November 16, 2007

Weak Australian beef offal prices in October

Beef offal prices in October were below the same time last year as lower values for offal were largely influenced by the stronger Australian dollar, according to Meat and Livestock Australia.

Japanese offal prices continued to slide, with tongue values averaging $1.34 below last year, at $14.26/kg. Values for high and low weight range rumen pillars dropped $2.68 and 89¢, respectively, to $5.57/kg and $15.82/kg. Tongue prices are expected to be firm, as consumer demand strengthens towards Christmas and New Year.

High supply of thick skirts and thin skirts affected prices during October, values were down $1.42 and $1.41, respectively, to $5.30 and $5.44/kg. Cheek meat prices averaged 51¢ below October 2006, at $3.21/kg, while the value for tails lifted 83¢, at $6.54/kg.

Demand for halal beef offal in Indonesia was mixed, with prices of some offal items pressured by the stronger A$. The prices of halal beef hearts averaged 56¢ lower than last year, at $1.53/kg, while the value for halal beef tails increased 59¢, to $6.33/kg. Non-halal beef liver prices were 41¢ below last year, at $1.72/kg. With continuing strong demand from Hong Kong and Korea, the value of tripe pieces averaged 51¢ above the same time last year, at $2.13/kg.

Demand for Australian beef offal is seen stronger in the near future due to restricted market access for US products into major markets, and a general demand for offal as a substitute for low valued chicken, following anticipated reduced supply in world markets.