SAO PAULO, June 16 (Reuters) – Cargill is studying the feasibility of using beef tallow to produce biodiesel in Brazil, a trader for the firm said on Tuesday, as U.S. tariffs have made exports of the animal fat less attractive.
• The U.S.-based company does not currently use beef tallow, but has a project to assess its viability, trader Paulo Cardoso said at an event in Sao Paulo
• One of three biodiesel plants Cargill acquired from Brazilian firm Granol in 2023 previously used tallow, indicating no operational constraints
• Soybean oil is Brazil’s main biodiesel feedstock, while beef tallow ranks third nationwide
• U.S. tariffs on Brazilian beef tallow stand at 10% but could rise, meat packers association Abrafrigo recently said
• U.S. taxation “opened eyes” to the need to seek out new markets for tallow, Cardoso said, noting Cargill’s Brazil unit previously acted as a major tallow exporter to the U.S.
(Reporting by Roberto Samora; Writing by Fernando Cardoso; Editing by Sanjeev Miglani)
