

Butchery Operations | Central Kitchens | Restaurant Cost Control | Meat Yield Analysis | Menu Costing

The attached screenshot shows the actual model, including the receiving statement, processing breakdown, yield calculation, and the calculated cost of the different meat cuts.