Gelatin vs Skin Emulsion

Scenario 1: Gelatin Production from Pork and Beef Skins (250kg Each/Day)

Process:

  1. Lime Treatment, Neutralization, Boiling, and Mincing.
  2. Daily Skin Processing: 250kg pork + 250kg beef = 500kg total.
  3. Yields: 37.5kg pork gelatin/day and 25kg beef gelatin/day.

Cost Breakdown (Per kg):

Cost Component Pork Gelatin Beef Gelatin Raw Material (Pork at R15/kg) R15/kg R7/kg Labor R6/kg R9/kg Electricity R5.33/kg R8/kg Other Costs (Citric, Lime) R10/kg R10/kg Total CostR36.33/kgR34/kg

Profit Calculation:

  • Pork Gelatin:
  • Revenue: R108 × 37.5kg = R4,050/day
  • Cost: R36.33 × 37.5kg = R1,362.38/day
  • Daily Profit: R2,687.62/day
  • Monthly Profit (22 days): R59,127.64/month
  • Beef Gelatin:
  • Revenue: R108 × 25kg = R2,700/day
  • Cost: R34 × 25kg = R850/day
  • Daily Profit: R1,850/day
  • Monthly Profit (22 days): R40,700/month

Total Gelatin Monthly Profit: R99,827.64/month

Scenario 2: Skin Emulsion Production from Pork and Beef Skins (250kg Each/Day, 1.5% Methyl Cellulose)

Process:

  1. Pork and Beef Skins processed with 0.5kg water per 1kg of skin, plus 1.5% methyl cellulose.
  2. Daily Skin Processing: 250kg pork + 250kg beef = 500kg total.
  3. Yields: 375kg pork emulsion and 375kg beef emulsion = 750kg total emulsion.

Cost Breakdown for Emulsion (Per kg):

Cost Component Pork Emulsion Beef Emulsion Raw Material (Pork at R15/kg) R15/kg R7/kg Methyl Cellulose (R250/kg, 1.5%) R3.75/kg R3.75/kg Total CostR18.75/kgR10.75/kg

Selling Price with 30% GP:

  • Pork Emulsion:
    Selling Price = 18.75 ÷ 0.7 = R26.79/kg
  • Beef Emulsion:
    Selling Price = 10.75 ÷ 0.7 = R15.36/kg

Profit Calculation:

  • Pork Emulsion:
  • Revenue: R26.79 × 375kg = R10,046.25/day
  • Cost: R18.75 × 375kg = R7,031.25/day
  • Daily Profit: R3,015/day
  • Monthly Profit (22 days): R66,330/month
  • Beef Emulsion:
  • Revenue: R15.36 × 375kg = R5,760/day
  • Cost: R10.75 × 375kg = R4,031.25/day
  • Daily Profit: R1,728.75/day
  • Monthly Profit (22 days): R38,032.50/month

Total Emulsion Monthly Profit: R104,362.50/month

Comparison of Profit:

Production TypeMonthly ProfitGelatin ProductionR99,827.64/monthSkin Emulsion ProductionR104,362.50/month

Conclusion:

With 1.5% methyl cellulose inclusion, skin emulsion production yields a slightly higher profit (R104,362.50/month) compared to gelatin production (R99,827.64/month).