Australia-Drop in offal prices.

AUSTRALIA-Offal values fall


Australian offal values generally declined further over the first quarter of 2009 in response to demand falling away in key markets and the continuation of credit difficulties in Russia, China and Malaysia. The slowdown in buying forced exporters to pursue lower value markets and utilise edible offal in rendering operations and in pet food (Kurrajong Meat Technology).

Prices for Japanese offal suffered, with customer traffic into restaurants down. Rumen pillars averaged A$6.33/kg for the quarter – down 52% on the same period last year, while tongue meat prices fell 59% over the year to 94¢/kg for the quarter. Korea remained quiet over the quarter, with exports of thick and thin skirts to this market down 44% (to 448 tonnes), tails 54% lower (549 tonnes) and tripe down 75% (150 tonnes) compared to the previous year.

Volumes to Russia suffered with liver exports for the quarter falling 32% to 2,329 tonnes, as credit problems continued. The price of livers declined 25% over the period to average $1.06/kg, a trend which was replicated for halal product.

In contrast, the price of tripe pieces rose 14% to $2.37/kg over the year and honeycomb tripe increased by 10%, mainly thanks to strong demand from Hong Kong – where shipments of tripe for the quarter rose 62% to 5,008 tonnes. Liver exports were also strong, particularly to South Africa (a more price sensitive market), where liver shipments rose 573% year-on-year to 1,292 tonnes swt for the quarter. South Africa also saw an increase in beef heart shipments, up 23% to 1,118 tonnes.