Ranching Supply Sample Proposal
Opportunity to Sell Meat to the Military
It has come to my attention that we may have an opportunity to sell meat to the local military warehouse. This could mean a substantial increase in our production and sales, and also offer a more stable and predictable future. I’ve discussed this opportunity in the following pages.
I’d like to pursue the matter further as soon as I have your approval to do so. WKC Meat Packers should be getting into the military meat-supply market to offer our company greater sales and greater stability. There is a large military warehouse and distribution center less than 50 miles away from our plant. This facility warehouses and ships mostly food items, including beef, pork, and chicken products.
The military has recently asked for proposals to supply more meat to their distribution centers. This represents a substantial opportunity for our company. Process and Sell Our Current Surplus of Beef and Pork We have offers of more livestock than we can currently process.
Selling to the military would benefit our company and our local farmers. Establish a Long-Term Relationship with the Military We know that our current surplus of supply will not last indefinitely. By establishing a long-term contract with the military, we can more effectively plan for future processing and have greater stability within our company, keeping our valued employees busy and avoiding the costs of layoffs and rehires. Gain a share of the new military jerky replacement market.
The military has partnered with one of our local companies, Dryz Food Products, to create a new, healthier, long-lasting meat product to replace jerky. They plan to use this new product in their MREs supplied to troops on the move. Dryz is currently developing recipes and processes to produce rolled-up dried beef, pork, turkey, and fish.
We should look into forming a partnership with Dryz to supply meat for their new process. Getting into the military meat-supply market will offer our company greater sales and greater stability. As you know, local ranchers are currently selling more livestock than usual due to several years of drought and low feed situations. Because of this, there is a surplus of beef in particular in our area, and we are actually turning away beef and pork suppliers because we don’t have sufficient orders from stores.
In summary, at the current time, supply is greater than demand among the American public. We can process and ship excess supplies to commercial freezers, but we also have a large market in the nearby military warehouse that we have not yet tapped for both fresh and frozen meats. Selling beef and pork to the military would benefit not only our company and our employees, but also local farmers and the military. WKC Meat Packers will realize the following benefits provided by selling meat to the military.
We currently operate at only about 75% of capacity because we don’t have sufficient orders to fill. Selling to the military could increase our production to full capacity.
Jobs are in short supply in our area. If we operated at full capacity, we would need to hire 25% more workers. Create a stable and dependable number of monthly orders.
Our current grocery store clients tend to order seasonally and sporadically. The military needs a steady of supply of all sorts of meats. Doing business with them could smooth out the ups and downs of our current production cycle. Increase sales for local ranchers.
Our ranchers are currently offering us more beef and pork than we have customers for. The military would absorb this current surplus and create a bigger market for the future. Provide our servicemen and women with quality meat products. Our military deserves only the finest and we can supply fresh, quality beef and pork.
There seems to be no downside to doing business with the military. The meat cuts wanted by the military fall into the following categories. Steaks, ribs, roasts, and ground beef and pork.
The military also has very strict guidelines on packaging in specific numbers and weights with appropriate labels and documentation. We would need to adapt our current process to meet the military specifications as follows. Separate different cuts into group packages—for example, 25 steaks in one package—instead of packaging each cut separately as we now do.
Wrap group packages in heavy duty plastic wrap. Label packages as dictated on the military supply site. Note that they use bar codes on labels that we would have to incorporate into our label printing system. Maintain records of origin, processing dates, storage dates, temperature, etc.
Store fresh packages in the meat locker at 39 degrees until pickup by transport; and frozen packages at 30 degrees. If not frozen, storage must be less than 36 hours. If frozen, storage can be up to 60 hours.
Ship all records of origin, processing, and transport along with packaged meat to the military warehouse. Our normal shipper, Ice Cold Transport Inc., does not typically include the military warehouse on its standard delivery route. However, we could pay ICTI to add the military warehouse to their route, or look into using one of the following two trucking companies.
Tuxon Transport This company trucks produce for the military warehouse from wholesalers in our area, passing very close to our plant. Their fleet includes refrigerated trucks that could be used to transport meat. Jon Frost Trucking This is a brand-new company in our area. Jon owns three trucks, two of which are refrigerated.
If we contract with him, we would be supporting our neighbor in his new business venture. We do not currently have a plan for shipping meat to the military warehouse and distribution center. However, we have several options and could no doubt come to a satisfactory arrangement with one of the three companies mentioned above.