Australia's Tallow Exports Surge to Unprecedented Heights: A Record-Breaking Year Unveiled!

In January-November 2024, Australian tallow exports hit an all-time high, exceeding the total exports for all of 2023, marking a significant achievement in the industry and highlighting growing global demand.

In the period from January to November 2024, Australia achieved unprecedented levels of tallow exports, setting a new record that exceeded the total exports for the entire year of 2023. According to recent statistics from the Australian Bureau of Statistics (ABS) obtained through Global Trade Tracker (GTT), the nation exported 517,364 tons of tallow within the first eleven months of 2024. This figure eclipsed the earlier record of 504,409 tons recorded in 2023.

The surge in export numbers can be attributed to several factors, including an increase in the cattle population, heightened slaughter rates, and favorable weather conditions throughout the year. Additionally, the escalating demand from the biofuels sector has played a significant role in propelling tallow exports to these all-time highs.

Domestic cattle slaughter experienced a notable rise, reaching approximately 2.24 million head between July and September, marking the highest slaughter rates for that quarter since 2015. This increase is largely a result of the efforts undertaken by processors to enhance their operational capacities. Correspondingly, Australia's beef production soared to a record level of 690,694 tons during the same period, as reported by the ABS.

In terms of export destinations, more than 90% of Australian tallow was shipped to either Singapore or the United States within the same eleven-month timeframe. According to GTT data, Singapore accounted for approximately 53.2% of the exports, while the US received about 37.6%. This strong export performance highlights Australia's significant role in the global tallow market.

Market analysts have suggested that the trade dynamics for Australian tallow may shift notably towards the US this year. This is largely due to the recently issued guidance regarding the 45Z tax credit in the United States, which is expected to influence purchasing decisions. The price for lower carbon intensity feedstocks, such as tallow, has seen an uptick following this new guidance, making it a more attractive option for buyers. In contrast, imported used cooking oil will not be eligible for the tax credit, further positioning tallow favorably in the market.

As Australia continues to capitalize on its favorable agricultural conditions and growing biofuels market, the outlook for tallow exports remains promising. The confluence of increased production capabilities and robust international demand sets the stage for a potentially record-breaking year ahead, as the agricultural sector adapts to both domestic and global market trends.