Both steer and hog byproduct values have seen slow but steady price support so far this year, reports the Livestock Marketing Information Center (LMIC). Factors that strongly influence these byproduct values include live animal supply and exchange rates.
Steer byproduct values bottomed around $10.50/cwt. at the end of 2015, and have rebounded since then, according to the U.S. Department of Agriculture. As of mid-October, the steer byproduct value was $11.55/cwt., compared to $11.11/cwt. a year ago and $13.51/cwt. for the past five year average (2010-2014).
Within the byproduct categories, the hide is the largest contributor to overall value. Most hides in the U.S. get shipped to China for processing then shipped back or to other countries for further use. As of mid-October the Heavy Native steer hide was priced at $75 per piece, up $7 from a year ago. Other beef variety meats that have experienced higher prices compared to a year ago include: head meat, oxtails, and the semiannually contracted pet food items, LMIC noted. Livers, lips, heart, and cheek meat prices, on the other hand, were all below 2015 levels.
As of mid-October, hog byproduct values were at $3.71/cwt., slightly improved compared to their year ago level of $3.30/cwt. but still below the past five year average of $5.37/cwt.
“Within byproduct categories, heart and stomach prices were above their year ago levels, while cheek meat and liver prices have fallen below their respective 2015 levels.”