Cattle Co-Product Value Increase

AUSTRALIA - Cattle co-products look to be finishing the year on a high, with values surging to their highest level in over two years in November, underpinned by strong demand and lower supply for both edible offals and tallow.
calendar icon 7 December 2010
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Meat & Livestock Australia

The potential co-product values for Japanese steers reached $211/head in November, 21 per cent higher than a year earlier. Similarly, co-product values for Korean steers and US cows rose 18 per cent to $170/head and 17 per cent to $122/head. respectively (MLA's Monthly Co-products Monitor).

Increases in co-product values were primarily due to strong prices for tallow and offals - which surged on the back of particularly strong buying from Russia and Japan. Tallow prices were lifted by a buoyant fats and oils outlook in general, with 1 per cent FFA tallow averaging $953/tonne ex works, 39 per cent higher than a year earlier. Prices were also supported by tighter supply, with cattle slaughter in the eastern states continuing to be affected by high rainfall.

Average prices for both hides and meat and bone meal were slightly lower, with values impacted by the high A$, which averaged 99US¢ over the month (Infoscan).

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