Implementation of rendering cost model

Summary

A spreadsheet-based model for assessing the processing costs of rendering was developed in a previous MLA project. The model was implemented at five rendering plants to determine if it would assist in tracking and controlling costs. The plants estimated that their average processing costs were from $68 to $162 per tonne of rendered product. The lower costs in the range were reported by plants with continuous wet rendering systems. The costs at the low end of the range also included very low estimates of depreciation and interest. 

The plants did not change their cost structures during the course of the project. However, the model will show the affect of changes in cost structures by reporting costs per tonne of rendered product. One plant was able to recognise and correct a loss of yield from the section of model’s report that compares calculated with actual production. The model could be used more widely by the abattoir-based rendering sector. It provides more information than some of the in-house cost tracking systems observed during the project. Those
who do not track costs could use the model but should also be encouraged to develop their own cost tracking systems designed to suit their particular needs.