Tuesday 21 June 2011

Offal no longer going in the pit

Exports of red meat ‘co-products’ – such as edible offals, casings, pelts and rendered products, tallows and meat meal –  offer increasingly important market diversity for New Zealand agriculture and in 2010 contributed $1 billion to the country’s sheep and beef sectors, according to a new industry report.

In its recently-released industry note The Fifth Quarter, specialist food and agribusiness bank Rabobank says a focus for New Zealand’s sheep and beef sectors has been on increasing exports of edible offal in particular, using existing plant to process a wider range of edible products. Expansion of sales from edible, but not traditional, parts of the animal carcass has increased the utilisation and returns from meat processing, the report says.

So-called ‘co-products’ are a diverse range of goods created once red meat cuts have been processed from the animal carcass.  Adding value to pelts, viscera (offals), bones and fats may be done in New Zealand or raw materials can be sold into a diverse range of markets.

Report author Rabobank animal proteins analyst Rebecca Redmond says pressures on supply in the New Zealand sheepmeat sector in particular (with decreasing stock availability) has been driving processors to extract greater value from the whole carcass.  “A similar story has played out for the beef sector, where focus on the expanding range of edible non-meat products has occurred in line with increased interest from emerging markets,” she says.

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