With supply chain shortages and shifts in consumer demand beginning in 2020, the meat processing industry has seen a dramatic increase in value for an unexpected product - body fat. Since 2019, fat has stayed at a consistent $0.71 [€0.62] per kilogram on average; in April 2021, this number began to steadily rise, with the most recent reporting indicating a nearly 250% increase at $1.68/kg [€1.48/kg].
This is particularly surprising compared to VL grades, which have all seen between a 110% and 145% value increase. There are considerable implications on revenue for meat processors who leverage these insights; blending body fat and high grade VL to make 85VL is no longer the most profitable solution.
Separating body fat from VL grades to produce higher volumes of high-value 98VL and body fat/tallow can maximize the profits from these increasing fat prices.
FloVision Solutions provides meat processors with yield, quality, and process analytics from automated, real-time production line scanners. To learn more about how our insights help meat processors increase profits, please reach out.