Beef By-Product Values Surge Higher
Oklahoma Farm Report
13 Sep 2021
Weekly, Oklahoma State University Extension Livestock Marketing Specialist Derrell Peel offers his expertise on the cattle industry. This is a part of the weekly series known as the "Cow-Calf Corner" published electronically by Derrell Peel. Today, Peel talks about beef by-product values.
“By-product values for cattle have increased dramatically in the past few months. Hide and offal values, which have generally declined in recent years, bottomed during the early stages of the pandemic in 2020 to the lowest levels since 2009. In the past 13 months, steer hide and offal values have risen from $6.93/cwt. on a live fed steer basis in July 2020 to an August, 2021 value of $14.99, an increase of 116 percent. The current by-product value is the highest since January of 2015. Figure 1 shows the monthly average steer hide and offal values for the past decade.
“The sharp jump in by-product values is due to increases in hide values along with several other products included in the by-product totals. The largest component of by-product values is the hides. The August steer hide values is up 115 percent year over year. In recent years, hides have dropped from roughly half of total by-product values to about 30 percent of the total. Despite the doubling of hide values in the past year, hides still only represent 31.7 percent of current by-product value. This is because numerous other by-product values have likewise increased sharply in the past year...
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