Key facts
- Cargill is investigating the use of beef tallow for biodiesel production in Brazil.
- U.S. tariffs on Brazilian beef tallow are impacting export markets.
- Cargill previously exported tallow to the U.S. and has a plant with prior tallow experience.
- Soybean oil is the main feedstock for Brazilian biodiesel, followed by beef tallow.
Cargill is evaluating the potential to use beef tallow for biodiesel production in Brazil, a move influenced by U.S. tariffs that have diminished the appeal of exporting the animal fat. A trader for the company, Paulo Cardoso, stated that while Cargill does not currently utilize beef tallow, a project is underway to assess its viability. This exploration comes as U.S. tariffs on Brazilian beef tallow stand at 10% and could potentially increase, according to the meat packers association Abrafrigo. Cardoso noted that these U.S. taxation policies have prompted a search for new markets for tallow, highlighting that Cargill's Brazilian operations were once a significant exporter of the product to the United States. Cargill acquired three biodiesel plants from Brazilian firm Granol in 2023, one of which had previously used tallow, suggesting no operational hurdles. In Brazil, soybean oil is the primary feedstock for biodiesel, with beef tallow holding the third position nationwide.