The state alchemists (The folks in Blue) are looking for Full Metal Alchemist Edward Elric (The titular character of the seires). They have word that he is in the village, and that brings them to this butcher shop. ( I forget exactly what lead them to this butcher shop. The butcher DOES know where Ed is.) The Butcher stonewalls the two state alchemists, due to a general distaste for the military, a sentiment shared by his wife. (Ed's mentor in alchemy.) Armstrong, (the state alchemist with the muscles) decides it would be efficent to bond with the butcher by showing him his muscles. (not the first or last time in the series armstrong has taken this approach.) It works, as the butcher shares Armstrong love of bodybuilding.