SAO PAULO (Reuters) – The use of bovine sebum for biodiesel production in Brazil should increase, with higher local consumption compensating for a likely drop in US import demand after imposing tariffs on Brazilian beef and its by -products, sources from the sector said.
Brazilian exports of beef have increased from January to July thanks to strong US demand. With 290.8 thousand tons boarded in the period, the country sold almost 91% of the total exported in 2024, told the Reuters Scot Consultoria, headquartered in Bebedouro.
The US accounted for almost 98% of shipments, according to Scot data.
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But now, a 50% US import tariff on certain Brazilian products will make Brazilian beef sales “prohibitive” in that market, André Nassar said, president of the Brazilian Association of Vegetable Oil Industries (Abiove), in an interview.
However, he noted that Brazilian demand can partially mitigate the impact of reducing exports to the US, citing future bovine sebum purchases by biodiesel companies, including vertically integrated refrigerators that produce fuel, but do not internally process raw materials in sufficient quantity.
Abiove represents soy processors, which is used to produce 75% of Brazil’s biodiesel.
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Sebo bovino
Brazil’s bovine tallow exports gained rhythm after a sharp drop in US cattle herds, which reduced local production and directed demand to Brazilian suppliers.
Alcides Torres, founder of Scot, said that possibly exports increased by July because exporters accelerated shipments before tariff increases.
“But these are palliative measures,” he said, noting that the current fare is practically “an embargo” to beef exports and by -products going forward.
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With the application of the new fare after August 6, Torres said that Brazilian exporters could send products to neighboring countries, which would then be re -exported to the US, thus avoiding heavy tariffs.
The strategy can expand the base of international buyers in Brazil and at the same time help maintain exported volumes, Torres said.
