Tallow Boosts Co-product Values12 April 2013
AUSTRALIA - The potential co-product value of a prime steer with an average carcase weight of 274 kg during March increased by 10 per cent year-on-year, reaching $171.42/head, underpinned by stronger demand for tallow and hides according to Kurrajong Meat Technologies – March co-products monitor, Meat and Livestock Australia analysts report.
Competitive demand from Chinese oleochemical producers and Singaporean renewable fuel producers inflated the price of tallow in March to average $783.87/tonne ex works, equating to $41.12/head, a 12 per cent increase on February, although was back an eight per cent year-on-year.
Similarly, the price of hides rose significantly in March to $54.33/head, standing 24 per cent, or $10.66 above the March price last year.
Australian offal prices slipped in March on the back of a large drop in beef tongue prices, caused by increased competition from the US after access was granted to US cattle up to 30 Months of age.
Additionally, weaker demand for most offal items from Korea also contributed to the reduced offal price, although prices were assisted somewhat by increased demand from China and Hong Kong.
TheMeatSite News Desk