Demand for beef tallow grows in Brazil after US tariffs affect exports.

247 - The use of beef tallow in biodiesel production in Brazil is expected to increase in the coming months, amid forecasts of higher domestic consumption and attempts to offset the decline in exports to the United States. This information was released by [source missing]. Reuters agency, which heard from industry representatives about the impact of the new US tariffs.

According to data from the consulting firm Scot Consultoria, based in Bebedouro (SP), Brazil exported 290,8 tons of beef tallow up to July, equivalent to almost 91% of the total volume shipped in 2024. Of this amount, about 98% went to the United States, which had been increasing its purchases due to the decline in its local cattle herd.

However, a 50% import tax on certain Brazilian products was imposed by the US president. Donald TrumpThis has changed the scenario. For André Nassar, president of the Brazilian Association of Vegetable Oil Industries (Abiove), the measure makes sales of beef tallow to the North American market "prohibitive".

 “The tariff makes sales virtually unfeasible in the United States,” Nassar said in an interview with Reuters. He highlighted, however, that domestic demand could reduce the impact of the measure: “Biodiesel companies should increase their purchases, including meatpacking plants that produce biodiesel but cannot meet all their domestic needs for the input.”

Abiove, which represents soy processors responsible for 75% of the national biodiesel production, sees the domestic use of tallow as an alternative to keep the production chain active.

Strategies regarding tariffs

The founder of Scot Consultoria, Alcides Torres, observed that the acceleration of exports until July may have been an attempt by exporters to anticipate shipments before the tariff came into effect.

 “These are palliative measures,” he assessed. “The new tax is, in practice, an embargo on exports of meat and meat products.”

Torres added that, after the tariffs were applied on August 6, a possible solution would be to export the product to neighboring countries, which could then re-export it to the United States. This strategy, in addition to circumventing the high costs, could expand the base of international buyers and sustain export volumes.

Outlook for the sector

With the United States virtually closed to Brazilian beef tallow, the expectation is that the domestic market will take center stage. The expansion of biodiesel in Brazil, coupled with the vertical integration of meat processing plants and the use of alternative inputs, could absorb a significant portion of the production that previously went abroad.

Nevertheless, the sector acknowledges that the US measure is a significant blow, since exports were heavily concentrated in that market. The search for new international destinations and the strengthening of domestic consumption will be crucial to avoid greater losses.