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.

Brazilian Biodiesel Production

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.

Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.