Adding Value to the Scottish Red Meat Supply Chain

Martin Palmer announced that common topic folders had been distributed to Scottish abattoirs addressing liver, hearts and cheek meat. Liver flake will be next topic but many others will follow.

Jean Paul Garnier, AHDB reminded meeting that the value lost because of not realising enough from the fifth quarter is £75m per annum in the UK. This was based on values achieved in Italy, France and Spain.

UK meat exports are worth £1.381bn of which beef is 15.4%, sheep 19%, pork 9.7% but offal only accounts for 0.2% beef, 0.1% sheep and 0.7% pork.

Potential for greatest return is still to increase value to tripe and liver. Indicative price for tripe had risen from 45p/kg in 2005, to 70p in 2006, 98 in 2007, 147 in 2008 and 140 in 2009.

Third countries opportunities for offal and variety meats
• Far East: Hong Kong (ovine & porcine), Vietnam (ovine, porcine & Bovine), Singapore (ovine & porcine) Gulf CC (ovine)”¦
• Also Africa and the West Indies
• Hong Kong authorises boneless beef cuts UTM, since June 2009 but not offal yet.
• Chinese veterinary visit awaited (July?) (ovine offal).

Prices indications

• Ox tongues (Swiss cut)
-Japan: £10.33 /kg
– Rungis: €5.00-5.50/kg
• Ox hearts, capon.
-Madrid €0.8 /kg
-Rungis: €0.70 /kg
-EU frozen: €0.87/kg
• Ox livers
-EU block frozen: 0.72 -0.82 /kg
-Madrid fresh: 1.1 /kg
• Rungis fresh: 0.85 – 1.1 /kg

• Ox cheeks
-Madrid: €2.80 /kg
-Rungis: €4.00-5.00 /kg
-EU: €2.45 /kg
• Oxtails
– Madrid: €2.30 /kg
-EU: €2.45 /kg
• Ox kidneys
– Rungis: €1.00 /kg
• Ox snouts
-EU: 0.80 /kg
• Thin skirt
– Rungis €4.00 – 4.50 /kg
• Thick skirt
-Rungis €5.80-7.50 /kg
• Lamb sweet breads
-Spain: €7.50/kg
-Rungis: €7.50 /kg
• Lamb hearts /livers
– Rungis: €2.50 /kg
• Lamb plucks
-Rungis €2.30 /kg
• -Greece frozen: €1.00 /kg (€2.80 at Easter)
• Lamb tongues
-Rungis: €4.00 /kg

Things are moving in the right direction

UK opportunities

• No explosion in offal sales despite press comment
• Total offal sales are slightly up, mostly liver.
• Total retail sales are 16,766t (GB TNS data 52 weeks to end of May 2009) up from 16,258t.
• Liver is up to 9,653 t to from 8,713 but kidneys are down to 1,893 t from 2,175 t.
• Little change expected in foreseeable future.
• Problem remains that consumer does not know how to cook offal.
• Therefore export needs to be the main focus if improved prices are to be achieved

Lydia Liu from Vietnam made a presentation showing what the offal is used for in her country. Video showed aorta, paddywack and tripe being prepared and cooked. At times it looked like scenes from “I'm a celebrity get me out of here.”

Stuart Dobson of Northern Ireland based Elmgrove has developed the market for products.

Sample Beef products
• Paddywack
• Skirt Membrane
• Testicles
• Aorta
• Silverskin
• Tendons
• Flank Membrane
• Rib Paddywack
• Cartilage
• Knee bone
• Pizzle
• Striploin Membrane
• Achilles Heel
• Omasum
• Honeycomb

Sample Lamb products
• Paddywack
• Testickles
• Cartilage
• Pizzle
• Barrels
• Tripe
• Tails
• Bone in Neck
• Fillet Bone

Value of cheques to suppliers varied from £5,000 to £20000 per month.

What is in this for you?

• Established and expanding business market
• Open to all abattoirs and boning facilities (large & small)
• No export licences are required
• Can turn waste material costing around £80 per tonne to dispose
• Into £700 per tonne sales income (average)
(based on mixture of products as per specification booklet)
• Total contribution per tonne: £780

WHY ELMGROVE?:
Simple Specifications (Generally):
a) No Meat, No Fat
b) Fixed weight boxes (usually 25kgs per box)
c) 3 liners per box
d) Foreign name attached

CONCLUSION:

• Established Market
• These are FOOD products
• Long term contract – quantity and prices
• Decreases waste disposal costs
• Receive a high income for these products
• Join an increasing supplier base
• No restrictions on quantities
• No special permits or licenses required
• Can commence immediately
• Open to all abattoir and boning facilities

Next Steps:

1. Arrange meeting with Elmgrove Staff
2. Give an indication of production numbers for each species
3. Agree prices
a) ex worksdelivered
b)fresh/frozen
4. Agree coldstore collection point
5. Commence work

Peter Lim of Ren & Zhang Worldwide Trading outlined the offal requirements in the Far East.

George Burt of Dewied UK Ltd (part of Texan casing company) Core expertise lies in the “production” of hog and sheep casings. This means Pulling, selecting, cleaning and grading.

An estimated 80% of the world's natural casing supply is processed in China.

It was felt that there was potential to use more Scottish lamb casings in Scotland rather than importing more from outside Scotland.