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How to Leverage Body Fat and Lean Value Shifts

Amid supply chain disruptions and shifting consumer demand starting in 2020, the meat processing industry has witnessed a substantial rise in value for an unexpected product - body fat. Since 2019, fat had remained stable at approximately $0.71 [€0.62] per kilogram; beginning in April 2021, this figure started climbing steadily, with the latest reports showing a nearly 250% increase to $1.68/kg [€1.48/kg].
Body fat value comparison for beef from January 2019 at $0.71 to February 2022 at $1.68

This is especially noteworthy when compared to VL grades, which have all experienced between a 110% and 145% value increase. The revenue implications are significant for meat processors who act on these insights; combining body fat with high-grade VL to produce 85VL is no longer the most profitable approach.

Isolating body fat from VL grades to generate higher volumes of premium 98VL and body fat/tallow can maximize returns from these rising fat prices.

FloVision AI equips meat processors with yield, quality, and process analytics generated by automated, real-time production line scanners. To discover how our insights help meat processors boost profitability, get in touch today.