Tallow
Tallow is the substance derived from melting the harder and less fusible kinds of fats, and is used to make edible oils, frying fats and margarine, soap, industrial lubricants, candles, leather dressings and is used in the tanning industry.
Australian tallow production is tied to slaughter numbers, but is generally around 450,000-500,000 tonnes a year. Approximately 60% of total tallow production is exported. The main markets are China, Pakistan, South Africa and Taiwan . The US dominates the tallow industry, so all prices follow US market trends.
Meat meal
Meat meal includes co-product derived from edible or inedible components such as bone, hooves, horns, heads, feet etc. Bone is used in the production of fertiliser, glue, china and charcoal. Horns and hooves are used to make glue, fine lubricants and leather softener. Inedible offal and meat are used in the production of meat meal, an important feed for other industries.
Due to the uncertainty surrounding BSE in the later part of the 1990s there was a downturn in demand for ruminant protein meals, such as meatmeal, and apparently there are still some potential users hesitant to purchase these items.
Since October 1997 meat and bone meal has been banned as a feed additive to all ruminant animals.
Offal
Approximately $300 million worth of edible offal known as ‘fancy meats’ was exported during 1999/2000. Australia exports about 80% of its fancy meat production to premium markets throughout the world - Japan is the single largest export market.
Demand for Australian sheep offal is currently low, with few processors even keeping heads. Very few prices are generally quoted for sheep and lamb tongues, brains and lungs.
Not all offal produced by domestic processors is edible. Inedible offal may be exported, used in the rendering process, or turned into blood and bone fertiliser. Best returns are gained when inedible offal is on-sold to the pet food industry.
Cattle hides
Cattle hides are the most valuable beef co-product, accounting for 10-15% of an animal’s value. Although the Australian tanning industry is expanding, most hides are still exported in a preserved condition prior to tanning; the chief markets are Japan, China and Italy. However, the leather from hides are used in a number of ways such as clothing, shoes, saddles, sporting goods and furniture.
Sheep skins
Sheep and lamb skin prices are driven by export demand, which is currently weak, and supply, which is also low, due to the liquidation of sheep flocks.
Turkey and China have been the major markets in recent years because both countries produce and export goods manufactured from skins. Ultimately, demand for these goods — garments, footwear, seat covers drives the export price of skins.
Throughout 2001 MLA commissioned Tanwell International to conduct research into the Australian skins market.