Beef, sheep or goat fat market in MERCOSUR

Earlier Report Observations

Between 2018 and 2023, the production volume of beef, sheep, and goat fat in MERCOSUR remained relatively stable, ranging from 1 941 thousand tons to 2 113 thousand tons. The market size in physical terms grew to 1 960 thousand tons in 2020 before declining to 1 645 thousand tons in 2023. In value terms, the market expanded significantly from $1 768 million in 2018 to a peak of $3 190 million in 2022, then dropped to $2 178 million in 2023, reflecting substantial price fluctuations over the period.

Trade flows shifted notably, with imports surging in 2020 to 86 thousand tons before falling back, while exports grew consistently from 123 thousand tons in 2018 to 504 thousand tons in 2023. This strong export growth contributed to the reduction in domestic market volume available for local consumption from 2021 onward.

In 2024, the export momentum continued, supported by the dominant role of large vertically integrated meat processors like JBS, Marfrig, and Minerva Foods in the regional livestock sector. The pending ratification of the EU-MERCOSUR trade agreement also influenced market dynamics, potentially enhancing access to international markets for animal fat producers in the bloc.

Production beef, sheep or goat fat in MERCOSUR

In kind, 2017-2020, K t

Top producers of beef, sheep or goat fat, 2017-2020

World map of production of beef, sheep or goat fat, 2017-2020

Following two years of growth, MERCOSUR's production volume of beef, sheep, or goat fat declined. In 2020, production stood at 2 022 K t, showing little change from the previous year. Over the 2017-2020 period, production increased by 14.5%, with an average annual growth rate of 4.6%. The highest production level was recorded in 2019 at 2 024 K t, while the largest annual increase occurred in 2018 at 9.9%.

Annual dynamics of production in MERCOSUR in kind, 2017-2020, K t

In value, 2017-2020, M $ US

MERCOSUR's production value of beef, sheep, or goat fat increased for the second consecutive year. In 2020, output was valued at 1 520 M $ US, representing a significant rise of 13.3% compared to 2019. Between 2017 and 2020, production value grew by 23.1%, equivalent to an annualized rate of 7.2%. The lowest value was recorded in 2018 at 1 229 M $ US, which also saw the largest decline of 0.5%.

Annual dynamics of production in MERCOSUR in value, 2017-2020, M $ US

Exports beef, sheep or goat fat from MERCOSUR

Exports in kind, K t

MERCOSUR's exports of beef, sheep, or goat fat in volume terms increased for the second year in a row. In 2020, exports reached 148.5 K t, up 17.2% from 2019. Over the 2017-2020 period, exports grew by 16.4%, with an average annual growth rate of 5.2%. The lowest export volume was recorded in 2018 at 122.8 K t, which also experienced the largest decline of 3.8%.

Annual dynamics of product's exports from MERCOSUR in kind, 2017-2020, K t

The country composition of MERCOSUR's exports in volume terms from 2017 to 2020 was highly dispersed. The Netherlands accounted for 16.3% of exports, Nigeria for 5.7%, and South Africa for 5.2%, together forming just 27.3% of total flows. The remaining 72.7% was distributed among a wide range of other destinations.

Structure of product's exports in kind by countries, 2017-2020

World map of product's exports from MERCOSUR in kind, 2017-2020

Exports in value, M $ US

MERCOSUR's exports of beef, sheep, or goat fat in value terms increased for the second consecutive year. In 2020, exports amounted to 111.6 M $ US, marking a steep advance of 33.0% compared to 2019. Over the 2017-2020 period, export value rose by 25.1%, with an average annual growth rate of 7.8%. The lowest value was recorded in 2018 at 77.8 M $ US, which also saw the largest decline of 12.8%.

Annual dynamics of product's exports from MERCOSUR in value, 2017-2020, M $ US

An analysis of MERCOSUR's exports in value terms from 2017 to 2020 reveals a broad distribution across many markets. The Netherlands accounted for 14.7% of exports, China for 6.2%, and South Africa for 5.3%, together representing only 26.3% of total flows. A significant 73.7% was attributed to other trading partners.

Structure of product's exports in value by countries, 2017-2020

World map of product's exports from MERCOSUR in value, 2017-2020

Imports beef, sheep or goat fat to MERCOSUR

Imports in kind, K t

MERCOSUR's imports of beef, sheep, or goat fat in volume terms showed noticeable fluctuations during the period. Imports bottomed in 2018 and peaked in 2020, with a two-fold difference between these years. In 2020, imports were recorded at 86.0 K t, indicating a sharp advance of 84.3% year-over-year. The lowest import volume was in 2018 at 42.4 K t, which also experienced the largest decline of 13.4%.

Annual dynamics of product's imports to MERCOSUR in kind, 2017-2020, K t

From 2017 to 2020, the United States was the main source of beef, sheep, or goat fat imports to MERCOSUR, accounting for 8.5% of total imports in volume terms.

Structure of product's imports in kind by countries, 2017-2020

World map of product's imports to MERCOSUR in kind, 2017-2020

Imports in value, M $ US

MERCOSUR's imports of beef, sheep, or goat fat in value terms exhibited an unstable trend throughout the timeframe. Imports reached their lowest point in 2018 and their highest in 2020, with a 2.1-fold variation between these years. In 2020, import value totalled 70.7 M $ US, up 88.9% from the previous year. The minimum value was recorded in 2018 at 33.4 M $ US, which also saw the largest decline of 15.9%.

Annual dynamics of product's imports to MERCOSUR in value, 2017-2020, M $ US

From 2017 to 2020, the United States formed the largest share of MERCOSUR's imports in value terms of beef, sheep, or goat fat, taking 9.6% of total flows.

Structure of product's imports in value by countries, 2017-2020

World map of product's imports to MERCOSUR in value, 2017-2020