10/07/2024 (Oils & Fats International) - The US government is opening the door to Brazilian imports of used cooking oil (UCO) by accepting international certification for the product, Bloomberg reports from a joint statement by the South American country’s ministries of foreign affairs and agriculture.

To meet US requirements, the Brazilian government would issue certification of traceability, identity and origin of its UCO shipments, the 20 June report said.

The move would further impact US soyabean producers and crushing companies who were facing increased competition from imported biofuel feedstocks, including UCO and tallow, Bloomberg wrote.

Increased imports had weighed on soyabean oil prices, reducing profits for leading producers such as Bunge and Archer Daniels Midland (ADM) and affecting expansion plans, the report said.

According to the US International Trade Commission, US imports of UCO more than tripled in 2023 compared to the previous year, with more than half shipped from China.

The increase in UCO imports from China had raised concerns that some shipments were allegedly fraudulent, Bloomberg wrote.

US trade groups and biofuel representatives have been calling for tighter regulation of imports, including improved methods of testing UCO purity, while a US soyabean trade association had also called for an increased tariffs on Chinese UCO, the report said.

Meanwhile, US purchases of Brazilian tallow had increased by 377% in the first four months of 2024 compared to the previous year, as US biofuel producers looked overseas for feedstocks, Bloomberg wrote.

https://www.ofimagazine.com/news/usa-clears-way-for-imports-of-brazilian-used-cooking-oil