Abstract

Simple SummaryKoreans consume more pork meat among the various meats, and as the consumption of pork meat increases, the amount of slaughtering is also increasing. Accordingly, the Korean government is sizing up and modernizing slaughterhouses to expedite the slaughter and to increase the safety of livestock products. The labor-intensive slaughter industry is undergoing major changes due to the COVID-19 pandemic, which will speed up the automation of slaughterhouses. Various automation devices are also being introduced in Korea, and currently the Korean government is introducing a pork meat yield grading machine to increase the accuracy of judgments based on the increasing slaughter volume. However, because such equipment is quite expensive, it is not easy to introduce, and a detailed study on the utility of the related equipment and an economic feasibility analysis has not been conducted. Therefore, in this study, we tried to prove the validity of the introduction of the equipment through the effectiveness study and economic analysis of the automatic meat yield grading machine, and a plan to increase the economic effect was considered.Currently, the pork industry is incorporating in-line automation with the aim of increasing the slaughtered pork carcass throughput while monitoring quality and safety. In Korea, 21 parameters (such as back-fat thickness and carcass weight) are used for quality grading of pork carcasses. Recently, the VCS2000 system—an automatic meat yield grading machine system—was introduced to enhance grading efficiency and therefore increase pork carcass production. The VCS2000 system is able to predict pork carcass yield based on image analysis. This study also conducted an economic analysis of the system using a cost—benefit analysis. The subsection items of the cost-benefit analysis considered were net present value (NPV), internal rate of return (IRR), and benefit/cost ratio (BC ratio), and each method was verified through sensitivity analysis. For our analysis, the benefits were grouped into three categories: the benefits of reducing labor costs, the benefits of improving meat yield production, and the benefits of reducing pig feed consumption through optimization. The cost-benefit analysis of the system resulted in an NPV of approximately 615.6 million Korean won, an IRR of 13.52%, and a B/C ratio of 1.65.

Highlights

  • As the consumption of pork increases in Korea, the number of pigs raised and slaughtered is increasing

  • Indirect benefits from the VCS2000 system result from improving the quantity of lean meat percentage (LMP) and the consequent effect of reducing feed costs related to feeding and management

  • Producers can quickly respond to changes in global grain prices as they can check the effects on the amount of meat produced due to changes in feed stock when VCS2000 data is used for feeding and management

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Summary

Introduction

As the consumption of pork increases in Korea, the number of pigs raised and slaughtered is increasing. Many slaughterhouses globally currently employ the “on-the-rail system”, which aids in the continuous movement (linear and rotation) of the carcasses using electronic controls. This system has the ability to handle between 600 and 1000 carcasses per hour [3]. In the case of a scaled slaughterhouse, a pig carcass must be graded within 12 s based on 300 head/h and 9 s based on 400 head/h to handle the slaughter without delay [4]. The scale of slaughtering facilities leads to an increase in slaughter volume, which can increase the fatigue of judges and decrease the accuracy of measurement due to an increase in the number of carcasses.

Summary
Materials and Methods
Setting of Discount Rate
Cost Evaluation of Costs
Depreciation Cost Calculation
Evaluation of Benefits
Direct Benefit
Indirect Benefit
Results
Sensitivity Analysis
Economic Analysis Results
Sensitivity Analysis According to Slaughter Volume Change and Meat
Sensitivity Analysis by Stepwise Feed Price Change and Annual Slaughter
Future Directions
Conclusions
Full Text
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