Beef, sheep or goat fat market in South America

Earlier Report Observations

From 2018 to 2023, the physical volume of the beef, sheep, and goat fat market in South America showed initial growth followed by a contraction. The increase in market size to 2.1 million metric tons in 2020 was supported by a reported expansion of the national goat and sheep herd to approximately 11.3 million heads in 2019, which bolstered domestic production. During this period, the sector's traditional focus remained on internal demand, with major production hubs in the Northeast, South, and Southeast regions providing competitive costs.

A pivotal shift began in 2020 when producers actively pursued Halal certification to access export markets, particularly in the Middle East. This strategic move aligned with a sustained rise in export volumes, which grew from 122,000 metric tons in 2018 to 504,000 metric tons in 2023. The reorientation toward exports contributed to a gradual reduction in domestic market volume after 2021, as more production was directed abroad. In value terms, the market grew steadily until 2022, reaching $3.6 billion, partly reflecting the higher valuation of specialty fats used in regional and gourmet cuisine.

The market structure continued to be influenced by regional breeding traditions and the potential for value-added products. Despite the overarching focus on the domestic sector, the pursuit of export certification provided a new channel for growth, helping to offset the gradual decline in local consumption volume over the later years of the period.

Production beef, sheep or goat fat in South America

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

South America's production of beef, sheep, or goat fat declined after two years of growth. In 2020, output remained relatively stable at 2,161 thousand tonnes. Between 2017 and 2020, production increased by 14.1%, averaging 4.5% annually. The highest production level was recorded in 2019 at 2,169 thousand tonnes, with the largest annual increase occurring in 2018 at 9.2%.

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

In value, 2017-2020, M $ US

South America's production value of beef, sheep, or goat fat increased for the second consecutive year. In 2020, output was valued at 1,629 million US dollars, marking a solid 13.6% year-over-year improvement. From 2017 to 2020, production value grew by 22.1%, averaging 6.9% annually. The lowest value was recorded in 2018 at 1,321 million US dollars, which also saw the largest decline of 1.1%.

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

Exports beef, sheep or goat fat from South America

Exports in kind, K t

South America's exports of beef, sheep, or goat fat increased for the second year in a row. In 2020, exports reached 153.9 thousand tonnes, a significant 19.2% gain compared to 2019. Over the 2017-2020 period, exports grew by 21.4%, with a compound annual growth rate of 6.7%. The lowest export volume was in 2018 at 122.0 thousand tonnes, which also experienced the largest decline of 3.8%.

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

Analysis of export volumes from 2017 to 2020 shows a broad distribution across many markets. The Netherlands accounted for 16.0% of exports, Nigeria for 5.6%, and South Africa for 5.1%. Together, these three countries represented only 26.8% of total flows, with the remaining 73.2% going to other trading partners.

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

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

Exports in value, M $ US

Beef, sheep, or goat fat exports from South America increased for the second consecutive year. In 2020, export value reached 116.0 million US dollars, indicating an intense 35.8% year-over-year gain. Between 2017 and 2020, export value grew by 29.9%, averaging 9.1% annually. The lowest value was recorded in 2018 at 77.9 million US dollars, which also saw the largest decline of 12.8%.

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

From 2017 to 2020, export values of beef, sheep, or goat fat from South America were distributed across a large number of markets. The Netherlands accounted for 14.5% of export value, China for 6.2%, and South Africa for 5.3%. Together, these three markets represented only 25.9% of total flows.

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

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

Imports beef, sheep or goat fat to South America

Imports in kind, K t

The data reveals irregular changes, indicating a volatile market environment. Imports bottomed in 2019 and peaked in 2020, with a 1.8-fold difference between these years. In 2020, South America's import volume of beef, sheep, or goat fat totaled 97.5 thousand tonnes, which is 83.0% higher than the previous year. The minimum value was recorded in 2019 at 53.3 thousand tonnes, while the largest decline occurred in 2018 at 12.5%.

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

Throughout 2017 to 2020, the country structure of import volumes was largely shaped by the United States and Canada, which together accounted for 15.3% of total flows.

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

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

Imports in value, M $ US

South America's import value of beef, sheep, or goat fat increased for the second consecutive year. In 2020, imports totaled 80.2 million US dollars, up by 68.9% compared to the previous year. Over the 2017-2020 period, import value increased by 47.2%, with a compound annual growth rate of 13.8%. The minimum value was recorded in 2018 at 46.4 million US dollars, which also experienced the largest decline of 14.8%.

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

Throughout 2017 to 2020, the United States and Canada formed the core group of markets for import values, jointly accounting for 17.8% of total flows.

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

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