U.S. imports of animal fats (edible tallow, inedible tallow, lard and poultry fats), greases, and processed oils—including used cooking oil—skyrocketed to nearly 5billion pounds in 2023 from 2.2 billion pounds in 2022.
This surge in imports has been driven by rising domestic production of biomass-based diesel (fuels derived from animal fats and vegetable oils) to meet U.S. federal and state policies aimed at reducing greenhouse gas emissions. These policies sparked new demand for animal fats, processed oils and grease and have boosted imports, especially processed oil imports commonly known as used cooking oil (UCO).
Processed oil imports doubled to 3 billion lbs. from 2022 to 2023 as China emerged as the top supplier. U.S. tallow imports also have increased, largely on expanded sourcing from Australia, Canada, Brazil and Argentina.
With stronger tallow and processed oil imports, the share of animal fats, waste oils and greases as a portion of total oil and fat-related used in biomass-based diesel production has increased to 36% from 31% in 2021, while vegetable oil’s share has declined.
As biofuel use continues growing, this structural shift in biomass-based diesel production and import markets is expected to affect the domestic use and trade flows of animal fats and vegetable oils.— USDA Economic Research Service
