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Yes it can be used for jerky and should be some excellent jerky made from the loins. Those are like gold when we get an elk or mule deer - butterfly into steaks, season and grill to med rare...heaven on a fork.
Good call on saving the backstraps for grilling. We get every roast we can out of the hind quarters, trim them up well, and slice a little over 1/8" with the grain. They make excellent jerky. I have tried making jerky with beef when all our venison is gone, but it doesn't even compare to the venison.