Lard and poultry fats market in South America

Earlier Report Observations

The market volume for lard and poultry fats in South America grew consistently from 673.8 thousand tons in 2018 to 851.3 thousand tons in 2023. This expansion was propelled by the robust growth of pork and poultry production, which benefited from sustained investments in quality and traceability, favorable natural conditions, and the increasing competitiveness of pork relative to beef from 2019 onward. Record pork exports, especially to China, pushed output to new highs in 2021 and 2022, while the animal feed industry expanded significantly throughout the period, supporting overall livestock production.

Market value followed a different trajectory, rising from $770 million in 2018 to a peak of $1 484 million in 2022 before falling to $1 139 million in 2023. The earlier surge was driven by substantial cost pressures as prices for corn and soybean meal—key feed inputs representing over 75% of feeding costs—rose sharply due to global trade tensions and the broad inflation triggered by the COVID-19 pandemic in the animal protein sector. However, a decline in feed input costs from mid‑2023, together with greater availability of lower‑priced beef, reduced price pressures and led to a contraction in the total market value.

Throughout the period, the industry maintained a focus on efficiency, animal welfare, and sustainability, which helped stabilize production volumes even as costs fluctuated. Strong international demand, with export markets diversifying to include Mexico and South Korea, continued to support market volume, while domestic competition from beef influenced price dynamics in the later years.

Production lard and poultry fats in South America

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

South America's production of lard and poultry fats has increased for the third consecutive year. In 2020, the region produced 729.7 thousand tons, marking a modest 6.5% rise compared to 2019. Looking at the period from 2017 to 2020, production grew by 13.8%, which translates to an average annual growth rate of 4.4%.

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

In value, 2017-2020, M $ US

The value of lard and poultry fats production in South America has also risen for the third year in a row. In 2020, output was valued at 928.1 million US dollars, showing a solid 20.8% improvement over 2019. From 2017 to 2020, production value increased by 21.7%, with a compound annual growth rate of 6.8%.

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

Exports lard and poultry fats from South America

Exports in kind, t

In 2020, South America exported 2,846 tons of lard and poultry fats, up 10.1% from 2019. However, over the period from 2017 to 2020, exports decreased by 3%, averaging a 1.0% annual decline. The lowest export volume was recorded in 2019 at 2,587 tons, while the peak occurred in 2018 with 3,524 tons. The largest year-on-year increase was 20.1% in 2018, and the biggest drop was 26.6% in 2019.

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

From 2017 to 2020, Cuba and South Africa consistently held leading positions in South America's export structure for lard and poultry fats in volume terms, together accounting for 4.0% of total exports.

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, K $ US

In 2020, South America's exports of lard and poultry fats in value terms reached 3,621 thousand US dollars, a substantial 24.8% increase from the previous year. Over the 2017-2020 period, export value grew by 3.8%, with an average annual rate of 1.3%. The lowest value was recorded in 2019 at 2,900 thousand US dollars, while the highest was in 2018 at 4,041 thousand US dollars. The largest decline occurred in 2019, falling by 28.2%.

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

Between 2017 and 2020, Cuba and South Africa were the primary destinations for South America's lard and poultry fats exports in value terms, together representing 3.7% of total export 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 lard and poultry fats to South America

Imports in kind, t

The import market for lard and poultry fats in South America showed an unstable trend from 2017 to 2020. Imports reached their lowest point in 2019 at 7,192 tons and peaked in 2020 at 12,867 tons, resulting in a 1.8-fold difference between these years. In 2020, imports surged by 78.9% compared to 2019. The largest decline was recorded in 2019, dropping by 25.1%.

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

From 2017 to 2020, the main suppliers of lard and poultry fats to South America in volume terms were the United States (46.2% of imports), the United Kingdom (5.0%), and Saudi Arabia (4.4%). Together, these three countries accounted for 55.5% of total imports.

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, K $ US

South America's imports of lard and poultry fats in value terms experienced noticeable fluctuations from 2017 to 2020. The lowest value was recorded in 2017, while the highest was in 2020, with a 1.8-fold variation between these years. In 2020, imports amounted to 12,147 thousand US dollars, a 71.8% increase from the previous year. The largest decline occurred in 2019, falling by 18.4%.

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

During the 2017-2020 period, lard and poultry fats imports to South America were sourced from many different markets. Even the largest suppliers—the United States, the United Kingdom, and Saudi Arabia—together represented only 47.1% of total imports in value terms.

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

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