Offal exports lift

Deteriorating seasonal conditions during winter have seen Australian weekly cattle and sheep slaughter remain above year-ago levels since June and May, respectively. Increased turn-off has led to a higher level of production and, in turn, greater volumes offal exported for the month of August.

Beef

Beef offal shipments equated to 13,594 tonnes swt for the month, up 30% from the same time last year and 4% higher than shipments in July.

The largest volume was to Indonesia, with 2,508 tonnes swt exported over the month. This was almost double the tonnage shipped in August 2016 and consisted predominantly of manufacturing cuts, tongue, lips, lungs and heart.

Increased availability of Australian product saw volumes to Korea jump 34% from year-ago levels, with 2,289 tonnes swt exported in August. Greater consignments of skirt, intestines and cheek meat accounted for the increase.

Exports to Japan totalled 2,038 tonnes swt for August, increasing 21% from the corresponding period last year and 3% month-on-month. Shipments were largely made up of skirt and tongue cuts – underpinned by strong demand from the Yakiniku sector – however included larger volumes of tripe and intestines.

Shipments to both Hong Kong and South Africa also grew in August. Volumes to Hong Kong lifted 26% year-on-year, to 1,909 tonnes swt, while 1,428 tonnes swt were shipped to South Africa, more than doubling last year’s levels.

Sheepmeat

A total of 2,624 tonnes swt of sheepmeat offal was exported in August, 14% higher than year-ago levels.

The largest volume of sheepmeat offal for the month was shipped to Hong Kong, at 918 tonnes swt, representing an increase of 28% year-on-year and mostly consisted of tripe (907 tonnes swt).

In contrast, shipments to Saudi Arabia (the second largest market in terms of volume for August) declined 35% from August 2016, totalling 476 tonnes swt – underpinned by lower volumes of liver.

A reduction in liver shipments to Saudi Arabia coincided with greater volumes shipped to South Africa, the primary sheepmeat offal product exported to that destination. Total volumes doubled, lifting to 261 tonnes swt.

Shipments to Papua New Guinea lifted 8% year-on-year to 232 tonnes swt, with a greater volume of hearts exported.

For more information on exports please view Market Information’s export summaries or alternatively for a market update, keep an eye out for the latest Co-product Report, due for release later this week.