Brazil’s use of beef tallow for biodiesel production is set to increase as domestic sales rise, according to industry experts. The stronger local demand is expected to offset a sharp decline in U.S. imports after Washington imposed new tariffs on Brazilian beef and byproducts.
Until recently, exports of Brazilian beef tallow had been booming. Between January and July, shipments reached 290,800 tons, almost 91% of the entire 2024 total, according to Scot Consultoria. Nearly 98% of those exports were sent to the United States, highlighting the country’s dependence on the American market.
That reliance now faces a major setback. The U.S. has imposed a 50% import duty on certain Brazilian products, making further beef tallow exports to the U.S. nearly impossible, said Andre Nassar, president of oilseed lobby Abiove. However, he noted that growing domestic demand—especially from biodiesel companies—could help soften the blow. Many vertically integrated meatpackers already produce biodiesel but lack enough tallow for their own operations, creating new opportunities for local purchases.
Abiove, which represents soy processors, highlighted that soy accounts for 75% of Brazil’s biodiesel production. This means beef tallow could become an increasingly important alternative feedstock for the biofuel sector.
The surge in Brazilian exports earlier this year was largely driven by the sharp drop in U.S. cattle herds, which reduced domestic tallow output and shifted demand toward Brazilian suppliers. According to Scot founder Alcides Torres, exporters likely accelerated shipments before the tariff deadline in early August.
Torres warned that the new tariff now acts as “a de facto embargo” on Brazilian beef and byproduct exports. Still, he pointed out that one possible workaround could involve shipping beef tallow to neighboring countries, which could then re-export the product to the United States, bypassing the heavy import duty. This strategy might help Brazil diversify its international buyers while keeping export volumes steady.
