Lamb co-products compendium highlights opportunities from sheepmeat processing
In 2022, the estimated export value of sheep co-products was valued at $113 million. According to MLA’s Group Manager for Science & Innovation, Michael Lee, co-products offer a range of product opportunities for processors and consumers.
"Sheep and lamb co-products comprise a significant proportion of the returns from animal processing, and proper utilisation of co-products will generate greater value for each carcase through the supply chain", Mr Lee said.
"In 2009, MLA released a large manual called the Co-Products Compendium, which included yields and descriptions of offal, bone, blood by-products and skins derived mostly from beef cattle, but also lamb and sheep.
"The Science & Innovation team have updated this and specifically designed it around lamb and sheepmeat only. The compendium is filled with the latest yields and images and examples of what we now refer to as the fifth quarter and we have seen recent innovation successes in nutraceuticals, pet food treats and collagen drinks using co-products from sheep and lambs".
In many cases, co-products offer more opportunities for innovation and profit than commodity red meat and can provide a valuable competitive advantage for processing plants. The weight of the co-products can account for over 50% of the sheep carcase.
The compendium notes that, in general, the highest value can be obtained by packing co-products for edible use. Pet food has the second highest value and rendering is the least value. The compendium examines these uses of co-products, as well as rendered products like bone meal and tallow and skins and pelts.
Within the co-product breakdown are various forms of information including market volumes and uses, typical costs for processors and regulations and market access.
"The lamb co-products compendium highlights the potential for significant improvements to the current value of lamb co-products. We can now share that knowledge for industry to enter the co-products value adding sector", Mr Lee said.
"In all cases, customers are seeking a relationship with the processor to provide a consistent supply in terms of volume, quality and price. Opportunities exist for the co-product supplier to work with manufacturers seeking co-products to establish ongoing supply chains beneficial to both parties".
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