Beef byproduct value soats in 2008

A little noted, but critically important, part of the beef industry equation is byproduct value. Everyone thinks of roasts and steaks and all the hamburger pushed out through fast food restaurants, but just as important to total return from each beef carcass is the byproduct value. In just the last year, this value has risen from $9.70 per hundredweight to $10.72 this year.

Bone meal value is up 85% from last year, edible tallow is up 76% and inedible tallow 61%. Variously dismissed as offal or leftovers or worse, byproducts are actually very important in the manufacture of soap, pet food, gelatin and many other products. This is to say nothing of hides and leather, another valuable part of the beef carcass. The oil and feedstuff markets have bid up byproduct prices in the last year.

In a year when cattle prices have been volatile, and lower than in recent years, strong byproduct prices are an especially important source of revenue for the industry. It is harder to measure, and to the producer, is a more indirect part of keeping cattle prices up. But important nonetheless.

In all the mass media feeding frenzy over the possible slaughter of "downer" cows at the Hallmark plant in California, what's missing is reporting of the likelihood that those carcasses were sifted from the beef line to the byproduct line, once inside the plant. It is not entirely a loss to the packer when a diseased or other carcass is sifted, as it goes into byproducts that still bring back revenue to the company. Sold at meat prices, of course the carcass is more valuable, but as byproduct it has value too.

Consumers, and even vegetarians, are unaware of the plethora of products they buy everyday that are made from beef byproducts. They are harmless, since the rendering process leaves them clean and sanitary for non-eating purposes.

There's be a lot holes in the grocery store shelves, if beef byproducts suddenly disappeared from the market.