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Moving
Good Ideas to Something Useful
Because it is so easy to slip and divulge
information, we generally do not talk about our clients unless we have
cleared, in writing, exactly what we are going to say.
I can tell you about this one because it is mine and it did not work.
Scenario:
I
noticed a small squib in Michael Kesterton’s compendium of miscellany in
the Globe and Mail. It seems
the Falkland Islands (population about 3,500) also has a British Army base
of about 3,500 souls and a sheep population of about 600,000, of which
they slaughter and BURN, BURY or otherwise
dispose of 35,000 to 50,000 old animals per annum.
Burning
or burying 35,000 perfectly edible, albeit slightly old, animals seemed
not only wasteful, but costly, to me.
What could I do with 35,000 old but healthy sheep?
Surely there must be a way to pay the shepherd a dollar or two per
animal to bring in his sheep. Then he wouldn’t have the expense of
burning or burying it.
When
I spoke to the chief veterinarian for the Falklands about disease she
said, ”Hell no - we don’t even have hoof-rot.”
The British army ships in, on a monthly basis, a
boatload of supplies for the army base, INCLUDING MUTTON. Reason: there is no facility in the Falklands for butchering
according to European Common Market standards, and the British Army may
not be supplied with food that does not meet ECM standards. Note: the boat
from England goes back empty.
Aside
from air traffic from England, about the only visitors they get are
irregular tramp steamers from Argentina.
The Falklands primary, and almost only, source of income is from
the sale of wool (and salted hides) to Argentina, who is big enough in the
sheep world that the international wool buyers visit. That is why the
tramp steamers visit the Falklands, but irregularly.
When
I tried to get a quote for shipping frozen carcasses from the Falklands to
England, I was met with a refusal to quote, since England would not land
any meat that was not ECM butchered, and they knew the Falklands did not
have an ECM standard abattoir. I
was able to get around that by suggesting they were for trans-shipment.
(Mad cow disease was on everybody’s lips at that time).
Solution:
When I talked to the pet
food manufacturers they were more than willing to accept a secure
source of certified disease-free mutton, on a long-term contract. Probably
the price would have come in at about 20¢ per pound.
The existing Stanley Butchery could probably (with
some difficulty) handle the slaughter, skinning and gutting, only by use
of extra shifts. A quasi
joint venture type, lease to own arrangement was available from a freezer
manufacturer, to flash freeze the carcasses
Freezer, ocean going, containers were available.
Had it worked, I would have paid some minimal
amount to the shepherds, plus the costs of butchering and freezing, Plus
cheap shipping, plus the costs of a local to oversee my interests,
including paying the shepherd for his sheep, etc.
As each shipment was made, the local would bill the
pet food people, and insure payment was received. My involvement would be
strictly oversight. Making money while you sleep.
Outcome:
When
I talked to the governor of the Falkland Islands preparatory to bringing
up the subject of a contract for exclusive long term supply I found that
within the last 60 days the British government had authorized a budget to
build a ECM standard slaughtering plant.
Obviously
there was no long term exclusive contract available. Having
the government that makes the rules as your competitor is not fun.
Actually
the success ratio for these kind of deals is no more than 25%, but when
they work, they are nicely profitable.
Do you have a good idea that you haven’t taken
the time to follow up on? An anomaly?
Contact us
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