Tallow market in Brazil

Earlier Report Observations

From 2018 to 2020, Brazil's tallow production remained stable at around 1,100 thousand tonnes annually, supported by the country's large livestock processing sector. The market was heavily oriented towards domestic biodiesel production, which accounted for about 65% of tallow use, under a regulatory framework established by Decree 9.013/2017. In 2019, Law 5.403/2019 introduced stricter rules for meat retailers, potentially affecting raw material supply chains. Market volume grew to 1,190 thousand tonnes in 2020 but fell back to 1,132 thousand tonnes in 2021, with production dipping to 1,076 thousand tonnes.

A market shift occurred from 2022, when Brazil transitioned from a net importer to a net exporter of tallow due to surging external demand, particularly from the United States. This transformation was accompanied by the development of export price indicators. Despite a drop in production to 993 thousand tonnes in 2022, output recovered to 1,082 thousand tonnes in 2023 as major player JBS committed to supplying tallow for Sustainable Aviation Fuel (SAF) production. Domestic demand was further bolstered by legislation mandating an increase in the biodiesel blend to B20 by 2030, prompting investments like JBS Biopower's R$ 140 million upgrade for biodiesel production using tallow. Market volume declined to 885 thousand tonnes in 2023 as exports skyrocketed to 245 thousand tonnes.

The export momentum accelerated in 2024, with Brazilian tallow shipments reaching record volumes—up 136% in the first eight months compared to 2023—driven by robust US demand and incentives under US biofuel programs. Brazil emerged as the largest supplier of tallow to the US, with American purchases rising 377% in early 2024. Domestic policies, including an increase in the biodiesel blend to B14 in 2024, supported internal consumption and prices, which peaked at R$ 5.15/kg in August 2024. The tallow market remains highly valued, with heated domestic and external demand, and investments in international certifications for better pricing and access to hydrated vegetable oil and sustainable aviation fuel markets.

Production tallow in Brazil

In kind, 2018-2021, K t

Between 2018 and 2021, Brazil was the world's second-largest producer of tallow.

Top producers of tallow, 2018-2021

World map of production of tallow, 2018-2021

Brazil's tallow production saw a two-year increase before declining. In 2021, production reached 1 076 K t, marking a slight decrease of 2.3% compared to 2020. The peak was recorded in 2020 at 1 101 K t, while the largest annual growth occurred in 2019 with a 1.3% increase.

Annual dynamics of production in Brazil in kind, 2018-2021, K t

Exports tallow from Brazil

Exports in kind, t

The market showed an unstable trend over this period. Exports hit their lowest point in 2018 and reached their maximum in 2021, with a 10.9-fold difference between these years. In 2021, Brazil's tallow exports totaled 22 453 t, a significant 304.4% increase from the previous year. The largest decline was recorded in 2020 at 46.8%, while the largest increase occurred in 2019 with a 408.5% surge.

Annual dynamics of product's exports from Brazil in kind, 2018-2021, t

From 2018 to 2021, the main buyers of Brazilian tallow were the United States (24.2% of exports in kind), China (17.1%), and the Netherlands (13.4%). Together, these three countries accounted for 54.7% of total exports in kind.

Structure of product's exports in kind by countries, 2018-2021

World map of product's exports from Brazil in kind, 2018-2021

Exports in value, K $ US

The market exhibited an unstable trend throughout the timeframe. Export volumes reached their lowest point in 2018 and peaked in 2021, with a 17-fold difference between these years. In 2021, tallow shipments from Brazil abroad reached 37 130 K $ US, reflecting a sharp increase of 334.3% compared to the previous year. The largest decline was recorded in 2020 at 6.4%.

Annual dynamics of product's exports from Brazil in value, 2018-2021, K $ US

During 2018–2021, China (25.9% of exports in value terms), the United States (23.3%), and Hong Kong (16.2%) formed the primary group of destinations for Brazilian tallow exports by value. Together, they represented 65.4% of total export flows.

Structure of product's exports in value by countries, 2018-2021

World map of product's exports from Brazil in value, 2018-2021

Imports tallow to Brazil

Imports in kind, t

After a two-year rise, tallow imports into Brazil declined. In 2021, imports totaled 78 766 t, which is 17.1% lower year-over-year. Between 2018 and 2021, imports increased by 48.4%, equating to an annualized growth rate of 14.1%. The peak was recorded in 2020 at 95 011 t, with the largest annual increase also occurring in 2020 at 62.4%.

Annual dynamics of product's imports to Brazil in kind, 2018-2021, t

Over 2018–2021, Paraguay (53.7% of imports in kind), Uruguay (19.7%), and Argentina (13.7%) were the top suppliers of tallow to Brazil. Their combined share reached 87.1% of total imports in kind.

Structure of product's imports in kind by countries, 2018-2021

World map of product's imports to Brazil in kind, 2018-2021

Imports in value, K $ US

Tallow imports into Brazil increased for the third consecutive year. In 2021, Brazil imported 73 583 K $ US worth of tallow, reflecting a robust 11.4% increase compared to 2020. Over the period 2018-2021, imports grew by 143.7%, with a compound annual growth rate (CAGR) of 34.6%.

Annual dynamics of product's imports to Brazil in value, 2018-2021, K $ US

From 2018 to 2021, Paraguay (54.0% of imports in value terms), Uruguay (20.9%), and the United States (12.1%) remained the principal suppliers of tallow to Brazil. Together, they accounted for 86.9% of total imports in value terms.

Structure of product's imports in value by countries, 2018-2021

World map of product's imports to Brazil in value, 2018-2021