AUSTRALIA - Australian bovine and ovine animal fat exports, predominantly tallow, in 2014 were just over 466,000 tonnes, up eight per cent year-on-year and the highest on records dating back to 1995 (ABS/GTA).
Meat and Livestock Australia said that shipments in 2014, valued at almost A$402 million, were driven by what is expected to be a record high beef and lamb production year.
Demand was mixed throughout the year.
During the first six months, Singapore was the market driver, taking on average over 80 per cent of Australian product, or about 28,000 tonnes per month, encouraged by US renewable fuel subsidies.
However, following a change in US policy, when a major Singaporean renewable fuel processor withdrew from the market mid-year, albeit momentarily, exports to Singapore declined to 4,000 tonnes in August.
While other markets, primarily Nigeria and Japan, emerged to take Australian product, prices declined, with domestic tallow (one per cent FFA) averaging A$653/tonne ex-works in August, back 35 per cent year-on-year.
While Singapore re-emerged and exports increased steadily through the back-half of 2014, export market share in the country, and the premium prices paid, have remained relatively low.
Other major markets in 2014 included China (74,034 tonnes), South Korea (31,021 tonnes) and Taiwan (30,870 tonnes).
In the latest MLA monthly co-product report, domestic Tallow (one per cent FFA) prices in January averaged $661/tonne ex-works, up five per cent on December, following lower supplies through the system over the Christmas break and a depreciating Australian dollar, but were 27 per cent below the renewable fuel subsidy induced prices of one year ago.
TheMeatSite News Desk