Fats, oils and molasses inspection procedures require that each delivery be sampled and checked for ‘off-odours’, proper colour, excess water, and/or improper texture as given in the Standards for Receiving Liquids and Fats. Inspect fats and oils for impurities by placing a sample portion in a graduated cylinder to determine the actual percentage. If impurities exceed 0.05%, reject the delivery; notify the proper feedlot personnel and record the results as required in the Receiving Non-conformance Report for all feedstuffs. Record the results of all deliveries approved for purchase on the Ingredient Receival Record Meals and Other Feedstuffs. Deliveries of fats and oils which fall out-of-range but are deemed suitable to be fed may be discounted on price as outlined below.

Assume a 20T delivery of Yellow Tallow at a contract price of $150.00/T, was guaranteed at 98% TFM (minimum Total Fatty Matter) and 2% MIU (maximum Moisture, Insoluble and Unsaponifable matter). However, actual analysis shows a TFM of 88% with 8% M (moisture) plus 4% I (insoluble matter) and U (unsaponifiable matter). Thus the TFM deficiency equals 10 percentage units (98 - 88 = 10) while M is 6 percentage units over the guarantee and I and U are 2 percentage units over the guarantee.