Australia - Tallow prices

15 Dec 2009

The price of 1% FFA (free fatty acid) tallow in November was 36% higher at an average of $685/tonne ex-works when compared with a year earlier, and 52% higher for 2% FFA tallow. However, prices fell slightly from the previous month – 10% for both 1% and 2% FFA tallow – as the appreciating exchange rate continued to put pressure on prices in A$ terms (MLA’s Monthly Co-products Monitor).
Looking ahead, an increase in price seems likely with palm oil (a substitute good, from which tallow prices take their lead) now relatively expensive when compared to tallow. This has reportedly already led to increased enquiry from end users in major markets such as China, Korea and Taiwan.
Supply may also become tighter, with Australian beef production levels in October falling 5% below the five-year average. Adding to that are the looming processor closures for the Christmas period.

Source: MLA.com


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