What does the phrase “drop credit” refer to?

In addition to the value of a beef carcass and the beef cuts that typically are generated from the beef carcass, there is a value of other parts of the carcass that are termed “drop credit.” This includes the value of the hide, head, organs, and blood. Variety meats are produced from carcass offal such as livers, hearts, and tongues.

A packing plant rarely makes money on the meat. In many cases, the profit margin is often driven by the “drop credit” or value of products that typically are not utilized domestically but have value in the international market.