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Global commodities trader Cargill is assessing the feasibility of utilizing beef tallow for biodiesel production at its facilities in Brazil, following recent U.S. tariff implementations that have reduced the profitability of exporting the animal fat.
Speaking at an industry event in Sao Paulo on Tuesday, Cargill trader Paulo Cardoso stated that while the U.S. agribusiness giant does not currently incorporate beef tallow into its Brazilian operations, a dedicated project is actively underway to evaluate its commercial and operational viability.
Signaling no technical barriers to adoption, Cardoso noted that one of the three biodiesel processing plants Cargill acquired from Brazilian firm Granol in 2023 had previously utilized beef tallow in its production mix.
Currently, soybean oil remains the primary feedstock for biodiesel manufacturing in Brazil, with beef tallow holding the position as the nation's third-largest source.
The shift in strategy comes as Brazil’s meat exporters association, Abrafrigo, recently highlighted that U.S. tariffs on Brazilian beef tallow currently stand at 10%, with expectations of potential further increases.
According to Cardoso, these shifting U.S. trade policies have "opened eyes" to alternative market opportunities. Previously, Cargill’s operations in Brazil functioned as a major exporter of beef tallow directly to the United States.
Source: reuters