Offal volumes decline despite Ramadan generating demand

MLA’s May Co-products report highlighted the considerable increase in exports to Indonesia, as well as some smaller markets looking for product ahead of Ramadan, despite total Australian beef offal exports declining during the month, as a result of contracting slaughter numbers.

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Beef offal exports to Indonesia during May more than doubled April volumes and recorded a more than 6 fold increase from year-ago levels, to 1,578 tonnes swt. The increase consisted mostly of tongue, tongue roots, head meat and beef lips. The beginning of Ramadan in early June aided the lift in shipments, supported by strong demand for beef among Indonesian consumers.

Shipments to Egypt were 89% lower than year-ago levels, at 158 tonnes swt. During 2015, a period of high Australian beef production and record cattle slaughter, Egypt was a major destination for Australian beef offal. In 2016, however, the combination of lower Australian cattle slaughter and economic issues in Egypt has seen volumes decline considerably.

Hong Kong, Korea and Japan also registered reduced Australian beef offal shipments in May, reflecting the lower Australian cattle slaughter compared with the high levels of last year.

Mutton, lamb and goat offal exports increased 2% year-on-year in May, to 2,587 tonnes swt. Shipments to Australia’s largest sheep and goat offal market (in volume terms), Saudi Arabia, increased 22% on the previous month and 27% year-on-year, to 823 tonnes swt – predominantly driven by a lift in liver exports. Volumes to Hong Kong eased 10% on last year, to 650 tonnes swt, while exports to Papua New Guinea jumped 78% to 216 tonnes swt, with an increase in tongues.

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