Cost/benefit analysis

Detailed independant cost benefit studies have been completed in four plants, comparing the RTL beef boning unit, Proman aitch bone puller and the Teys knuckle puller to current manual boning operations.

In general, they confirm that every boning room, no matter how well operated, is likely to achieve considerable yield benefits.  Yield benefits are derived both from better separation and a reduction of yeild losses caused by fatigue.

NCMC RTL study

The first of these cost/benefit studies was carried out at NCMC, based on the installtion of eight RTL units, split between aitch bone and knuckle pulling functions.  The results of the study were:

"Benefits including yield gains, increasing the chain speed on the boning floor, a reduction in OH&S costs and benefits to the labour force related to a value gain of $5.17 per head. Increased costs and risk associated with the use of the equipment were calculated at $0.50 per head. This resulted in a net benefit of $4.65 per head. For a plant processing 269,000 carcasses per annum under these circumstances this resulted in a total (annual) gain of $1.22 million."

This provided a payback of 4.89 months and a NPV of $7,403,902 for this technology.

It should be noted that:

• There was approximately $1.18 per head yield benefit achieved by optimisation of the boning room functions around the RTL technology.  This may not be achievable in other plants.
• Not all plants will be able to increase chain speed and hence productivity.
• The study did not include yield benefits achieved by reducing labour fatigue during the shifts.  Other studies have shown that between 30-70% of yield improvements are due to this factor, and hence the yield benefits at NCMC may have been underestimated.

RTL/Proman/knuckle puller comparison

Detailed comparisons were made between the above technologies, with one plant installing an RTL aitch bone puller and a Teys knuckle puller.  This was compared to a Proman aitch bone puller and a Teys knuckle puller in a separate plant. The cost/benefit study confirmed similar benefits of around $3.50 per head existed.

It should be noted that:

• The Teys knuckle puller is less suitable for some animal types.
• Yield benefits for the RTL aitch bone puller was assumed to be the same as for the Proman system.  However, it is likely that the RTL unit may provide somewhat higher benefits, although this is unlikely to affect the already short payback from all of these technologies.