Co-product market report

Transcription

1 Co-product market report June 2018 mla.com.au

2

3 Beef Co-products Beef offal prices continued to firm across most items compared with last month supported by the weakening Australian dollar, improving the return to works. Rumen pillars remain very firm. Halal omasum and livers were easier for the same period. Table 1: Beef co-product prices Average (May Data) Range Responses Monthly Change Annual Change Beef Lips $ % -30.8% Beef Lips - Halal $4.08 $ % 19.9% Cheekmeat $ % -24.8% Cheekmeat - Halal $6.07 $ % -18.4% Diap. Membrane $3.60 $ % -5.9% Hc Tripe $6.84 $ % 7.9% Hc Tripe - Halal $ % 9.2% Headmeat $4.37 $ % 0.4% Headmeat - Halal $ % -18.1% Heart $2.50 $ % 22.0% Heart - Halal $2.53 $ % 37.7% Heart - Aorta $ % 10.1% Heart - Aorta - Halal $ % 16.8% Kidneys $ % -15.3% Kidneys- Halal $0.90 $ % -28.0% Ligamentum $4.05 $ % -7.5% Liver $ % -17.2% Liver - Halal $1.28 $ % -8.3% Lungs - Halal $1.25 $ % -46.5% Omasum $ % 57.5% Omasum - Halal $6.55 $ % 28.4% Rum.Pill - Halal < 500 $ % 55.3% Rum.Pill - Halal > 500 < 700 $ % 25.3% Rum.Pill - Halal > 700 $ % 17.9% Rum.Pill < 500 $11.24 $ % 37.9% Rum.Pill > 500 < 700 $15.41 $ % 15.0% Rum.Pill > 700 $19.27 $ % 16.8% Tail $10.32 $ % 20.0% Tail - Halal $10.20 $ % 18.8% Tendons - Halal $ % 7.7% Thickskirt $6.13 $ % -8.2% Thickskirt - Halal $ % -6.1% Thinskirt $6.07 $ % -16.5% Thinskirt - Halal $ % -14.4% Tongue Root Fillet $ % 3.1% Tongue Root Meat $ % -17.4% Tongue Root Meat - Halal $2.07 $ % -17.3% Tongue SW $9.63 $ % -41.2% Tongue SW - Halal $ % -42.5% Tripe Pieces $3.37 $ % -11.4% Tripe Pieces - Halal $3.52 $ % -0.6% Price quoted is average price reported in Australian port. Page 3

4 Head offal Prices for head offal products were inconsistent this month. Head meat averaged $4.37/kg, down 2 /kg yearon-year however 27 /kg firmer than last month. Cheek meat was $1.87/kg cheaper than year-ago levels, averaging $5.65/kg, down 10 /kg from last month. Lip export prices to the US and Mexico eased, averaging $2.35/kg, down $1.05/kg year-on-year. Halal lips were steady, averaging $4.08/kg, up 5 /kg over last month and 68 /kg up yea-on-year. Figure 1: Trends in beef head offal prices Beef Lips Cheek Meat Head Meat Beef Lips - Halal Beef offal trends Omasum averaged $7.05/kg, up 45 /kg on last month and $2.57/kg from year-ago levels. Halal omasum averaged $6.55/kg, down 62 /kg month-on-month but $1.45/kg firmer year-on-year. Halal tripe pieces averaged $3.52/kg, 14 /kg higher month-on-month but down 2 /kg year-on-year. Non-halal product averaged $3.37/kg - 2 /kg above last month. Honeycomb tripe firmed 36 /kg month-on-month and was 50 /kg higher Figure 2: Trends in beef tripe prices HC Tripe Omasum Tripe PCS Omasum - Halal Tripe PCS - Halal Page 4

5 Beef offal trends continued... year-on-year, averaging $6.84/kg. Aorta averaged $7.20/kg for the month; firming 5 /kg month-on-month, and 66 /kg above year-ago levels. Heart prices were 23 /kg higher than last month and 45 /kg above year-ago levels, averaging $2.50/kg. Halal hearts averaged $2.53/kg, easing 7 /kg month-on-month however remaining 69 /kg firmer year-on-year. Figure 3: Trends in beef offal prices Heart Heart - Aorta Heart - Halal Kidneys were reported at an average of $1.03/kg, down 7 /kg since April, and 18 /kg softer year-on-year. Halal lungs were even, again averaging $1.25/kg for the month, but $1.09/kg below year-ago prices, while non-halal lungs were not reported once again. Figure 4: Trends in beef offal prices Kidneys Lungs Lungs - Halal Page 5

6 Beef offal trends continued... Liver prices averaged $1.20/kg, easing 18 /kg month-on-month and 25 /kg below year-ago levels. Halal livers firmed 13 /kg month-on-month and were up 9 /kg year-on-year, with quotes averaging $1.32/kg. Figure 5: Trends in beef offal prices Liver Liver - Halal Japanese and Korean Offals Tongue prices averaged $9.15/kg, down 2 /kg month-on-month and $4.53/kg below year ago levels. Thick skirt was 55 /kg lower year-on-year and 17 /kg softer month-on-month, averaging $6.13/kg. Thin skirt price firmed 34 /kg from last month and was $1.20/kg lower year-on-year, averaging $6.07/kg. Rumen pillars remain very firm, with heavy weight product averaging $19.27/kg, up 72 /kg month-on-month and $5.25/kg dearer than year-ago levels. Figure 6: Trends in Japanese offal prices Rum Pillars > 700 Thickskirt Thinskirt Tongue SW Page 6

7 Tails and Tendons Tail prices to Korea strengthened $1.22/kg month-on-month to average $10.32/kg, $1.72/kg higher than yearago levels. Halal tails also trended upwards, gaining 8 /kg month-on-month and $1.61/kg year-on-year, to average $10.20/kg. Tendons were not reported, whilst halal product averaged $7.00/kg, up 30 /kg month-onmonth. Figure 7: Trends in tail and tendon prices 11.0 Tail Tendon Tail -Halal Sheep Co-products Sheep offal prices were generally steady to soft this month; however kidney prices were firmer. Table 2: Sheep co-product prices Average (May Data) Range Responses Monthly Change Annual Change Heart Sheep - Halal $2.68 $ % 21.6% Kidneys Sheep - Halal $3.13 $ % 3.6% Liver Sheep - Halal $1.29 $ % 14.4% Runners Lamb $ % 47.1% Runners Sheep $ % 39.6% Tongue LC Sheep - Halal $3.98 $ % -1.9% Tripe Sheep - Halal $4.20 $ % -18.4% Price quoted is average price reported in Australian port and runners as $/piece. Page 7

8 Sheep offal Sheep hearts averaged $2.68/kg, up 1 /kg month-on-month but were 48 /kg dearer than year-ago levels. Sheep livers averaged $1.26/kg, down 6 /kg month-on-month but 16 /kg higher year-on-year. Kidneys returned $3.13/kg, firming 18 /kg month-on-month and 10 /kg firmer year-on-year. Sheep tripe prices were reported at $4.20/kg this month, 95 /kg lower than year-ago prices and down 17 / kg month-on-month. Sheep long cut tongue averaged $3.98/kg, down 25 /kg month-on-month and 7 /kg cheaper compared to last year. Figure 8: Trends in sheep offal prices Sheep Heart Sheep Kidney Sheep Tripe Sheep Liver Sheep Tongue LC Lamb runners averaged $6.95/piece, which was up 22 /piece month-on-month and $2.22/piece higher than year-ago levels. Sheep runners averaged $4.85/piece for March, up 5 /piece month-on-month and an improvement of $1.37/piece year-on-year. Figure 9: Trends in runner prices $ piece Lamb Runners Sheep Runners Page 8

9 Pharmaceutical products Pharmaceutical product was again lightly reported for the month. Table 3: Pharmaceutical prices Average (May Data) Range Responses Monthly Change Annual Change Foetal Blood $ $ % -12.6% Price quoted is average price reported in Australian port and foetal blood $/litre EXW Foetal blood averaged $312.00/litre, up $9.50/litre from last month s price, and was $45.00/litre below last year s price. Figure 10: Trends for foetal blood prices $/litre EXW Concentrated gall was not reported. Figure 11: Trends for concentrated gall prices $/kg EXW Page 9

10 Rendered products Rendered meals were reasonably steady however mixed species meals continue to trade at a significant discount in the domestic market. Singapore demand for tallow has reduced, primarily due to a two to three month shut-down of a major bio-diesel plant for maintenance and upgrades. Table 4: Rendered product prices Average (May Data) Price quoted is average price reported ex works$/tonne. Range Responses Monthly Change Annual Change Bloodmeal 85 $ $ % -16.2% MBM 50 $ $ % -18.3% Tallow Ined.<1FFA $ $ % -8.1% Tallow Ined.<2FFA $ % Tallow Ined.<4FFA $ $ % -5.2% Export meat and bone meal (MBM) prices eased in overseas markets, while firmer domestic prices narrowed the gap between the two markets. The price for 50% protein averaged $563.00/tonne, up $25.00/tonne month-on-month but $126.00/tonne lower year-on-year. Blood meal averaged $930.00/tonne ex-works, down $30.00/tonne on last month s price and $180.00/tonne lower year-on-year. Tallow prices eased on the back of strong production levels globally and the reduced interest from Singapore. Prices for 1% FFA tallow averaged $732/tonne, down $5/tonne on last month s price and $48/tonne below yearago prices, however, the weaker Australian dollar supported prices to some degree. Figure 12: Trends in rendered co-product prices $/tonne EXW Blood Meal 85 MBM 50 Tallow <1% FFA Page 10

11 Hides The hide market continued to weaken in the face of softer demand. The increased use of synthetics in sports shoes is placing enormous pressure on leather prices. This factor, combined with plentiful supply from the Americas, is expected to apply downward pressure on price levels in the short-term. Table 5: Hide prices Average (May Data) Range Responses Monthly Change Annual Change Hides NSW $ % -38.2% Hides NSW $ % -40.6% Hides NSW $ % -34.7% Hides NSW $ % -34.2% Hides NSW 351 Up $ % -30.1% Hides QLD TFA $14.67 $ % -44.7% Hides QLD TFA $23.00 $ % -36.1% Hides QLD TFA $31.33 $ % -36.9% Hides QLD TFA 351 Up $38.33 $ % -37.5% Hides QLD Ticky $ % Hides QLD Ticky $ % Hides QLD Ticky $ % -43.7% Hides QLD Ticky 350 Up $ % -43.0% Hides VIC $ % -35.6% Hides VIC $ % -36.4% Hides VIC $ % -34.8% Hides VIC $ % -34.2% Hides VIC 351 Up $ % -31.9% Price quoted is average price reported for ex works $/each. Local prices for hides were down a further $2.00~$4.00/piece compared to last month. Figure 13: Trends in hide prices (East Coast Ex Works) NSW Hides Vic Hides Qld TFA Hides Qld Ticky Hides Page 11

12 Currency exchange The Australian dollar eased further against the US dollar, opening at 75.40US and easing to 74.35US, then reaching a high to 75.88US before closing the month at 75.64US to average 75.27US for the month in what was a rollercoaster ride. Figure 14: AUD /USD Foriegn Exchange AUD/USD Source: Reserve Bank Australia Export statistics To access the latest co-products statistics please click here: For more information: Please call Aex McIntosh on or amcintosh@mla.com.au This report is produced from a monthly MLA survey of approximately 25 processors across Australia, collating average prices and analysing trends on a range of co-products items Market Information Meat & Livestock Australia Ph: Fax: marketinfo@mla.com.au Published by Meat & Livestock Australia Limited ABN June 2018 Meat & Livestock Australia Limited 2017 MLA makes no representations as to the accuracy of any information or advice contained in this publication and excludes all liability, whether in contract, tort (including negligence or breach of statutory duty) or otherwise as a result of reliance by any person on such information or advice. Free to MLA members Terms and Conditions Page 12