# Rising costs squeeze Australian sheep processing margins | Farm Online | ACT

> MLA revised the July Sheep Processor Trading Conditions index up to 1% from 0.4%, reflecting a 13% rise in co-product prices since June, including a 28% increase in offal and a 10% gain in tallow. The August index fell back to 0.4%, showing processor margins remain thin.

- Date: 2025-10-21 · published 2025-10-21T12:00:00.000Z
- Category: market · region Global · magnitude low
- Page: https://feedsoft.ai/events/22529-rising-costs-squeeze-australian-sheep-processing-margins-farm-online-act
- Commodities: [Meat & Bone Meal](https://feedsoft.ai/c/MBM.md)

## Why it matters

Higher offal and tallow values are supporting processor margins, but high livestock procurement costs keep the sector squeezed. Tallow strength supports fat-based feed ingredient prices.

## Read by commodity

- MBM: bullish ▲

## Sources

- farmonline.com.au: https://www.farmonline.com.au/story/9093209/rising-costs-squeeze-australian-sheep-processing-margins/

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.