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He means the Glukkons have probably been quietly slaughtering Mudokons in advance of announcing their new meat product, New ‘n’ Tasty. Which I think he is offering as a possible reason as to why “the biggest meat processing plant on Oddworld” originally only had 99 employees.
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Yeah. And bear in mind you can see posters for Mudokon Pops (not "New 'n' Tasty") in the later Zulags of RuptureFarms, a glowing billboard in Feeco. Depo, and there are barrels of the things scattered around SWHD. This was more than a proposal. This a was a product they had researched, developed, and put into mass production.
I know mulching your own staff is pretty desperate, but as the intro said, "profits were grim". They need a source of meat that's "already at hand" - something they don't need to go to any expense to find. By the end of the game Molluck orders every last worker in the factory killed, so he's not afraid of haemmoraging his workforce (literally in some cases). In fact, the way Abe intones "he ordered us
all killed" suggests that there's already some fraction of the employees being killed.
I expect, had Abe not intervened, the profits from the successful launch would have gone in part into getting some new Scrubs in, while the Pop stock would have been ordered seperately. But to begin with RF was implied to be on the verge of bankruptcy; desperate times, desperate measures etc. When you're out of money, all you have is your assets.
Quite how long they expected Muds to work butchering their kin is a whole other can of worms.
Alternatively, maybe all the other meat processing plants on Oddworld are really, really small.