Exports of lamb and beef by-products are worth more than $1 billion a year, the latest report on the meat industry shows.
The report, from specialist food and agribusiness bank Rabobank, found exports of offal, casings, pelts and rendered products such as tallows and meat meal are growing in value.
Rabobank's animal proteins analyst, Rebecca Redmond, says the trade has added more than $200 to each head of cattle processed.
Meat processors are trying to extract greater value from whole carcasses due to pressures on supply from falling stock numbers, she says.
Ms Redmond says meat and lamb by-products will become even more important to exporters in future - and they need to look at dedicated market development.