Offal to Indonesia jumps with shift in import policy

19 April 2016

First quarter offal exports to Indonesia increased more than seven-fold year-on-year, to 3,050 tonnes swt, following the expansion of approved offal cuts.

In contrast, total first quarter beef offal exports declined 14% year-on-year, to 32,024 tonnes swt, underpinned by a similar magnitude reduction in cattle slaughter over the same period.

In particular, first quarter beef offal exports to:

  • Hong Kong were up 1% year-on-year, at 5,353 tonnes swt
  • Japan were back 20%, at 4,824 tonnes swt
  • South Africa were back 34%, at 3,067 tonnes swt

In December 2015, Indonesia expanded the list of approved imported products to include more offal items, such as tongue root meat and lips, in addition to a handful of secondary, prime and manufacturing beef cuts. With the shift in policy, first quarter offal export volumes were back in line with where they were at the beginning of 2014.

As highlighted in the latest edition of the monthly MLA co-product market report, offal prices were mostly firm to slightly softer in February and March. However, tongue root meat (halal), the primary item exported to Indonesia since the policy change, averaged $1.90/kg in February, up 19% from the previous month and 27% year-on-year. Tongue root meat quotes were limited in March, due to Easter break disruptions, but prices appear to have continued to dearer trend.

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