Processed meats are important because: 1. Opportunities for value-added products and improved marketing – palatability and convenience of products is critical – meat processing (red meat) adds 34.8% to value of raw materials(American Meat Institute) poultry meat processing adds 131.3%!!!(AMI) – these are finished product prices/cost of materials (not the whole story) Breakdown of Hog Packers’ and Packer/Processors’ Sales Dollar by Percent of Fresh Meat Sales Fresh Meat Sales as % of Total Sales Term >67% 33-67% <33% Total Sales 100.00% 100.00% 100.00% Livestock and/or Meat 81.32 75.42 60.24 Supplies & Containers 4.05 4.35 7.53 Production Labor 5.55 5.01 5.95 Cost of Goods Sold 90.92 84.78 73.72 Gross Margin 9.08 15.22 26.28 Other Wages and Salaries 1.69 3.29 5.32 Retirement Expense 0.02 0.35 0.03 Payroll Taxes 0.62 0.73 0.96 Insurance & Hospitalization 0.52 1.21 1.49 Vacation, Holiday & Sick Leave 0.45 0.50 0.56 All Other Benefits 0.18 0.10 0.13 Total Benefits 1.80 2.90 3.16 Employee Benefits: Interest 0.71 0.35 0.34 Depreciation 0.83 0.65 1.50 Rents 0.15 0.59 1.50 General & Administrative Insurance 0.56 0.16 0.13 Taxes* 0.10 0.12 0.27 All Other Expenses 3.14 6.11 10.41 Total Expenses 99.90 98.96 95.28 Earnings Before Taxes 0.10 1.04 4.72 Income Taxes 0.02 0.73 2.13 Net Earnings 0.08 0.31 2.59 Source: American Meat Institute Financial Operating Survey of the Meat Industry (Totals may not equal 100% due to rounding of numbers) 2. Great deal of science and technology involved: • • • • chemistry microbiology physics mathematics • • • • statistics engineering psychology sociology 3. Use information to solve problems: - great example in low-fat processed meats a. reduce fat ---- rubbery, hard frankfurters b. add water ---- purge c. water binders ---- dilute ---- increased spoilage d. flavoring agents e. antimicrobial compounds Beef Franks -12 ingredients Extra Lean Franks -18 ingredients 19 ingredients - Another example is water-added fresh meats(“moisture-enhanced”) • Salt, phosphate, lactate, diacetate • ~12% added water Natural and Organic market share • Growing rapidly • Command premium prices -sliced ham-water added (Jan, 2014) (same manufacturer) conventional - $3.99/lb. natural - $4.99/lb. (+25.1%) “Natural” (processed meats) definition: • “…does not contain any artificial flavor or flavoring, coloring ingredient, or chemical preservative…” (USDA Food Standards and Labeling Policy Book). -thus, nitrate and nitrite are not allowed • Currently under review-may be revised Organic products… • Governed by Organic Foods Production Act (1990)specific practices/substances • Products and ingredients must be certified organic (USDA) (95+%) and may use USDA organic seal • Meat must produced using organic management and from a certified farm • Ingredients in processed foods must be organic also (labels: “100% organic”, “organic” (95%) or “made with organic ingredients” (at least 70%) • Nitrate and nitrite are specifically prohibited • Neither “natural” nor “organic” -but still “uncured”… These products are labeled “Uncured”… …but they are actually cured! (contain curing agents, nitrite and nitrate). How is that possible? Why is it done? In the 1970s, nitrite was very controversial and was nearly banned. To allow processors to offer “typical” products without nitrite, USDA approved nitrite-free products but to make it clear that these are very different, USDA required that “Uncured” be added to the product name. Now…processors have developed natural sources of curing agents (primarily celery concentrates) for natural products (no preservatives allowed) but the old “uncured” regulation also applies because no curing agent is added. IMHO, for consumers, this is confusing at best and misleading at worst… AND…these products are actually LESS safe in terms of inhibiting bacterial pathogen growth… Clostridium botulinum-inoculation study Time until botulism toxin was detected during vacuumpacked storage of inoculated frankfurters and ham at various storage temperatures Inoculated frankfurters Products stored at: 22ºC/28 d. 10ºC/84 d. 4ºC/120 d. natural cure 5 days 14 days 63 days conventional cure 14 days none/84 d. none/120 d. natural cure conventional cure Inoculated hams 3 days 14 days none/120 d. none/28 d. none/84 d. none/120 d. Salt is a 4-letter word… • Human minimum dietary requirement is about 100-200 mg/day (1 teaspoon of salt = 2, 300 mg sodium) • Ave. consumption is 3,100+mg/day • Previous recommendation was 2,300 mg/day maximum, new recommendation is 1,500 mg/day maximum • 32% of Americans are hypertensive; another 33% are pre-hypertensive • Salt is essential in processed meats - Safety has become a major concern (“Safer” might be a better word choice.) -has resulted in many changes to assure safety -Listeria, E. coli 0157:H7 and allergens are major sources of meat industry recalls (75 total in 2013, 82 in 2012, 103 in 2011) -making progress! Example: new technology i.e. antimicrobial ingredients, irradiation, high pressure - “Fresher Under Pressure®”, etc. for ready-to-eat (RTE) meats - Listeria monocytogenes issue -equipment cost $500,000$2,000,000 -added product cost is $0.04$0.10/lb. -pressure treatment = 600 MPa (87,000 psi) The meat industry is making progress on RTE product safety but fresh meats such as ground beef (E. coli O157:H7) are still a challenge. – less opportunity to include inhibitory treatments – phage (viral predators) may offer a new option, several approved for use 4. Jobs / Careers: • meat as food • maintain/improve quality, guarantee safety, improve economics • industry is moving toward continuous control (Q.C., HACCP, etc.) from farms through to consumption (idiot-proofing the process) • understanding of protein functionality, spice flavors, thermal process calculations, packaging, laws and regulations, sanitation, shelf life studies, human sensory panels • develop new products! • graduate degrees are an excellent preparation – Ford Motor Co. is offering the Fiesta with bacon decals. “Drive down the road in a piece of bacon!” Iowa’s Blue Ribbon Bacon Festival • All general admission tickets and tables to the 7th Annual Blue Ribbon Bacon Festival – “Viva Las Bacon! What Happens at Baconfest…” officially sold out on 12/12/13. 12,000 tickets were snatched up in 42 minutes in the online only sale. Tickets were purchased in 41 states, and from as far away as Brazil, China, Denmark and Puerto Rico. • Viva Las Bacon Wedding packages are available. Each package includes general admission tickets to the festival. These packages are available until 5:00 p.m. Friday, January 3. • The event which will be held at the Iowa State Fairgrounds on Saturday, February 1, 2014 will pay homage to Las Vegas and one of its most famous bacon-lovers, Elvis Presley. 5. Become a more intelligent consumer Are you getting what you pay for (or what you want)? (Jan., 2014 prices) • Frankfurters Ballpark Beef Franks – $3.79/lb. Oscar Mayer Angus Uncured Beef Franks - $3.99/lb. (105%) Applegate Beef Franks(organic) - $7.49/lb. (198%) Vegetarian Franks - $5.59/lb. (147%) Bar S Franks (chicken/pork), $1.59 - on sale - $0.99 (26%) • Bacon Hormel bacon - $4.99/lb. Niman Natural (Uncured) - $6.88/lb. (138%) Hormel Microwave-Ready Bacon - $8.65/lb. (173%) Tyson Fully Cooked Bacon - $25.38/lb. (507%) ($3.49 per 2.2 oz. package) • Ham Ham with natural juices – $4.99/lb. Ham – water added - $3.99/lb. (-20%) Ham and water product - $2.79/lb. (-44%) Applegate Natural (Uncured) - $10.95/lb. (219%) Processed meats offer: 1. Variety – flavor, color, shape, appearance • more importantly ---- controlled variety, especially from non-meat ingredients 2. Consumer preference / popularity • In U.S. - 818 frankfurters are consumed per second. This is 2,454,000 during our 50 minute class period. 3. Value added • Upgrade low value fresh meat – major difference between fresh meat industry and processed meat industry. Processed meats are products of three things: 1. Raw meat materials i.e. lean beef, fat pork, mechanically deboned chicken - highly variable in composition and quality 2. Non-meat ingredients i.e. salt, spices, nitrite, soy proteins, smoke flavoring - provides uniqueness, controlled variety 3. Physical, mechanical “processes” i.e. grinding, chopping, tumbling, cooking, smoking, chilling Notice - that these three points are what comprise (with more specific details) your course syllabus Raw meat materials concerns: 1. Quality - freshness a. fat quality (rancidity) “a little goes a long way” – common meat specifications is a maximum TBA (thiobarbituric acid) number – must consider unfrozen vs. frozen meat b. microbiological – screening for both total numbers and specific organisms may be necessary c. Color and bind values – measures of performance to be expected of a meat ingredient when used 2. Composition • biggest problem is variability • initial concern in processing is for product formulation • proximate composition for lean muscle is fairly constant: – – – – water protein fat (ash 70% 20% 9% 1%) however, range is extreme Reasons why formulation control is important: 1. Economics – protein is expensive, fat is cheap, water is free (almost) 2. Quality - as perceived by consumers – fat and sugar sell products! 3. Regulations Examples: a. Fat content of frankfurters < 30% and sum of added water plus fat < 40% (added water is water content is excess of 4P (4 x protein content)) b. Cured pork products - i.e. hams PFF (protein fat free) content label (name) is determined by protein content on a fat-free basis i.e. > 20.5 % protein fat-free = “ham” 18.5 - 20.5 = “ham with natural juices” 17.0 - 18.5 = “ham - water added” < 17.0 = “ham and water product __% is added ingredients” c. Dried products M:P ( moisture : protein ) ratios required for product name dried beef 2.04:1 dry salami 1.9:1 pepperoni 1.6:1 jerky 0.75:1 fresh, lean meat is about 3.7:1 Safety depends on available water (Aw) values 4. Check on finished products – yields • economics • indication of change in materials or process 5. Competitors products – especially useful in product development 6. Evaluation of complaints, returned products, problems, failures