Japanese offal market improves

14 October 2015

As outlined in MLA’s monthly Co-product Market Report, most offal prices eased during September, however items destined for the Japanese market bucked the trend.

Japanese demand was supported by a lower A$ against the Yen, reduced tariffs under the Japan Australia Economic Partnership Agreement (JAEPA), and ongoing sales growth in the Yakiniku restaurant sector. The US – Australia’s largest competitor in the market – has also had reduced presence in Japan, with a much stronger currency and tight slaughter cattle supplies.

While total Australian beef and veal offal exports declined 2% year-on-year in September, shipments destined for Japan lifted 19% and were close to double on August levels, at 2,881 tonnes swt (DA).

  • Tongue exports to Japan were up 12% year-on-year, at 951 tonnes swt
  • Skirt exports increased 4%, to 845 tonnes swt
  • Intestines shipments were up 22%, at 369 tonnes swt
  • Tripe exports increased 16%, to 261 tonnes swt

Prices responded to increased demand, with most items destined for the market trending dearer.

  • Tongue (SW) averaged $10.86/kg, up 99¢/kg on August and $1.98/kg year-on-year
  • Thin and thick skirt both averaged $9.08/kg in September, up $2.84/kg and $3.02/kg year-on-year, respectively

Click here for the full Co-product Market Report.

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