Australian beef offal exports to Japan continue to grow

24 May 2016

According to the latest edition of MLA’s monthly Co-product report, Australian beef offal export volumes to Japan have continued to increase in 2016 so far, with April volumes up 10% on the previous month, to 2,250 tonnes swt, although shipments were down 5% from year-ago levels.

Ongoing sales growth in the Yakiniku restaurant (Japanese barbeque style restaurant) sector contributed to growing demand for offal in Japan. The reduced tariff for Australian offal exports, in accordance to the Japan Australia Economic Partnership Agreement, assisted Australia’s competitive position in the market, as production in the US (Australia’s largest competitor) increases.

In April:

  • Intestine exports increased 3% month-on-month, to 257 tonnes swt, but were 10% lower year-on-year.
  • Tongue shipments reached 831 tonnes swt, up 22% from March and only marginally lower than the corresponding month last year.
  • 223 tonnes swt of rumen pillars were exported during April, which was well above last month (up 24%), but down 16% year-on-year.
  • Skirt exports declined 9% on the previous month and 11% year-on-year. Thin skirt shipments registered the greatest decline, back 17% from March and 22% year-on-year, to 380 tonnes swt. Thick skirt volumes increased from both last month and year-ago levels, to 239 tonnes swt.

Beef offal prices, on items destined for Japan, also lifted from those reported in March and remained stronger year-on-year, aided by the A$ easing 1% from the previous month’s average and 9% year-on-year against the Japanese Yen.

In April:

  • Tongue prices reached $13.68/kg FOB, lifting 4% on March and 65% on April last year.
  • Thin skirt prices were up 5% month-on-month and 47% year-on-year, to $9.57/kg FOB, while thick skirt prices were similar to the previous month but 30% dearer than the same time last year, on $8.68/kg FOB.
  • Prices for heavy rumen pillars were 5% higher than March, on $8.73/kg FOB, but dropped 22% year-on-year, to $2.52/kg FOB.

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