Co-product market report...Meat & Livestock Australia | Market Information – Co-product market...

mla.com.au

Co-product market reportAugust 2019

Beef Co-products

Price quoted is average price reported in $/kg FOB Australian port.

A v e r a g e (Jul Data) Range Responses Monthly Change Annual Change

Beef Lips $3.46 $1.00 4 -4.1% -8.3%Beef Lips - Halal $3.72 $0.40 3 -3.5% -5.3%

Cheekmeat $6.27 $5.00 3 6.0% 8.4%Cheekmeat - Halal $6.33 $4.80 3 -4.0% 11.1%

Hc Tripe $7.23 $4.90 3 -5.4% 5.0%Hc Tripe - Halal $6.85 2 -13.8% 14.9%

Headmeat $4.60 $1.10 3 10.8% 6.7%Headmeat - Halal $4.65 2 8.1% 8.1%

Heart $2.11 $0.75 4 -5.3% -5.7%Heart - Halal $2.25 $0.65 3 -4.3% -1.1%Heart - Aorta $7.95 2 2.6% 11.4%Ligamentum $1.74 $1.95 4 -11.5% -53.0%

Liver $1.24 $0.65 4 4.9% 12.5%Liver - Halal $1.42 $0.85 3 6.3% 14.5%

Lungs $1.33 $1.00 3 15.9% 56.9%Lungs - Halal $1.57 $0.70 3 30.6% 11.9%

Omasum $7.27 $4.20 3 -4.4% 12.5%Omasum - Halal $8.00 2 -5.9% 23.8%Rum.Pill < 500 $10.60 2 -10.4% 2.1%

Rum.Pill > 500 < 700 $20.90 2 -2.3% 24.9%Rum.Pill > 700 $23.40 2 -1.3% 16.5%

Tail $10.00 $3.00 4 4.3% 5.3%Tail - Halal $10.85 2 15.4% 16.0%Tendons $6.25 2 -11.3% -10.7%

Tendons - Halal $6.25 2 -8.1%Thickskirt $10.00 2 6.1% 44.1%Thinskirt $9.55 2 10.9% 66.4%

Tongue Root Meat $2.98 2 7.5% 19.0%Tongue Root Meat - Halal $2.98 2 4.4% 32.2%

Tongue SW $11.35 $5.20 4 -1.3% 17.3%Tongue SW - Halal $10.40 $4.20 3 -7.7% 22.8%

Tripe Pieces $3.45 $0.45 3 5.7% -2.8%Tripe Pieces - Halal $3.33 2 1.5% 1.1%

Table 1: Beef co-product prices

Beef offal prices were generally mixed across the products, with even gains and losses. Thick skirt and thin skirt rallied along with tails, however honeycomb tripe and omasum eased.

Meat & Livestock Australia | Market Information – Co-product market report – August 2019

Head offal

Beef offal trends

2

3

4

5

6

7

8

9$/kg FOB

Figure 2: Trends in beef tripe pricesHC Tripe Omasum Tripe PCS Omasum - Halal Tripe PCS - Halal

1

2

3

4

5

6

7

8

9$/kg FOB

Figure 1: Trends in beef head offal pricesBeef Lips Cheek Meat Head Meat Beef Lips - Halal

Prices for head offal products were firmer across the board this month. Head meat averaged $4.60/kg, firming 29¢/kg from year-ago prices and 45¢/kg above last month. Cheek meat was 49¢/kg dearer than year-ago levels, averaging $6.27/kg, an improvement of 36¢/kg from last month.

Lip export prices to the US and Mexico eased 15¢/kg month-on-month, to average $3.46/kg. Halal lips averaged $3.72/kg, back 13¢/kg from last month and down 21¢/kg from July 2018.

Omasum eased 33¢/kg from last month, to average $7.27/kg, up 81¢/kg from year-ago prices. Halal omasum averaged $8.00/kg, down 50¢/kg from last month but $1.54/kg stronger year-on-year. Halal tripe pieces firmed 5¢/kg from June to average $3.33/kg, up 4¢/kg from last year’s levels. Non-halal product gained 19¢/kg from last month’s prices, averaging $3.45/kg, but declined 10¢/kg on last year. Honeycomb tripe eased to average $7.23/kg, a decrease of 42¢/kg month-on-month to be 34¢/kg above July 2018 prices.


Beef offal trends continued...

0

1

2

3

4

5

6

7

8

9$/kg FOB

Figure 3: Trends in beef offal pricesHeart Heart - Aorta Heart - Halal

0.7

1.2

1.7

2.2

2.7

3.2$/kg FOB

Figure 4: Trends in beef offal pricesKidneys Lungs Lungs - Halal

Aorta averaged $7.95/kg for the month; which was 20¢/kg firmer from June, and 81¢/kg above year-ago levels.

Heart prices eased 12¢/kg from last month, averaging $2.11/kg, to be 13¢/kg below year-ago levels. Halal hearts averaged $2.25/kg, easing 10¢/kg month-on-month, and back 3¢/kg from July 2018.

Kidneys were again not reported, with some plants advising they were not packing them due to the weak demand.

Non-halal lungs were reported at $1.33/kg, 18¢/kg above last month. Halal lungs averaged $1.57/kg, gaining 37¢/kg from June, and even with year-ago prices.


Beef offal trends continued...

Japanese and Korean Offals

0.6

0.8

1.0

1.2

1.4

1.6

1.8

2.0$/kg FOB

Figure 5: Trends in beef offal pricesLiver Liver - Halal

0

5

10

15

20

25

30$/kg FOB

Figure 6: Trends in Japanese offal pricesRum Pillars > 700 Thickskirt Thinskirt Tongue SW

Liver prices averaged $1.24/kg, improving 6¢/kg month-on-month to be 14¢/kg above year-ago levels. Halal livers firmed 9¢/kg from last month’s price to average $1.42/kg, up 18¢/kg on July 2018 prices.

Tongue prices eased 15¢ from June to average $11.35/kg, to be $1.67/kg above year-ago levels.

Thick skirt was $3.06/kg higher year-on-year and 57¢/kg firmer than last month, averaging $10.00/kg. Thin skirt averaged $9.55/kg, an improvement of 94¢/kg from June and $3.81/kg above year-ago prices.

Rumen pillars remained firm, with heavy weight product averaging $23.40/kg, down 32¢/kg month-on-month but $3.32/kg dearer than July 2018 levels.


Tails and Tendons

Sheep Co-products

Price quoted is average price reported in $/kg FOB Australian port and runners as $/piece.

5.0

6.0

7.0

8.0

9.0

10.0

11.0

12.0$/kg FOB

Figure 7: Trends in tail and tendon pricesTail Tendon Tail -Halal


Heart Sheep - Halal $3.00 $0.80 3 9.1% 16.9%Kidneys Sheep - Halal $3.77 $2.10 3 0.4% 17.7%

Liver Sheep - Halal $1.67 $1.40 3 13.0% 21.2%Runners Lamb $3.75 2 -31.8%

Table 2: Sheep co-product prices

Tail prices to Korea improved 41¢/kg from last month, averaging $10.00/kg, to be 50¢/kg above year-ago levels. Halal tails averaged $10.85/kg, an increase of $1.45/kg from last month and $1.50/kg above year-ago prices. Tendons averaged $6.25/kg, easing 80¢/kg month-on-month.

Sheep offal prices were again poorly reported but showed improved results, while runners were finally reported again.


Sheep offal

0.0

1.0

2.0

3.0

4.0

5.0

6.0$/kg FOB

Figure 8: Trends in sheep offal prices

Sheep Heart Sheep Kidney Sheep Tripe Sheep Liver Sheep Tongue LC

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0$ piece

Figure 9: Trends in runner pricesLamb Runners Sheep Runners

Sheep hearts averaged $3.00/kg, up 25¢/kg month-on-month and 43¢/kg dearer than year-ago levels. Kidney prices returned $3.77/kg, an improvement of 57¢/kg from year ago levels and 2¢/kg firmer than June prices.

Sheep livers were 19¢/kg up month-on-month to average $1.67/kg, firming 29¢/kg from last year’s prices.

Sheep tripe averaged $3.70/kg up 13¢/kg year-on-year.

Long cut tongues were not reported.

Lamb runners returned $3.75/piece while sheep runners averaged $2.15/piece. While these prices are approximately half of what is regarded as normal levels, it shows some interest from the market.


Pharmaceutical products

Price quoted is average price reported in $/kg FOB Australian port and foetal blood $/litre EXW

150

200

250

300

350

400

450$/litre EXW

Figure 10: Trends for foetal blood prices

20

22

24

26

28

30

32

34

$/kg EXW

Figure 11: Trends for concentrated gall prices


Table 3: Pharmaceutical prices

Pharmaceutical products were not reported.


Rendered products

Price quoted is average price reported ex works$/tonne.

350

450

550

650

750

850

950

1050

1150$/tonne EXW

Figure 12: Trends in rendered co-product pricesBlood Meal 85 MBM 50 Tallow <1% FFA

Average (Jul Data) Range Responses Monthly Change Annual Change

Bloodmeal 85 $886.00 $160.00 5 3.4% 3.9%

MBM 50 $486.25 $100.00 4 16.7% -3.1%

MBM 50 Sheep $1,135.00 2 -50.7%

Tallow Ined.<1FFA $842.50 $35.00 4 6.5% 4.7%

Tallow Ined.<4FFA $802.50 2 5.4% 7.5%

Table 4: Rendered product prices

Rendered products were firmer across the board, with rendered meal prices rallying on expected lower production over the next two to three months, and buyers ensuring they have stock available.

The price for 50% protein MBM improved $69/tonne from last month, averaging $486/tonne, to be $16/tonne below July 2018 levels. Blood meal averaged $886/tonne, an increase of $34/tonne on last year’s price, and $29/tonne firmer month-on-month.

Tallow prices rallied, with the price for 1% FFA tallow averaging $842/tonne, up $51/tonne from June and $37/tonne above year-ago prices. Tallow is at a premium of approximately $170/tonne to palm stearin, due to demand from Singapore, China and the USA.


Hides

Price quoted is average price reported for ex works $/each.

0

10

20

30

40

50

60

$/kg FOB

Figure 13: Trends in hide prices (East Coast Ex Works)NSW Hides 281-350 Vic Hides 281-350 Qld TFA Hides 281-350 Qld Ticky Hides 281-350


Hides NSW 141- 180 $0.50 2 -71.4% -95.2%Hides NSW 181 - 220 $1.00 2 -66.7% -92.7%Hides NSW 221 - 280 $3.63 2 -23.7% -78.7%Hides NSW 281 - 350 $7.00 2 -22.2% -70.4%

Hides NSW 351 Up $11.00 2 -21.4% -64.1%Hides QLD TFA 221 - 280 $1.00 2 -33.3% -93.1%Hides QLD TFA 281 - 350 $4.67 $0.50 3 -15.2% -79.9%

Hides QLD TFA 351 Up $7.17 $2.00 3 -17.3% -73.8%Hides QLD Ticky 281 - 350 $2.67 $0.50 3 -28.9% -86.7%Hides QLD Ticky 350 Up $4.67 $0.50 3 -15.2% -80.1%

Hides VIC 141-180 $1.50 2 -50.0% -88.5%Hides VIC 181-220 $3.25 2 -45.8% -80.9%

Hides VIC 221 - 280 $7.25 2 -14.7% -67.0%Hides VIC 281-350 $11.00 2 -18.5% -62.1%Hides VIC 351 Up $17.00 2 -12.8% -56.4%

Table 5: Hide prices

The hide market continued to weaken further, with more product becoming of no commercial value. Poor demand for leather continued to make product difficult to sell.

Local prices for hides continued the downward trend across the market, with even heavier lower grade hides showing processors negative returns. Average prices eased a further $2.00/piece, with more grades now being worthless.


Market InformationMeat & Livestock AustraliaPh: 02 9463 9372Fax: 02 9463 9220Email: [email protected]/prices-markets

Published by Meat & Livestock Australia Limited ABN 39 081 678 364August 2019© Meat & Livestock Australia Limited 2017

Export statisticsTo access the latest co-products statistics please click here:

Please call Penny Graham on 02 9463 9137 or [email protected]

For more information:

MLA makes no representations as to the accuracy of any information or advice contained in this publication and excludes all liability, whether in contract, tort (including negligence or breach of statutory duty) or otherwise as a result of reliance by any person on such information or advice.

Free to MLA members Terms and Conditions

Currency exchange

0.680.690.700.710.720.730.740.750.760.770.780.790.80AUD/USD

Figure 14: AUD /USD Foriegn Exchange

This report is produced from a monthly MLA survey of approximately 25 processors across Australia, collating average prices and analysing trends on a range of co-products items

The Australian dollar finished marginally higher against the US dollar during July. The A$ opened the month at 69.94US¢ and increased to 70.65 US¢. It eased to close at 68.94US¢, averaging 69.87US¢ for July, an increase of 0.45US¢ month-on-month, and down 4.19US¢ from July 2018.

Source: Reserve Bank Australia


Co-product market report...Meat & Livestock Australia | Market Information – Co-product market...

Documents

Transcript of Co-product market report...Meat & Livestock Australia | Market Information – Co-product market...