Questions & Answers
from "On Ice Cream" featured in Dairy Foods magazine
and sourced from "On Ice Cream" technical short courses.

Ingredients Cost Savings:

Question: What is more impactful, ingredient cost savings, yield improvements, or reduction in finished product losses?

Answer: Certainly ingredient cost savings can deliver ongoing cost efficiencies. However, do not forget finished product lossses, and yield improvements that can deliver additional savings to the bottom line. In fact, anything that reduces finished product losses and increases yields many times can equal, or superior, cost savings to ingredient cost savings alone. That's an effective doubling (or more) of cost savings opportunities. That is because each gallon of finished frozen dessert carries with it elements of ingredient, labor, overhead, capitalization, packaging, and other fixed or variable costs. By reducing losses and increasing yields, cost per finished gallon can be reduced. Add to this the element of regained margin at point-of-sale by producing more saleable product, and more than just significant savings can be returned to the business. Do not ignore ingredient cost savings, but look deep beyond ingredient costs for additional impact by manufacturing more saleable product.