Recent orders
ABP Post Graduate Diploma In Business Management
ABP Post Graduate Diploma In Business Management
1.0 Introduction
This report identifies and critically evaluates the costing techniques used by Morrison and the role of such costing techniques in setting prices. The report will also analyse the last three years of the financial statements of the company to evaluate its performance and recommend possible ways to improve the financial performance of the company. Lastly, the report will cover a flexible budget for the actual production of 48,300 units in a small hypothetical electronics company called Safety First Limited, calculate the variances between the flexed budget for 48,300 units and the actual costs for 48,300 units, write an email to the Finance Director Mr. Mike Kenny, evaluating the budget out turns and reasons for these variations and then offer recommendations on how the company’s cost control activities could be improved.
2.0 Company Profile
Morrison Supermarkets PLC is the fourth largest retail chain in the United Kingdom, headquartered in Bradford, West Yorkshire. The company forms part of the FTSE 100 Index of companies with a market share of around 12 percent after Tesco (31 percent), Asda (17 percent), and Sainsbury’s (16 percent). The company started as an egg butter outlet back in 1899 but today it has over 450 outlets across the UK. Its current market share was however, boosted in 2004 when it acquired Safeway (Carollo, 2012). Today the company sells thousands of brands under the “own brand” banner. Some of these own brands include M Savers for all range of low-cost products, M Kitchen for all range of kitchen products, NuMe for all range of health products, and VM Morrison for all range of high-end products (Morrison, 2012).
Over the last three years, the company has however experienced a 0.2 percent drop in market share while the other three largest retail chains expected Tesco have experienced a growth of almost the same margin. This was a time when the market grew by about 4.5 percent, with smaller retail chains such as Waitrose registering huge gains perhaps due to the increasing perception that high-end retail chains are for high-end customers while low-end retail chains are for low-end customers who form the greatest portion of the UK grocers (Carollo, 2012). Again this could be because low-end retail chains tend to open up stores near neighbourhoods unlike high-end retail chains which target customers with cars.
The company registered one of the strongest financial performances in recent years in the 2011/12 financial year – a 7 percent growth in sales (£17.7billion), 8 percent growth in EBIT (£947 million), and a Net debt of £1,471million. This shows the company has been utilizing sound costing techniques especially in creating high returns on equity and reduction of unnecessary costs (Morrison, 2012). Morrison was selected to be the case study for this report because of its ability to achieve huge profits (as shown above) in a highly competitive and unpredictable industry where small players are slowly winning the hearts of the consumers.
3.0 Costing Techniques Employed by Morrison
Morrison utilises the activity-based costing technique. The company utilises this costing technique because it is flexible and allows managers to reduce redundancy by eliminating costly processes in favour of efficient and cheaper ones. Activity-based costing is in line with the company mission to create value for its customers and employees (Morrison, 2012). Though complex, the technique can be broken down into two broad steps. The first step entails the identification of cost drivers (activities) involved during the production of a commodity. The second step entails the assigning of costs (indirect and direct) to each specific activity. A combination of these two steps gives a manager an opportunity to set a reasonable and responsive commodity price while factoring in past, current and future cost indicators (Kaplan & Anderson, 2007).
For instance, when calculating the costs of say, pork, a manager should allocate all direct and indirect costs incurred in acquiring the product in two different pools/stages. The first pool will comprise of distinct sections (the number will be determined by the activities involved) such as procurement, acceptance, processing, delivering, packaging, as well as shelving. The second pool should include the actual cost drivers for each of the specified activities. Such costs should be calculated based on past, prevailing, and future indicators such as the average costs of labour for slicing and packaging pork into one kilogramme packages or even the average costs of transporting pork from the farm to the store. Here, the manager can decide to split the costs into major categories, say, direct and indirect costs. The bottom line is that the cost of every activity (cost drivers) should be clearly established and noted for costing (Baker, 1998).
3.1 Role of the Activity-based Costing Technique
The activity-based costing technique helps Morrison to keep its costs of selling at manageable levels. According to Sibun and Hall (2008), retail chains employ activity-based costing technique when entering into contracts with supplies of critical supplies such as groceries. In fact, when it comes to choosing suppliers, the retail chains try as much as possible to get the lowest bargain so as to keep the cost of selling at relatively low levels compared to their competitors. As it will be demonstrated in the financial analysis section below, Morrison has succeeded in keeping its profitability at low and stable levels because the activity-based costing technique makes it easy to predict costs and therefore make the necessary plans for less costly alternatives.
The activity-based costing also helps Morrison to make future strategic plans. Recent industry statistics show a decrease in consumer purchasing power yet the costs of manufacturing has escalated. This has made it hard for prices of critical household commodities to remain low. To mitigate this adverse scenario, retail chains always look for the best deal so as to keep their shelf prices at relatively low levels. An activity-based costing enables retail chains to approach each product line independently as determined by the cost of producing it (Baker, 1998). At Morrison, for example, the activity-based costing helps the company to distinguish between commodities for both high-end and low-end – M Savers versus VM Morrison.
By using an activity-based costing technique, Morrison gets an opportunity to set responsive prices for its products as well as to constantly review its product prices in order to make align with the prevailing economic standards. This is in line with the company mission to be a unique grocer that delivers to its customer’s fresh, high quality, accessible, and affordable groceries. Specifically, the company believes its futuristic strategy is based on its clear view of the future of the retail industry (Morrison, 2012). Arguably, such clear view of the industry cannot be achieved without getting a clear glimpse of the trends of key cost drivers.
2.0 Analysis of Financial Performance of the Company in the Last Three Years
2.1 Profitability
Profitability 2012 2011 2010
Morrison
GP 6.9% 7.0% 6.9%
NP 3.9% 3.8% 3.9%
ROCE 9.7% 9.7 % 9.4%
ROE 12.8% 11.7% 12.1%
Tesco
GP 6.1% 6.4% 6.1%
NP 4.4% 4.4% 4.1%
ROCE 13.3% 12.9% 12.1%
ROE 15.81% 16.07% 15.91%
Morrison has a “healthy” GP that beats the industry leader, Tesco for the three years but it has a smaller NP than Tesco for the same period of time as the table above shows. Even so, Tesco seems to enjoy strong and stable profitability than Morrison given, its GP has the smallest change for the three years. This is an indicator that Morrison costing techniques are not as efficient as Tesco’s.
Again, Morrison does not perform well in managing costs of sourcing capital given its low NP during the three years – Tesco score well on this front too. Since Morrison has low ROCE and ROE ratios than Tesco it can also be argued that the company does not fare well in investing its capital – its investing activities yield more expenses perhaps because it is in a period of laying down a strong foundation for competing with Tesco, Asda, and Sainsbury’s.
2.2 Liquidity Ratio
Liquidity 2012 2011 2010
Morrison
Current Ratio 0.57 0.55 0.51
Acid Ratio 0.24 0.24 0.24
Tesco
Current Ratio 0.67 0.68 0.71
Acid Ratio 0.48 0.50 0.54
Though most retail chains have liquidity ratios of less than 1 as they tend to rely more on inventories in cushioning short-term debt, it is clear that Tesco beats Morrison in paying its short-term debts – as it has a relatively higher current ratio and acid ratios when compared to the case of Morrison as shown above in the table. Nevertheless, Morrison has a more stable liquidity ration than Tesco, an indicator that the company relies on long term than short term financing and that it in deficit of short term assets and liabilities.
2.3 Asset Management
Asset Management 2012 2011 2010
Morrison
Stock Turnover 21.67days 24.03days 24.87days
Asset Turnover 3.27 3.04 3.1
Tesco
Stock Turnover 16.48days 17.50days 19.17 days
Asset Turnover 3.67 3.69 3.87
Morrison converts its stock at a slower rate than the industry leader, Tesco. Tesco seems to be improving its rate of converting stock, moving from 19.17 days in 2009 to 16.48 days in 2012 compared to Morrison which seems to have a stable but slower stock conversion rate, at 24.87 days in 2009 and 21.67 days in 2012.
Again, Morrison scores low in terms of converting assets into revenue, at 3.1 in 2009 and 3.27 in 2012 when compared to Tesco, at 3.87 in 2009 and 3.67 in 2012. Nevertheless, Morrison rate of converting assets into revenue has improved while Tesco has experienced a reducing asset conversion rate. Morrison long-term strategic plan seems to be slowly yielding fruits.
2.4 Gearing Ratio
Gearing 2012 2011 2010
Morrison
Debt Ratio 27.25% 15.07% 18.67%
Interest Cover ratio 33.58 times 30.13 times 18.51 times
Tesco
Debt Ratio 38.41% 40.85% 54.0%
Interest Cover ratio 16.54 times 11.76 times 11.09 times
Debt Ratio 38.41% 40.85% 54.0%
Morrison gearing ratio can be described as future-oriented in nature when compared to the case of Tesco. They are future-oriented because they portray a company that is keen to keep its short-term liabilities at low levels while relying much on long-term funding. Nevertheless, this situation can be interpreted to indicate that the company relies so much on its inventories to cushion its short-term debts as the higher interest cover ratio indicates when compared to Tesco.
2.5 Investment Ratio
Investment 2012 2011 2010
Morrison
Dividend pay-out ratio 1.6% 1.5% 0.9%
Dividend per share 10.70p 9.60p 8.20p
Earnings Per share 78.31p 70.36p 65.67p
Price/earnings ratio 11.40 11.60 14.10
Tesco
Dividend pay-out ratio 0.5% 0.5% 0.6%
Dividend per share 14.76p 14.46p 13.05p
Earnings Per share 110.91p 105.13p 90.32p
Price/earnings ratio 8.50 11.10 13.20
Compared to Tesco, Morrison has registered low dividends per share for the last three years, yet it has a higher dividend pay-out ratio than Tesco. This situation can be interpreted to mean that Morrison has lower net income, earnings per share and price earnings ratio than Tesco – these are all indicators that Morrison offers a lower value to its shareholders than Tesco. Even so, both companies can be described as stable investments whose actual value is in the long-term rather than short-term.
3.0 Hypothetical Company Costing
3.1 Flexible Budget for the Actual Production of 48,300 Units
Actual Budget Variance
Materials £410,550 £361,776.7 (£48,773.4)
Labour £320,800 £331,386.4 £10 586.4
Overheads £346,430 £339654.5 (£6,775.5)
Fixed costs £200,000 £200,000 0
Total costs £1,277,780 £1,232,817.6 (£44,962.4)
3.2 Variances between the Flexed Budget and the Actual Costs
Variance for material costs = £410,550 – £361,776.7 = (£48,773.4)
Variance for labour costs = £320,800 – £331,386.4 = £10,586.4
Variance for overheads costs = £436,430 – £339654.5 = (£6,775.5)
3.3 Evaluation of the Budget
From: HYPERLINK “mailto:financeassistant@safetyfirst.co.ke/” financeassistant@safetyfirst.co.ke/
To: HYPERLINK “mailto:financedirector-kenny@safetyfirst.co.ke/” financedirector-kenny@safetyfirst.co.ke/
Subject: Evaluation of the Budget for Producing 48,300 units of Secure
Dear Mr. Kenny,
I am writing to respond to the attached flexible budget. The overall cost for producing 48,300 units of Secure is £1,232,817.6. This is actually a favourable variation given the actual cost for the same was £1,277,780.0. It is a favourable variation because the overall cost has reduced by £44,962.4. The favourable variation can be broken down as follows: Materials costs reduced by £48,773.4; Labour costs increased by £10,586.4, and; Overheads costs reduced by £6,775.5. As expected, the fixed costs did not change.
This is actually a good situation for the company given it has succeeded in reducing production costs and that it can use the £44,962.5 for other productive activities such as increasing the number of units of Secure it produces. However, the company needs to work on reducing the labour costs as they have increased when other costs were on downward trend. For instance, the company should consider hiring fewer employees who are more qualified – those with necessary skills in operating high-tech equipments. The company can still consider sourcing less costly materials as well as durable office equipments to reduce on overhead costs.
It is my hope that the budget captures the actual situation at the ground and that it reflects the set financial goals of the company. I will be looking forward to making any additional interpretation of the flexible budget if required.
Yours sincerely
XXXXX XXXX
Finance Assistant
References
Baker, J.J. (1998). Activity-Based Costing and Activity-Based Management for Health Care. Aspen Publishing, Inc.
Carollo, B. (2012). Audit Report for Wm Morrison Supermarkets PLC. Scholarly Research Paper. Grin Verlag.
Kaplan, R.S. & Anderson, S.R. (2007). Time-Driven Activity-Based Costing: A Simpler and More Powerful Path to higher profits. Boston, MA: Harvard Business School Publishing.
Morrison PLC (2012). Annual report and financial statements 2011/12. Wm Morrison Supermarkets PLC.
Sibun, J. & Hall, J. (27 April 2008). Supermarkets & suppliers: Inside the price war. Available at: HYPERLINK “http://www.telegraph.co.uk/finance/newsbysector/retailandconsumer/2789020/Supermarkets-and-suppliers-Inside-the-price-war.html/” http://www.telegraph.co.uk/finance/newsbysector/retailandconsumer/2789020/Supermarkets-and-suppliers-Inside-the-price-war.html/ (accessed 13 July, 2012).
How can these results be reconciled
(Name)
(Instructors’ name)
(Course)
(Date)
Lecture 1
How can these results be reconciled?
Which of the following explanations do you regard as being most likely and why?
The mode of action of secretin from American dogs is different from that in English dogs.
Normally secretin evokes a pancreatic secretion rich in enzymes and in bicarbonate, but the procedure used by the English workers altered its characteristics to such an extent that its enzyme stimulating properties were inhibited
The secretin preparation SI in fact contained 2 hormones: secretin and another (now known as CCK-PZ). CCK-PZ stimulates the secretion of enzymes hence the secretion resulting from the SI injection contains enzymes and bicarbonate. M contains only one hormone, secretin, responsible for the production of a secretion rich in bicarbonate but poor in enzymes.
M contains two hormones. One of them, secretin, stimulates bicarbonate secretion and another unnamed hormone inhibits the release of enzymes from the pancreas. SI contains only one hormone, secretin, which stimulates the release of both bicarbonate and enzymes from the pancreas.
The most likely explanation of the difference in results is the second which postulates that the procedure used by the English researchers altered the characteristics of the hormone so much to the extent that it inhibited its triggering capacities to lead to production of little enzymes. Usually, secretin triggers the production of pancreatic juices rich in bicarbonate and enzyme (Bayliss and Starling 325-53). The fact the English researchers could not extract a hormone with the same abilities only means that the resulting enzyme had diminished activity as a result of some alteration during extraction (Hacki 609- 32).
Lecture 2
How do you think we can measure the resting potential of a neuron?
In a number of cells, the membrane potential is never constant. As it follows, there is never any resting potential and it is usually a theory. However, other cells containing little functions in membrane transport that change less frequently have a resting potential that one can measure by putting or inserting an electrode inside the cell. One can also measure the potential optically using dyes that alter their colours according to the potential of the membrane.
Draw a simple diagram to illustrate your explanation.
(Caldwell and Keynes 12-13).
What is the typical value of the resting potential of a neuron (give units)?
The resting potential of a neuron has a typical value of between -70 millivolts to -80 millivolts (Wright 139- 142).
The charged particles that are responsible for the RMP are called ions:
The positive ion is called the potassium and sodium ions
The negative ion is called the p-, chloride ions
Generation of the Resting Membrane Potential
Effect of K+ on the RMP
ICF
ECF
K+
Concentration gradient for K+
K+
P-
P-
Label the concentration gradient for movement of K+ across the membrane
What happens to the P-? Label this on the diagram.
A potential will now exist across the membrane: label this on the diagram.
Label the electrical gradient for movement of K+ across the membrane.
Effect of Na+ on the RMP
ICF
ECF
Concentration gradient for Na+
Electrical gradient
Na+
Na+
Cl-
_ +
Na+
Label the concentration gradient for movement of Na+ across the membrane
Excess Cl- will be left outside the cell; label the potential difference that now exists across the plasma membrane
Label the electrical gradient for movement of Na+ across the membrane
Calculating the equilibrium potential
Calculate the equilibrium potential for K+ and Na+
EK = Potassium ion== 26.6 In 0.03
= -40.43
ENa = Sodium ion =
26.6 In 156/13
=26.6 In 12
=26.6 x 1.08
=28.7
The real situation: the effect of K+ and Na+ combined:
P-
K+
ICF
ECF
Na+
Label the concentration gradient for K+ (K+ attempts to establish EK)
Label the concentration gradient for Na+ (Na+ attempts to establish ENa
Why is the resulting resting membrane potential of –70mV much closer to EK than ENa?
Because Ek is more and tending to drag the resting membrane potential towards itself (Hartline and Colman 25- 35). Even though most membranes are not that permeable to these ions, the resting membrane is usually more permeable to potassium ions than sodium ions (Wright 139- 142).
At the RMP neither K+ nor Na+ is at equilibrium, therefore they will continue to diffuse down their concentration gradients. After a period of time, the RMP would be dissipated.
How is this prevented in the cell?
The membranes solve this by having an active transport mechanism that actively transports potassium to the inside and sodium ions to the outside. Hence the tendency of these ions to diffuse down the gradient is counterbalanced by the sodium, potassium ion pump, transporting the ions against their concentration gradients (Huxley 479- 95).
The Chloride ion (Cl-) is the principal extracellular anion. It has an ECl of –70mV, which is the same as the RMP
How is Cl- distributed in the cell?
Chloride ions are usually more concentrated outside the cells or extracellularly. Just like sodium ions. The higher concentration outside cells of sodium ions is usually counterbalanced by the high concentration of chloride ions outside the cell (Zoidi and Dermietzel 137-42).
The concentrations of ions in the ECF compartments of a skeletal muscle fibre are given below:
Ion Concentration (mM/L)
ECF ICF
Na+ 156 13
Cl- 130 9.5
Ca2+ 1 0.1
K+ 5 160
Calculate the equilibrium potentials for each ion:
Sodium ion =
26.6 In 156/13
=26.6 In 12
=26.6 x 1.08
=28.7
Chloride ion=26.6 In 130/9.5
26.6 In 13.7
=30.32
Calcium ion= 26.6 In 10
=26.6
Potassium ion== 26.6 In 0.03
= -40.43
Lecture 3
What are the primary determinants of serum osmolality?
Sodium salts like bicarbonates and chlorides, urea and glucose.
If serum glucose increases, what will happen to serum osmolality?
It increase
If serum osmolality increases what will happen to the ICF?
It shifts its fluids towards ECF
As fluid shifts out of the ICF and into the ECF, what will happen to the serum?
It becomes more concentrated
If water is lost in excess of electrolytes, what will happen to the serum osmolality?
It increases
What is the estimated serum osmolality for the above example?
>850mOsm/Kg
g. What is the calculated osmolality for the above example?
855mOsm/Kg
h. How do these figures compare to the laboratory value? Why do you think they are slightly different?
They are higher than the laboratory value. This is because in a laboratory setting the loss of water can be controlled (Estad 1085- 6).
Example Two.
If a substance such as mannitol is added to the ECF, what will happen to its osmolality?
It increases
If very little enters the ICF, what will happen initially to the osmolality of the ICF?
It will increase
There is now a concentration difference between the two compartments. Remember that the two compartments are separated by a semi-permeable membrane that allows the movement of water. In which direction will the water move?
Towards the ECF compartment
Can you think of a clinical situation where these properties of mannitol could be life-saving?
In cases where lungs become filled with water
Lecture 4
Question 1: A man with normal lungs and a right to left shunt is found at catheterization to have an O2 concentration in his arterial and mixed venous blood of 18 and 14ml O2/100ml blood. If oxygen concentration of blood leaving the pulmonary capillaries is calculated to be 20mlO2/100ml blood, how large is the shunt?
Question 2. A patient whose arterial PO2 and PCO2 values are both 40mmHg when breathing air PO2 150mmHg, has a marked ventilation perfusion inequality but no shunt. On measuring his CO2 produced at rest it was found to be 240ml/min and his O2 consumption was found to be 300ml/min. Taking the correction factor for the alveolar gas equation to be 2mmHg, calculate the degree of his ventilation perfusion inequality.
Lecture 5
Question 1. For the control period, mark on the figure on page 3:-
the baseline
the amplitude of contractions
the frequency of the contractions
Question 2. What properties of the muscle do these measurements correspond to?
Work as syncytium, larger sheets, and have bridges with low resistance.
Question 3. Calibrate the tension of the preparation and complete the table below.
Calibration of tension: 1mm = g
Normal Saline Control ACh
(50ng/ml) Control NAd
(50ng/ml) Control
Resting Tone (g) 0 0.8 0 0.4 0
Amplitude (g) 0 0.9 0 0.5 0
Frequency
(per minute) 0 1 1 1 0
Atropine
(50ng/ml) Control ACh
(50ng/ml) ACh
(500ng/ml) Control NAd
(50ng/ml)
Resting Tone (g) 0 0.5 0.7 0 0.2
Amplitude (g) 0 0.7 0.8 0 0.2
Frequency
(per minute) 0 1 2 0 1
Question 4. Do ACh and NAd affect all three measurements i.e. baseline, amplitude and frequency of contractions? If so, do they affect them in the same way?
No.
Question 5. Using the information about Atropine, explain the results and deduce the possible sites of action of ACh and NAd in the preparation.
Question 6. What conclusion can you draw about the origin of the spontaneous activity and the way in which it is modified in the jejunum?
Lecture 7
If the plasma concentration of a substance X is 200mg/100ml and the GFR is 125ml/min, what is the filtered load of the substance?
200/100
=2
2 x 125
=250mg/ml
Practice Calculation 2.
A good example of a substance like A is a polysaccharide called insulin. Suppose you want to measure GFR in a human subject. A reasonable procedure would be to infuse the subject intravenously with a solution of insulin that is enough to give you a plasma concentration of 3.9mg/litre. Over a two hour period, you manage to collect 0.3L of urine from your subject and after measuring the concentration of insulin in that urine sample, you find that you have a urine concentration of 351mg/litre. What is your subject’s GFR? What are its units?
3.9 x0.3 = 351 x GFR
1.17= 351 GFR
= 0.003
Practice Example 3.
If the urine concentration of a substance is 7.5mg/ml of urine, its plasma concentration is 0.2mg/ml of plasma, and the urine flow rate is 2ml/min, what is the clearance rate of the substance?
`7.5/2= 3.75
3.75/0.2
=18.75
Practice Example 4.
A patient is found to have a urine creatinine concentration of 196mg/ml: plasma concentration that equals 1.4mg/ml: and a urine flow that equals 1ml/min. what is the clearance of creatinine?
196/1.4
=140mg/min
Complete the following Table:
You can find the value for Tm from the glucose titration curve above. It corresponds to the rate at which glucose reabsorption starts to plateau. Read off the value from the Movement of glucose axis. (Clue: the value is 300, 350, 375 or 400 mg/min? Which is it?)
Plasma Concentration (mg/100ml) GFR
(ml/min) Filtered Load
(mg/min) Tm
(mg/min) Amount
Reabsorbed
(mg/min) Amount
Excreted
(mg/min)
80 125 80 80 375 0
100 125 100 100 375 0
200 125 200 200 370 0
300 125 300 300 340 20
400 125 400 400 375 50
500 125 500 500 375 200
It is 375
Practise Example 5.
In 1 hour, 54 ml of urine are collected from a test subject. The concentration of PAH in the plasma is 0.02mg/ml and in the urine it is 14mg/ml. Haematocrit value is 43% (o.45 as a fraction). What is the effective renal blood flow?
54/1-0.45
54/0.55
= 98.18
Lecture 8
Assess the validity of each of the five hypotheses (I-V) by commenting on the information in the figure and tables. Deal with each of the hypotheses in turn and state clearly why it is refuted or supported by the data provided…. Either partially or fully. Try to think of other experiments that could be done to test each hypothesis.
Hypothesis I: The buccal cavity itself does not play a major role in digestion and absorption
This hypothesis is supported by the experiments and it is true because its units of hydrolysis are low, its absorption is low and because it is mostly made up of complex muscles that do not have any absorption abilities.
Hypothesis II: The oesophagus does not play a major role in the digestion and absorption. The major function is propulsion of food into the stomach
This is also true because its absorption ability is low and because it is mainly composed of circular and longitudinal muscles on its walls used for pushing food downwards.
Hypothesis III: the main role of the stomach is digestion. No absorption of the products of digestion occurs in the stomach.
This is true because it mostly has muscle fibres as its main components and goblet and parietal cells for digestion.
Hypothesis IV: The most important region for the absorption of products of digestion is the intestine, and no enzymes are produced here
This is true because absorption is made possible by villi, internal folding and epithelial cells for absorption. The little enzymes are as a result of less goblet cell.
Hypothesis V: The colon plays no major role in digestion or absorption; its main function is removal of water and storage of faeces.
This is true because it has thin walls that cannot allow for absorption or digestion because of lack of muscles.
Work cited
Bayliss, W. and Starling, H. “The mechanism of pancreatic secretion”. J. Physiol. 28 (1902): 325–353. Print.
Caldwell, C. and Keynes, D. “The utilization of phosphate bond energy for sodium extrusion from giant axons”. J. Physiol. (London) 137.1 (1957): 12–13P. Print.
Erstad, L. “Osmolality and osmolarity: narrowing the terminology gap.” Pharmacotherapy 23. 9 (2003): 1085–6. Print.
Garcia, A. et al. “The Oxygen Concentrations Delivered by Different Oxygen Therapy Systems”. Chest Meeting 128.4 (2009): 389S–390S. Print.
Häcki, H. “Secretin”. Clin Gastroenterol 9.3 (1980): 609–32. Print.
Hartline, K. and Colman, R. “Rapid conduction and the evolution of giant axons and myelinated fibers”. Curr. Biol. 17.1 (2007): R29–R35. Print.
Huxley, A. and Stämpfli, R. “Direct determination of membrane resting potential and action potential in single myelinated nerve fibers”. Journal of Physiology 112. 3-4 (1949): 476–95. Print.
Patarinski, D. “Indications and contraindications for oxygen therapy of respiratoryinsufficiency”. Vŭtreshni bolesti 15.4 (1976): 44–50. Print.
Wright, H. Advances in Physiology Education, 28. 1-4 (2004): 139-142. Print.
Zoidl, G. and Dermietzel, R. “On the search for the electrical synapse: a glimpse at the future”. Cell Tissue Res. 310. 2(2002): 137–42. Print.
The truth about JAY-Z & Beyoncé’s vegan diet recommendation
The truth about JAY-Z & Beyoncé’s vegan diet recommendation
BEEF MAGAZINE
Emerging trends from plant-based companies, celebrities and activists are putting greater pressures on the animal agricultural industry.
Amanda Radke | Jan 04, 2019
Not to sound alarmist to the meat-loving crowd, but many are predicting that 2019 will be the “Year of the Vegan.”
In fact, John Parker for The Economist claims that one in four Americans in the ages between 25 and 34 years old consider themselves to be vegans.
What’s more, Davide Banis for Forbes claims that “ending animal farming, or substantially reducing it, would indeed bring huge benefits to the planet, our health and the lives of the 56 billion animals slaughtered every year for meat consumption.”
Of course, the industry is contending with emerging alternative proteins such as cell cultured proteins and plant-based protein patties.
Then there’s a new company from the Netherlands called The Vegetarian Butcher, which aims to become the “largest butcher in the world” while making plant-based meats “the standard.”
Yes, really.
On top of all this, you have some of the biggest celebrities on the planet endorsing a vegan diet. Most recently, JAY-Z & Beyoncé have challenged their fans to join in their vegan journey in 2019.
The musical powerhouse couple wrote an introduction for Marco Borges’ (Beyoncé’s personal trainer) new book, “The Greenprint: Plant-Based Diet, Best Body, Better World.”
The duo says, “Having children has changed our lives more than anything else. We used to think of health as a diet—some worked for us, some didn’t. Once we looked at health as the truth, instead of a diet, it became a mission for us to share that truth and lifestyle with as many people as possible.”
They add, “We all have a responsibility to stand up for our health and the health of the planet. Let’s take this stand together. Let’s spread the truth. Let’s make this mission a movement. Let’s become ‘the Greenprint.’”
Are you nauseous yet? I must admit I am.
To be clear, it’s not that I care if people abstain from eating animal fats and proteins.
Quite frankly, it’s none of my business.
Well, actually as a beef producer, I guess it is my business to sell beef, and I have no qualms about my bias when I’m promoting the nutritional, environmental and ethical benefits of eating beef.
When Beyoncé and JAY-Z talk about veganism as “truth,” like it’s some sort of religion, cult or the “only” way we should be eating, that’s when warning bells start to ring in my head.
This “truth” ignores an overwhelming amount of science to the contrary. In fact, no society in the history of our planet has proven that a vegan diet is healthy or sustainable for the long term and from generation to generation.
However, it’s important to note that many civilizations in our history — Inuit and North American natives come to mind — who have thrived largely on meat-based diets. Think seal blubber and whales in the Arctic and bison and other wild game on the Northern Plains.
What’s more, I worry that if plant-based becomes “the truth” or “the standard,” our freedom of choice will be taken away. Sin taxes will be slapped on beef. The government’s nutritional guidelines will reflect plant-based recommendations. Regulations will burden producers until it’s no longer feasible to operate. Consumers will place great burdens on companies to move to plant-based menus. The list goes on and on…
I don’t mean to sound doom and gloom, but I write this to wake us all up. We’ve got a real challenge headed our way, and the threat to our way of life and our freedom of choice is tangible and growing larger each day.
I’ve been writing about consumer trends on this blog for 10-plus years now, and never before have I seen the movement as strong as I’ve seen it at this point.
However, the one thing that reassures me that beef cattle producers will still be relevant in the years to come is this — Americans consumed record amounts of meat in —a whopping 218 pounds per capita, according to the National Chicken Council. Of that, 57 pounds was beef.
Beef demand is stronger than ever. Our export markets are incredible. People love our product and are willing to pay for it. It tastes great, and despite the abundance of misinformation out there, it’s good for us and good for the planet, too.
If this issue isn’t on your radar in 2019, you better peak out from underneath the rock you’re hiding under. It’s never been more important than right now to share the positive word about beef with our consumers. Let’s get to work, everybody. Only collectively can we make a difference!
The opinions of Amanda Radke are not necessarily those of beefmagazine.com or Farm Progress.