European animal fat prices jump 10% on US demand and vegetable oil rally

European animal fat prices rebounded strongly in March and continued rising in April after nearly six months of stagnation and declining trends. The market was supported by stronger demand, the return of US buyers, and a sharp rally in vegetable oil prices driven by the Middle East conflict and higher crude oil prices. According to Fastmarkets, prices for 5–15% free fatty acid animal fats on an FOB ARA (Amsterdam–Rotterdam–Antwerp) basis increased by more than €100/t month-on-month to €910–1,050/t for April–June loading.

Another major driver came from US biofuel producers returning to the import market after the US Environmental Protection Agency (EPA) announced record-high Renewable Volume Obligations (RVOs) for 2026/27. The decision pushed domestic US animal fat prices sharply higher and increased demand for imported feedstocks from Europe.

Market participants also reported stronger buying interest from the pet food, animal feed, and oleochemical industries. With vegetable oil prices rising significantly, many buyers began partially substituting vegetable oils with animal fats, supporting trading activity across Europe.

Demand remains firm for July shipments as well, with offers reported at €1,100–1,110/t FOB ARA. The market is also being supported by reduced South American supplies to Europe, as Brazilian tallow flows have increasingly shifted toward the US market.

Fastmarkets additionally reported further gains in Northwest Europe price assessments. Category 3 mixed animal fat prices rose to €990/t DDP, up 9.4% compared to early March, while category 3 bone fat prices increased to €1,040/t, gaining more than 7% over the same period.

Tags: edible oils