Publication - Research and analysis

Mobile abattoirs - viability and sustainability: report

Published: 12 Mar 2020
From:
Director-General Economy
Directorate:
Environment and Forestry Directorate
Part of:
Farming and rural
ISBN:
9781839606076

The findings of a study carried out to determine whether or not mobile slaughter units (MSUs) would be viable in Scotland.

133 page PDF

1.6 MB

133 page PDF

1.6 MB

Contents
Mobile abattoirs - viability and sustainability: report
Appendix 5: Cost Benefit Analysis Data

133 page PDF

1.6 MB

Appendix 5: Cost Benefit Analysis Data

  • Scenario Data and Descriptions
  • Cost and value/price data
Table 26. Overview of the livestock slaughter data used in the CBA
Description of Logistics and Model Slaughter Days Orkney Caithness & Sutherland Ross & Cromarty
Days / Week Weeks pa Daily Throughput Daily Throughput Daily Throughput
Cattle Sheep Lambs Pigs Cattle Sheep Lambs Pigs Cattle Sheep Lambs Pigs
Ork + Caithness: Weekly Orkney
Mart on Monday, MSU arrives later afternoon. Slaughter on Tuesday, leave on Wed morning (6.30) ferry to Scrabster. Drive to C&S Location Wednesday. Slaughter Wed pm and/or Thursday. Friday, drive to base, clean-up and reconciliation work 2.0 48 7 10
Caithness & Sutherland
Area close to Wick A&NM (Mart) and/or Lairg Mart (latter only three days per year) 1.0 48 7 10
Ork + Caithness: Fortnightly on Orkney Orkney
Mart on Monday, MSU arrives later afternoon. Slaughter on Tuesday, leave on Wed morning (6.30) ferry to Scrabster. Drive to C&S Location Wednesday. Slaughter Wed pm and/or Thursday. Friday, drive to base, clean-up and reconciliation work 2.0 24 7 10
Caithness & Sutherland
Area close to Wick A&NM (Mart) and/or Lairg Mart (latter only three days per year) 1.0 24 7 10
When in Orkney, 1.0 day of slaughter in C&S, next week, no time in Orkney, 3 days when all in C&S 3.0 24 7 10
Ross & Cromarty + Caithness: Weekly Ross & Cromarty
1.0 day slaughter per week 1.0 48 7 10
Caithness and Sutherland
2.0 days slaughter per week 2.0 48 7 10

Calculations and Estimates used in the CBA

Compliance Costs

The results from the CBA are provided at the end of this section. Informing these costs is data and calculations, provided in the Excel spreadsheet accompanying this report. A number of the tables associated with this are provided in this section, to give additional clarity. The table headings indicate which element of the CBA that the data pertains to.

The following costs for veterinarian inspections for a function MSU, and to approve an MSU and its docking stations are determined from conversations with FSS and the APHA, and with reference to the charges specified in regulations and guidance:

  • FSS fees - “Guidance Charges for Official Controls Version 4.1 June 2018”
  • APHA fees – “The Animal By-Products and Pet Passport Fees (Scotland) 2018
Table 27. Summary of OV and MHI rates and the cost, after discounting, for the MSU.
Description Hourly Rate No. of Hours £ Day Rate
OV Cost - one hour 40.55 1 40.55
MHI - 6 hours 30.05 6 180.30
Day rate 220.85
Charge to MSU for first 1,000 animals is 15% of cost 15% £33.12
Charge to MSU for subsequent 4,000 animals is 30% of cost 30% £66.26
For CBA use mid-point of above 22.5% £49.69
Table 28. FSS – Indicative MSU and Docking Station Approval Process Cost - Based on Hourly Fee Rate
Task Hours £ Fee, inc expenses £ Totals
Desk-based work 4.00 64.51 258.04
Site visit - MSU 4.00 64.51 258.04
Site visit - docking station 3.50 65.51 229.29
Site visit - docking station 3.50 66.51 232.79
Site visit - docking station 3.50 67.51 236.29
Report 4.00 64.51 258.04
Total 1,472.48
Ongoing, annual veterinary audit 321.65
Table 29. APHA Approval Process Costs – for managing ABP waste
Task £ Fee, inc expenses £ Cost
Approval of MSU and docking stations 485 485
Annual/biennial visits 157 157
Data on Animal Liveweights, Carcases and Residual Items

The following data is used to assist calculations with respect to the following:

  • Waste management – the storage capacity required at docking stations plus the removal costs. It also allows consideration for the local management of Cat 3 stomache/intestine contents, which can be applied to land.
  • The quantity and value of premium meat sales can be calculated from the skeletal meat weight
  • Potential offal sales
Table 30. Split by weight of animals into carcase and residual items (including offal and gut content)
Species Liveweight Skeletal meat weight Total Residual Residual Split
Edible offal Hide/Skin Stomache / intestine contents SRM & other Cat 1 waste
Cattle 600 318 282 13 43 74 152
Sheep 42 20 22 1.2 4.5 5 11
Lambs 42 20 22 1.2 4.5 5 11
Pigs 101 76 25 2 0 0 23
Table 31. Split by weight of animals into carcase and residual items (including offal and gut content)
Animal Liveweight Skeletal meat weight Total Residual Residual Split (%s of Liveweight Animal)
Edible offal Hide/Skin Stomache / intestine contents SRM & other Cat 1 waste
Cattle 600 53% 47% 2% 7% 12% 25%
Sheep 42 48% 52% 3% 11% 12% 26%
Lambs 42 48% 52% 3% 11% 12% 26%
Pigs 101 75% 25% 2% 0% 0% 23%

The offal value shown in the following table is an estimate and is produced for one of the operating models and scenarios in the CBA.

Table 32. Split by weight of animals
Animal Offal Value for CBA, £/Kg Offal Value/Carcase
Cattle 0.50 6.50
Sheep 0.50 0.60
Lambs 0.50 0.60
Pigs 0.50 1.00
Added Value to Beef Sales on the Basis of Local Provenance – Facilitated by Having Local Kill Through an MSU

The following tables take Scottish Craft Butchers data (published in the Autumn 2019 Newsletter) and make estimates in terms of the value of beef and lamb products (such as fillet, sirloin steaks etc for beef). The CBA considers the additional sales premium that could be associated with such items, if sourced from local animals, and sold as such – this additional value is expressed as 5% and 10%, with the former used for this scenario in the CBA.

Table 33. Table showing value of Scotch beef cuts & potential for added value to carcases from selling product slaughtered and provided locally (premium, provenance, high value sales)
Scotch Beef 01/07/2019 Scottish Craft Butchers Data Estimate of Split in a carcase £ Value
p /Kg £ / Kg Kg %
Fillet steak 4316 43.16 6 2.0% 259
Sirloin steak 2953 29.53 13 4.3% 384
Rolled Rib Roast 2325 23.25 7.5 2.5% 174
Popeseye Steak 1855 18.55 7.5 2.5% 139
Topside 1544 15.44 25 8.3% 386
Round / Rump Steak 1485 14.85 7.5 2.5% 111
Shoulder Steak 1236 12.36 25 8.3% 309
Rolled Brisket 1165 11.65 8.5 2.8% 99
Boiling Beef Bone In 718 7.18 7.5 2.5% 54
Sub-total 107.5 36% 1,916

The same analysis of lamb products indicates that the average value of the cuts is £15.17. On the basis that the carcase weighs 20 Kg, this translates to £303.47 of lamb products for sale.

The table below summarises the added value that local/provenance sourced meat products could provide to a butcher’s business, through an MSU providing local kill services. The 5% premium is considered in two of the CBA scenarios/models.

Table 34. Potential added value for premium sales of beef & lamb products based on local provenance
Meat Product Mark-up % for local origin/provenance £ Added Value onto £1,916 Scotch Beef Products
Beef 5% 95.78
10% 191.56
Lamb 5% 15.17
10% 30.35
Generating Value for an MSU Service Through Avoided Haulage and Kill Costs

The models and scenarios used in the CBAs were described in Section 10.1. The avoided costs associated with these and used in the CBA are summarised in the following table.

Table 35. Avoided haul and kill costs used in CBA model/scenarios
Animals Avoided haul to Abattoir Avoided carcase haul from abattoir Avoided Kill Cost Avoided haul to Abattoir Avoided carcase haul from abattoir Avoided Kill Cost Avoided haul to Abattoir Avoided carcase haul from abattoir Avoided Kill Cost
Orkney (weekly) and Caithness Orkney (fortnightly) and Caithness Mainland/Caithness and Sutherland
Cattle £45.00 £45.00 £87.50 £33.75 £33.75 £87.50 £30.00 £30.00 £87.50
Sheep £30.00 £30.00 £22.00 £18.75 £18.75 £22.00 £15.00 £15.00 £26.00
Lambs £30.00 £30.00 £22.00 £18.75 £18.75 £22.00 £15.00 £15.00 £26.00
Pigs £37.50 £37.50 £40.00 £26.25 £26.25 £40.00 £22.50 £22.50 £50.00
Waste Management Costs

Discussions with ABP collectors have resulted in a range of costs for the collection of the MSU’s waste streams. A summary of the key data from these discussions is shown in the table below.

Table 36. Summary of potential prices for MSU waste stream collections.
Description Collectors’ Costs Comments
Cat 1, 2 and 3 ABP cost in remote areas £90.00/T Charged for mixed Cat 1, 2 and 3 ABP waste, in a 11-tonne load/vehicle - therefore costing circa £1,000 for a full load.
Butchers’ Cat 2 waste £120/T Tonnage cost based on £30/240L bin
Mixed Cat 1, 2 % 3 - circa 5 tonne uplift – north mainland £170.90/T/Wk Cost for an 18-tonne vehicle to Wick, one day round trip, scheduled ~£750
Mixed Cat 1, 2 & 3 - circa 5 tonne uplift - Orkney £455.80/T/Wk Cost for an 18-tonne vehicle to Orkney, two-day round trip, scheduled £2,000

A collector currently charges £30/uplift for butchers' waste, in 240-litre bins (this is Cat 2). They could collect Euro containers (1,100 litre) from docking station sites, winched onto a 18-tonne wagon If traveling to somewhere like Wick to collect 4 to 5 tonnes – using 10 x 1,100 litre Euro-containers. The cost could be based on the trip, rather than a charge per bin or tonne. The cost, for indicative purposes is likely to not exceed £1,000 per day (would be a maximum, worst case), and likely to be more than £500 – a mid-range of £750 per haul therefore used in the table. The cost for Orkney would be double, and more, including ferry costs. They take the hides off fallen stock, then mix all the categories of ABPs collected - no discount for separated wastes therefore no value in separated Cat 1, 2 and 3 collections. All of such waste is mixed before being shipped south. The most effective way to reduce waste costs will be to do so at source. The costs used for managing waste streams at the docking stations is summarised in the table below.

Table 37. ABP waste stream costs used in the CBA scenarios
Scenarios Tonnes/week Per Site £ Cost for Orkney collection Per Tonne £ Cost for Caithness collection Per Tonne £ Average or Value to Use
Orkney (weekly) and Caithness waste 4.40 455.80 170.90 313.40
Orkney (fortnightly) and Caithness waste 4.40 455.80 170.90 242.10
Caithness and Sutherland 4.40 455.80 170.90 170.90
Hides and skins

The Sustainable Food Trust, in an October 2018 briefing paper[49] to the UK parliament indicated the following position, in terms of hides and skins value:

“The price of hides and skins has plummeted in recent years. More research is needed to establish all the reasons for this. Small abattoirs are currently being paid only 20p per sheep skin (c/w £6 a few years ago) and sometimes charged to have them taken away. Cattle hide prices have fallen to £14 each, with some as low as £4.50. In the 1980s abattoirs received £20 per hide and in 2014 they were paid over £30.”

The above information has been discussed with an ABP and fallen stock collector and confirmed to still be the case. The following values are therefore used in the CBA:

  • Cattle hides: £4.50 each
  • Sheep skins: £0.00 each (may be sold for as low as £0.20, assumed to work out at £0.00)
MSU and Chill Capital Costs

Earlier in the report a number of MSU designs were provided for slaughtering different species, using a range of configurations. The capital equipment cost for one tractor and trailer provided by Kometos Finnmodules is used in the CBA, with 67% of the budget price provided being used. This estimate is based on a price being provided for a two-trailer configuration, one of which provided chill facilities for carcases, which is not required in the docking station model. A cost for two chilling units, one at each of the docking stations, is used in the CBA. The capital costs used in the CBA are as summarised in the table below.

Table 38. Description of the capital costs used in the CBA
Capex Description £ Cost
Waste Containers -13,160
Docking station 1 - 20 containers (10 on site, 10 off site)
Docking station 2 - 20 containers (10 on site, 10 off site)
Tractor And Trailer Cost (Kometos) -618,227
Chill Costs -130,000
Docking station 1
Docking station 2
Contingency – 10% Of Capex -76,139
Total -837,526

Contact

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