Two Percent Drip Across 4,000 Tonnes: A Year-End Reconciliation Nobody Runs

Take a mid-sized red meat plant buying 4,000 tonnes of chilled and frozen product a year at an average 4.20 per kilo. Two percent drip loss is 80 tonnes. At purchase cost that is 336,000 of material that was paid for, received, chilled, handled and then poured into a tray. Most finance directors hav…