Lard and poultry fats market in MERCOSUR

Earlier Report Observations

The market volume for lard and poultry fats in MERCOSUR grew consistently from 596.3 thousand tons in 2018 to 782.3 thousand tons in 2023. Production increased from 600.5 thousand tons to 790.6 thousand tons over this period, while exports remained relatively small but showed an upward trend, particularly in 2023.

In value terms, the market expanded from 567 million US dollars in 2018 to 975 million US dollars in 2023, with a notable peak of 1 182 million dollars in 2022 reflecting higher prices or increased value per ton. The physical volume growth was accompanied by a rise in export value, reaching 10 million dollars in 2023.

Key developments in 2024 included the signing of the EU-MERCOSUR agreement in December, establishing tariff quotas for pork and poultry meat that directly affect trade access for animal fats. Additionally, Argentina's pork chain saw sustained growth, and the country recovered from Highly Pathogenic Avian Influenza outbreaks detected earlier in the year, which had temporarily affected poultry production and exports. New market openings, such as Ecuador for Brazilian poultry and ruminant fats, further supported export opportunities.

Production lard and poultry fats in MERCOSUR

In kind, 2017-2020, K t

Top producers of lard and poultry fats, 2017-2020

World map of production of lard and poultry fats, 2017-2020

Lard and poultry fats production in MERCOSUR has increased for the third consecutive year. In 2020, the region produced 670.9 thousand tons, marking a 7.7% rise compared to 2019. From 2017 to 2020, production grew by 16.2%, which translates to an annualized growth rate of 5.1%.

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

In value, 2017-2020, M $ US

In 2020, the output of lard and poultry fats in MERCOSUR was valued at 682.8 million US dollars, down 0.7% from the previous year. Over the period from 2017 to 2020, production value increased by 3.3%, with an annualized rate of 1.1%. The lowest value was recorded in 2018 at 570.7 million US dollars, while the highest was in 2019 at 687.9 million US dollars. The largest decline occurred in 2018, dropping by 13.7%, and the largest increase was in 2019, rising by 20.5%.

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

Exports lard and poultry fats from MERCOSUR

Exports in kind, t

In 2020, cross-border shipments of lard and poultry fats from MERCOSUR reached 3 557 tons, showing a sharp increase of 37.1% compared to the previous year. From 2017 to 2020, exports grew by 16.8%, equating to an annualized rate of 5.3%. The lowest volume was recorded in 2019 at 2 595 tons, and the highest was in 2018 at 4 252 tons. The largest decline occurred in 2019, falling by 39.0%, while the largest increase was in 2018, rising by 39.6%.

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

From 2017 to 2020, Bolivia consistently accounted for 82.4% of total exports in kind, indicating a high concentration on this market, with the remaining share distributed among other countries.

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, K $ US

In 2020, lard and poultry fats exports from MERCOSUR stood at 3 620 thousand US dollars, indicating a 26.4% increase relative to the prior year. Over the period 2017-2020, exports increased by 3.8%, with a compound annual growth rate of 1.3%. The minimum value was recorded in 2019 at 2 865 thousand US dollars, and the maximum was in 2018 at 4 041 thousand US dollars. The largest decline occurred in 2019, dropping by 29.1%.

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

From 2017 to 2020, Bolivia remained the dominant partner for exports in value terms of lard and poultry fats from MERCOSUR, with a share of 86.6% of total flows, while other markets formed a long tail.

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

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

Imports lard and poultry fats to MERCOSUR

Imports in kind, t

There were noticeable fluctuations in market performance during the period. The lowest volume was recorded in 2018, while the highest occurred in 2019, with a peak-to-trough ratio of 2 880 times. MERCOSUR imported approximately 43 tons of lard and poultry fats in 2019, which is 287 899.6% higher than in the previous year. The minimum value was recorded in 2018 at 0.0 tons, and the largest decline occurred in 2018, falling by 88.9%.

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

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, K $ US

Volatility characterized the market behavior during these years. The lowest imports were noted in 2018, with the highest in 2019, reflecting a 122-fold gap. In 2019, cross-border shipments of lard and poultry fats to MERCOSUR stood at 50 thousand US dollars, representing a 12 125.0% rise compared to 2018. The minimum value was recorded in 2018 at 0.4 thousand US dollars, and the largest decline occurred in 2018, dropping by 76.1%.

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

From 2017 to 2020, France and Spain stood out as the main suppliers of lard and poultry fats to MERCOSUR, together forming 4.1% of total imports in value terms.

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

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