Halal co-product margin narrows

15 June 2017

The final shipments of halal co-products destined for markets observing Ramadan were exported towards the end of April. Due to generally lower demand for halal products during Ramadan, a large proportion of these exports throughout May were diverted into typically non-halal markets.

Prices adjusted accordingly, with the difference between halal and uncertified product narrowing across most cuts during May.

One notable example was liver prices. Halal product was 13% dearer month-on-month, while non-halal liver jumped 31%, causing the difference to narrow to a 6¢/kg discount on halal certified product.

Halal tripe pieces in May settled 26¢ below non-halal tripe, while during April it sold at a 45¢/kg discount. The narrowing difference was driven by a 27% increase month-on-month in halal prices, while non-halal lifted only 18%.

Other halal products also sold closer to their non-certified counterparts in May:

  • Halal kidneys averaged $1.25, while non-halal kidneys made $1.21 – the 4¢ difference considerably lower than the 42¢/kg premium that halal kidneys were selling at the month previous
  • A 19% decrease in halal omasum prices and the same percentage increase in non-halal omasum saw what was a $2.53/kg halal premium in April decrease to 63¢/kg in May
  • Cheekmeat prices experienced a similar trend, with halal prices easing 5% to $7.43 and non-halal lifting 3%, averaging $7.52/kg. This resulted in halal product swinging from a 54¢ premium to an 8¢/kg discount in May.

For further information on current trends in the co-products market for both halal and non-halal products, please view the May report or subscribe by emailing marketinfo@mla.com.au

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