The value of co-products from Australian processed cattle was substantially higher in August compared to year earlier figures, according to Meat and Livestock Australia’s Monthly Co-Products Monitor.

Cattle co-products which include offal items, hides, pharmaceutical extracts and rendered products such as tallow, meat and bonemeal, and bloodmeal can account for as much as 25pc of the saleyard value of some cattle.

Every month MLA surveys approximately 25 abattoirs across Australia and collates average pricesto update the potential co-product values for livestock.

MLA reported yesterday that the potential co-product value of a grassfed prime steer (average 274kg cwt) increased 14pc year-on-year in August to averaging $177.25/head.

However the overall value continued to ease since the highs reached in March ($194.53/head), also falling 1pc on July.

“Tallow values were 26pc higher year-on-year in August, finishing the month at $41.11/head. While still above year ago prices, tallow prices have fallen consecutively since the highs registered in February. The underlying factor for this decline has been the easing palm stearine value, which has weakened demand for tallow.

“The value of offal increased 19pc year-on-year in August, as well as moving 3pc higher on July, to $66.12/head. Improvements in market confidence (Japan), reportedly higher boneless beef prices, as well as a relatively weaker A$ all contributed to the rise.

“Hide (241-280 kg) values increased 6% year-on-year in August, to $41.50/head. Hide values rose early in 2011, but have eased since June, with MLA's National Livestock Reporting Service noting that global demand for leather has been inadequate to support production levels. Leather good manufacturers have product in storage, and overseas hide producers also have surpluses.

“Meat and bone meal prices in August increased slightly on July, but fell 1% year-on-year, to $28.51/head. The export market was reportedly quiet in August, except in Indonesia, where demand for meat meal was strong. Low production levels also helped to support prices in August.”