July 8, 2010

Australian beef offal prices slow in June

 
Beef offal prices in Australia were flat in June, with weaker prices for higher yielding offal reportedly dragging overall prices down, Meat & Livestock Australia (MLA) reported.

The lower Australian currency gave some support to prices - averaging 85US¢ over the month, 7% 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. Offal exports to Korea in June rose 53% on-year to 2,067 tonnes swt, with large increases in both tail and tripe shipments, while exports rose 6% to 2,573 tonnes in Japan.

Halal offal prices were almost all weaker following the wider market down, with lips the only exception at US$2.09/kg. Halal hearts (US$1.28), kidneys (US$0.83), liver (US$1.03) and tripe (US$1.95) were all weaker, falling 21%, 20%, 5% and 4%, 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 8% to 592 tonnes swt. Livers averaged US$0.99/kg in June, 3% higher on-year, while kidneys fell 16% to US$0.71/kg.

Heart prices also declined in June, averaging 17% less than a year earlier at US$1/kg. Tripe prices averaged US$1.74/kg, 10% less than a year earlier, with congestion and hold-ups in a number of overseas ports such as Hong Kong reportedly affecting prices.