In Q1 2024, tallow oil prices had averaged USD 1,120 per metric ton globally, while prices in the USA had reached USD 1,290 per metric ton. The increase had been driven by disruptions in production due to tight livestock supplies, logistical delays, and severe weather in key cattle-producing regions, which had led to a 500,000 metric ton production decrease. Strong demand from biodiesel, animal feed, and personal care sectors had further pushed prices higher, creating uncertainty in procurement strategies.
In the first half of Q2 2024, the market remained under pressure due to ongoing livestock supply challenges and transportation bottlenecks. While biodiesel demand had stayed robust, production had shown signs of recovery by May, easing logistical issues. Prices had stabilized modestly, but the market had remained cautious due to potential supply disruptions.
By August 2024, tallow oil prices have averaged USD 1,210 per metric ton, reflecting ongoing supply tightness. While production has improved, slow livestock recovery and rising demand from biodiesel and animal feed industries have kept supply constrained. Logistics challenges have persisted, with demand from cosmetics and industrial applications continuing to support higher prices.
Looking ahead to Q4 2024, tallow oil production will have recovered gradually as livestock supplies stabilize and logistical issues ease. However, volatility will have persisted due to factors such as livestock production fluctuations, government regulations, and sustained biodiesel demand. Climate change impacts on agriculture and livestock will have remained a key risk, requiring companies to have adjusted procurement strategies accordingly.