Cheap sheep runners could drive sausage trend

It comes as offal prices continue their downward glide.

Meat & Livestock Australia's latest co-product reports for March and April highlight the downward trends, which are largely being driven by a combination of strong supply and decreased demand.

Sheep runners are currently fetching an average $2.20 a piece, on par with 2020 prices.

The drop in pricing is being attributed to the boom in lamb and sheep slaughter numbers and is expected to lower input costs for sausages.

But the pricing has not yet reached the lows reached in late 2019, when sheep runners went down towards $1 after being as high $4.60 in 2018.

During the high supply period in 2016 sheep runners were selling for $2.07.

MLA markets information officer Stephen Bignell said if the price reductions are passed on to consumers, it could make sausages a more appealing option.

"One of the key elements of the sausage making process has gone down at a time when we're looking for more economic meat offerings," he said.

"That supply record that we're on track for is what's putting pressure on prices."

Meanwhile tallow prices are now below $1300 a tonne, down by more than 30 per cent from their December 2022 level of $3000 a tonne.

Mr Bignell said significantly, tallow prices had fallen below those being paid for bloodmeal, which is averaging $1360 a tonne.

"What we're hearing is with some of the cosmetics that it's used in, inflationary pressures and economic sensitivities have limited demand for healthcare, moisturisers and beauty products," he said.

"You would think that what's happening with the price of fuel would become a good alternative but it's come back just as economic conditions mean travel is also down."

Prices for tripe, liver, tail and tongue have all increased over the past 12 months.

Mr Bignell said this could be attributed to a rise in the usage of secondary cuts both domestically and in export markets, as they appear on more food service menus.