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Your Update from Ron Hays of RON
Tuesday, September 14, 2021
Beef By-Product Values Surge Higher
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.

“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 majority of hides and offals are exported. Over the past decade, exports of hides, variety meat, and tallow have added an average of $2.42 billion to total beef industry exports. In 2020, the value of hide, variety meat and tallow exports was $1.7 billion.”

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