Cargill Studies Beef Tallow for Brazil Biodiesel as US Tariffs Bite

BioRefineries/Renewable Fuel Production Business News/Analysis

June 18, 2026

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by Roberto Samora and Fernando Cardoso (Reuters) Cargill is studying the feasibility of using beef tallow to produce biodiesel in Brazil, a ‌trader for the firm said on Tuesday (June 16, 2026), as U.S. tariffs have made exports of the animal fat less attractive.

The U.S.-based company does not currently use ⁠beef tallow, but has a project to assess its viability, trader Paulo Cardoso said at an event in Sao Paulo
One of three biodiesel plants Cargill acquired from Brazilian firm Granol in 2023 previously used tallow, indicating no operational constraints
Soybean ‌oil ⁠is Brazil's main biodiesel feedstock, while beef tallow ranks third nationwide
U.S. tariffs on Brazilian beef tallow stand at 10% but could ⁠rise, meat packers association Abrafrigo recently said
U.S. taxation "opened eyes" to the need to seek out ⁠new markets for tallow, Cardoso said, noting Cargill's Brazil unit previously acted ⁠as a major tallow exporter to the U.S. READ MORE

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THE POTENTIAL USE OF BEEF TALLOW FOR BIODIESEL PRODUCTION IN BRAZIL (ResearchGate)
Cargill Explores Beef Tallow for Brazil Biodiesel Amid US Tariffs -- Shifting Strategies in Biofuel Feedstocks as Trade Barriers Rise (AcademicJobs)
INTERVIEW: Brazil's Be8 shifts to other residual fats as tallow exports soar (S&P Global)

Excerpt from ResearchGate: Biodiesel has been presented worldwide as a viable alternative to petroleum-based fuels. In 2018, the main raw materials in this Brazilian sector was soybean (70.52%) and beef tallow (13.4%). The Brazilian mandatory biodiesel-diesel blend is currently (2021) 10% (B10), but B20 is estimated for 2030. Additionally, the National Program for the Production and Use of Biodiesel (PNPB) intends to promote the diversification of raw materials in the energy matrix, where the beef tallow - a residue of the beef production - has been increasing importance. Brazil presents as the global largest commercial beef producer and exporter. Then, the use of beef tallow would allow the expansion of biodiesel production without fuel x food competition and provide a nobler use than disposal for it. In this sense, this article analyzes, through a review, the potential of beef tallow for biodiesel production in Brazil. This raw material has price, quantity and quality for generating a biodiesel in the specifications required by regulatory agencies. Therefore, beef tallow is a potential raw material for the expansion of the biodiesel sector in Brazil and this experience can be useful for other countries. READ MORE

Excerpt from AcademicJobs: Understanding Beef Tallow as a Biodiesel Feedstock
Beef tallow, a rendered form of beef fat derived from cattle processing, serves as a viable raw material for biodiesel. In Brazil, the world's leading beef producer and exporter, this byproduct offers an alternative to traditional feedstocks like soybean oil. Industry data positions beef tallow as the third most used feedstock for biodiesel nationally, behind soybean oil and other vegetable oils. Its use helps diversify raw material sources and reduces reliance on food crops for fuel production, aligning with broader goals of sustainable biofuel expansion.

Cargill's Strategic Assessment in Brazil
According to trader Paulo Cardoso from Cargill, the company is actively evaluating the potential integration of beef tallow into its Brazilian biodiesel operations. Although Cargill does not currently employ beef tallow in its processes, one of the three biodiesel plants it acquired from Brazilian firm Granol in 2023 has prior experience with the material. This existing infrastructure suggests minimal technical barriers to adoption if the project advances. Cardoso noted that the assessment aims to determine viability under current market conditions shaped by international trade barriers.

The Role of U.S. Tariffs in Driving Domestic Focus
U.S. import duties on Brazilian beef tallow currently stand at 10 percent, with potential for further increases according to statements from Brazil's meat packers association, Abrafrigo. These tariffs have made continued large-scale exports to the American market less economically viable for many producers. Brazilian exporters previously benefited from strong U.S. demand for tallow as a biodiesel feedstock, but recent policy shifts have prompted companies like Cargill to explore local utilization instead. This adjustment reflects a broader industry response to protect margins and maintain supply chain resilience. READ MORE

Excerpt from S&P Global:

Producer shifts feedstock mix away from beef tallow
California biodiesel shipments seen resuming Q4 2026
Marialva soybean crush project parked; B16 mandate delay 'frustrating'

Brazilian biodiesel producer Be8 is shifting away from beef tallow toward other residual feedstocks as the animal fat returns to the export market, Commercial Director Ricardo Reckziegel told Platts in an interview at the Fenagra conference held in São Paulo.

The producer has specialized in processing various animal fats and oils, including technical corn oil, allowing it to maintain its residual feedstock share in its mix without competing for beef tallow volumes diverted to exports.

"It doesn't make sense for us to fight for a feedstock just for the sake of using it," Reckziegel said, pointing to this year's record soybean crop and strong crushing activity as sources of ample soybean oil supply.

Be8's feedstock mix is currently around 70% vegetable oil and 30% residual fats and oils, the executive said. According to ANP data, soybean oil accounted for 72% of Brazil's biodiesel feedstock mix in March, while beef tallow represented around 7%, and used cooking oil, 1%.

Brazilian beef tallow exports recovered to 35,943 metric tons in April, the highest monthly volume since August 2025, with 98.46% directed to the US, according to Brazil's Foreign Trade Secretariat. Export margins have been supported by firm US feedstock values, higher energy prices, and the US Renewable Fuel Standard 2026-27 proposal, which included record biomass-based diesel and advanced biofuel targets.

California window seen reopening in Q4; Europe route already running

While beef tallow already switched back to exports following bullish international energy markets, the switch for biodiesel exports requires more logistical organization, given the complexity of production, according to the director.

After exporting "good volumes" of biodiesel to the US in 2023 and 2024, Be8 saw shipments stall after the change in US administration and subsequent tariff measures. However, higher fossil diesel prices are making the US market attractive again, Reckziegel said, and the producer has used the export pause to secure a California Air Resources Board pathway certification.

Combined with the existing RIN incentive, the certification "will make this export even more viable," he said. Be8 expects shipments to California to resume in the fourth quarter of 2026, with some possibility of activity in the third quarter.

While the US route is being prepared, the European route is already running. Be8 was a pioneer in exporting technical corn oil, a coproduct of Brazil's expanding corn ethanol industry, but has increasingly redirected the feedstock to its own plants to produce biodiesel that qualifies under EU advanced-feedstock rules.

"We use the oil in specific plants to produce biodiesel eligible for European regulation, capturing a premium that makes the export route viable," Reckziegel said.

Marialva crush project parked

A planned soybean crushing plant in Marialva, Paraná, has been put on hold as Be8 prioritizes other investments, Reckziegel said. Recent acquisitions and the under-construction wheat ethanol unit in Passo Fundo have taken precedence for capital and engineering resources.

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Global soybean meal oversupply is an additional constraint. "Where do you place the [soybean] meal? Globally, there's a protein oversupply, so you need to develop markets that will take that product," Reckziegel said.

B16 mandate delay 'frustrating'

Furthermore, the Brazilian biodiesel sector is "frustrated" by the delay in implementing the B16 mandate, which was scheduled in law but has not been triggered, Reckziegel said. READ MORE