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Agricultural News

Cattle Hides in High Demand- Pushing Drop Credit Values to Best Levels Since 2015

Thu, 22 Jul 2021 14:18:59 CDT

Cattle Hides in High Demand- Pushing Drop Credit Values to Best Levels Since 2015

In addition to the value of a beef carcass and the beef cuts that typically are generated from the beef carcass, there is a value of other parts of the carcass that are termed “drop credit.” This includes the value of the hide, head, organs, and blood. Variety meats are produced from carcass offal such as livers, hearts, and tongues. While Drop Credits have been depressed in recent years, Katelyn McCullock of the Livestock Market Information Center, says the value of the hide and the variety meats has been trending higher in recent months, especially for the hide.

On this Beef Buzz, Katelyn McCullock explains that the drop credit value as calculated by the USDA is at its best levels since 2015. She tells Radio Oklahoma Ag Network Farm Director Ron Hays that the current value is above $13 a hundred- with a lot of the increase coming from the hide. Whole hides this spring are up 62 percent over 2020 and just over 50% compared to 2019. Variety meats are six percent up from 2020 but are actually slightly under 2019 values- about four percent versus two years ago.

McCullock says the reason for the increase in the value of the hides is not totally clear- but she says a market that had an uncertain future five or six years ago is showing a lot of strength as carmakers and furniture manufacturers are having lots of demand for their products- and that translates into better prices for leather hides.

It's important to remember that a limiting factor that has been caused by the pandemic is available labor to fabricate carcass parts into variety meats that can be shipped to the international market.

Click on the LISTEN BAR below to hear comments from Ag Broadcaster Megan Overby.

The Beef Buzz is a regular feature heard on radio stations around the region on the Radio Oklahoma Network and is a regular audio feature found on this website as well. Click on the LISTEN BAR below for today’s show and check out our archives for older Beef Buzz shows covering the gamut of the beef cattle industry today.


Ron Hays Beef Buzzes with Katelyn McCullock of the LMIC About Drop Credits
right-click to download mp3


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