The challenge of selling lamb carcasses in the meat industry is a classic example of balancing supply and demand for different cuts. While some cuts such as loin and rib chops are popular and sell quickly, others move much more slowly, creating a major challenge. These slower-selling tracks often require deep discounts to sell, putting tremendous pressure on profit margins.
So there are only two possible solutions:
- Sell whole or half lambs. The problem with this approach is that 99% of buyers here are only driven by price because they now take “the good, the bad & the ugly“.
- Sell cuts but find a way to balance the imbalance between supply and demand of different cuts.
To address the above, we have developed a strategic approach: we turn these slow-selling cuts into instant meals, optimising their value and improving our bottom line.
The Problem with Slow-Selling Cuts
In the business of selling fresh or frozen meat, a “sell by date” presents unique challenges. As our LANDRANI® Lamb is 100% traceable the consumer knows exactly when the lamb was slaughtered, which means we treat the frozen cuts the same as fresh cuts when it comes to the amount of time we have to deliver the product to the consumer. Loin and rib chops, for example, are highly sought after and sell at a premium. However, other parts of the lamb, such as the leg, shoulder and neck, do not have the same level of demand. These cuts often go unsold, leading to the need to run huge specials just to sell the inventory. This practice, although necessary to avoid losses, eats significantly into profit margins and neutralizes the extra profit on the sought-after cuts.
The Solution: Increased Value of Slow-Selling Cuts in Instant Meals
To counter this challenge, we implemented a strategy to increase the value of our slow-selling cuts by turning them into instant meals. This approach serves several purposes. First, it adds value to cuts that would otherwise require heavy discounts. Second, it enables us to offer a diverse range of products that appeal to different segments of the market. Finally, the quick meals themselves can earn higher margins, helping to offset the lower margins on fresh cuts.
Instant Meals: A New Channel for Profit
We have developed a range of quick meals using these slow-selling cuts. This includes, among others:
- Lamb curry
- Lamp pie
- Lamb lasagna
- Shepherd’s pie
- Tagliatelle with Lamb Ragout
- Oriental Lamb Strips
- Lamb bobotie
- Spaghetti and Lamb Meatballs, and more.
Advantages of Instant Meals
By turning slow-selling cuts into instant meals, we can better manage inventory and improve our profit margins. Here are some key benefits:
- Increased Margins: Quick meals typically have higher margins compared to fresh cuts. By selling these meals, we can generate more revenue from the same amount of raw product.
- Reduced Wasting: By using all parts of the lamb, we minimise wastage and ensure we get maximum value from each carcass.
- Market differentiation: By offering a range of quick meals, we differentiate ourselves from competitors who may only sell fresh cuts. This differentiation can attract new customers and build brand loyalty.
- Flexibility in Pricing: Instant meals can be discounted if necessary to move inventory without affecting margins as badly as discounting fresh meat would.
Competitive Advantage
This strategy not only addresses the problem of slow-selling cuts but also positions us well in a very competitive market. Instant meals are convenient and appealing to a wide demographic, including busy families and individuals looking for quick, nutritious meal options. By harnessing the softness, versatility and exceptional taste and flavour of lamb, we can create products that stand out in a crowded market.
In conclusion
Turning slow-selling lamb cuts into instant meals is a strategic approach that addresses the challenges of inventory management and profit margins in the fresh meat industry. By adding value to these cuts, we can reduce losses due to wastage, increase revenue and offer a diverse range of products to our customers. This innovation not only improves our bottom line but also strengthens our market position, ensuring we remain competitive and profitable in a challenging industry.
As always, I will keep you updated on our progress.
Regards
Pieter👋
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