Fab­u­lous fleece

Tasmanian Country - - NEWS -

Cluny claims big gong

DON­ALD Trump’s op­po­si­tion to re­new­able en­ergy may be cost­ing Aus­tralia’s red­meat in­dus­try mil­lions of dol­lars.

Pro­ces­sors have blamed the sharp de­cline in prices for tal­low, a ren­dered form of beef or mut­ton used in re­new­able en­ergy sys­tems, to the US Pres­i­dent’s poli­cies mov­ing “away from re­new­ables” and “back to coal gen­er­a­tion”.

Meat and Live­stock Aus­tralia fig­ures show tal­low prices have fallen from $1057 a tonne when Mr Trump took of­fice in Jan­uary to $677 a tonne in June, when he an­nounced the US would with­draw from the Paris agree­ment on re­duc­ing green­house-gas emis­sions.

Prices have since eased fur­ther to about $600 a tonne.

At the time of the with­drawal from the Paris agree­ment, Mr Trump said a re­liance on re­new­able en­ergy would put his na­tion at “grave risk” of in­creased black­outs and power dis­rup­tions and stem eco­nomic growth.

With tal­low val­ued at about $20 to $60 ex­tracted from an adult an­i­mal at pro­cess­ing, the 43 per cent drop in Aus­tralian prices is hurting abat­toirs.

Tal­low prices are trad­ing about $300 a tonne cheaper than this time last year and $310 a tonne down on the av­er­age of the pre­vi­ous 18 months.

How­ever, Aus­tralian Ren­der­ers As­so­ci­a­tion ex­ec­u­tive of­fi­cer Den­nis King said while the poli­cies of Mr Trump may have had “a lit­tle bit” to do with the price slump, a cor­rec­tion had been in­evitable.

“This has been on the cards for a cou­ple of years,” he said.

The re­moval of tax cred­its on Aus­tralian tal­low by a ma­jor buyer in Sin­ga­pore af­ter “sig­nif­i­cant pres­sure from the US fats and oil in­dus­try” had put pres­sure on prices. This forced Aus­tralian ex­porters back to tra­di­tional mar­ket of manufacturing soap, com­pet­ing with the eas­ing global price of palm stearin.

Pic­ture: ANDY ROGERS

BIG MO­MENT: Scott and Kate Bowden with their win­ning fleece at the Sheep­ven­tion in Hamil­ton.

Newspapers in English

Newspapers from Australia

© PressReader. All rights reserved.