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