Beef Offal Prices Flat In June

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Beef Offal Prices Flat In June

08 July 2010

AUSTRALIA - Beef offal prices were flat in June, with weaker prices for higher yielding offal reportedly dragging overall prices down (MLA's Monthly Co-products Monitor). The lower A$ gave some support to prices - averaging 85US¢ over the month, seven per cent less than the beginning of the year - but not enough to prevent overall returns slipping.

Korean and Japanese offal prices tended to be weaker over the month, despite much larger volumes of beef offal reaching each market, according to Meat and Livestock Australia.

Offal exports to Korea in June rose 53 per cent year-on-year to 2,067 tonnes swt, with large increases in both tail and tripe shipments, while exports rose six per cent to 2,573 tonnes in Japan. Swiss-cut tongues averaged $10.30/kg, 22 per cent less year-on-year, while rumen pillars (500-700gms) fell two per cent to $5.81/kg. Tendons averaged 24 per cent lower at $4.22/kg, while thickskirt ($3.94/kg) and thin skirt prices ($4.04) were flat.

Halal offal prices were almost all weaker following the wider market down, with lips the only exception at $2.39/kg. Halal hearts ($1.47), kidneys ($0.95), liver ($1.18) and tripe ($2.23) were all weaker, falling 21 per cent, 20 per cent, five per cent and four per cent, respectively, over the month. Halal prices should find support in coming months, as Ramadam approaches in August, and importers seek to build stocks.

Liver and heart prices reportedly suffered from weaker demand in Russia, where offal exports fell eight per cent to 592 tonnes swt. Livers averaged $1.13/kg in June, three per cent higher year-on-year, while kidneys fell 16 per cent to $0.81/kg. Heart prices also declined in June, averaging 17 per cent less than a year earlier at $1.31/kg. Tripe prices averaged $1.99/kg, 10 per cent less than a year earlier, with congestion and hold-ups in a number of overseas ports such as Hong Kong reportedly affecting prices.

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