REAM 2026: Fishmeal shortage, export demand and low-carbon feedstocks reshape South American rendering markets

The South American rendering industry gathered in Mendoza, Argentina, for the Reunion of the Americas, or REAM, on 8–10 September 2026. According to Fastmarkets, which covered the event, discussions highlighted the effects of tightening fishmeal supply, expanding export demand for animal protein meals, and shifting trade conditions for low-carbon feedstocks across the region.

Fishmeal shortage accelerates protein substitution

Prolonged disruption to Peruvian fishing has reduced fishmeal availability and sharply increased prices, prompting feed manufacturers across South America to reassess protein inclusion rates and reformulate diets, according to Fastmarkets. The substitution effect has been particularly evident in aquaculture feed, where formulations offer greater flexibility than in pet food, which is often constrained by label declarations and specific ingredient requirements. Products including meat-and-bone meal (MBM), poultry by-product meal, feather meal and tilapia meal have benefited as buyers seek more economical protein sources.

China access and Southeast Asia demand support Brazilian protein meal values

The recent authorisation of Brazilian poultry by-product meal exports to China, combined with record and steadily increasing shipments of bovine MBM to Southeast Asian and South American markets, has created an additional outlet for domestic production, Fastmarkets reported. According to sources cited by Fastmarkets, the expansion of exports has helped support local prices by reducing the volume available to domestic consumers and improving demand fundamentals across the broader feed ingredient complex.

Brazilian fishmeal narrows discount to Pacific material

Brazilian fishmeal prices have risen sharply as regional and international buyers compete for limited supply, reducing the product's traditional discount to some Pacific-origin material. Brazilian export indications were reported at $2,200–2,300 per tonne FOB during REAM, while Fastmarkets assessed standard steam-dried Peruvian fishmeal with a minimum protein content of 65–66% at $3,325–3,375 per tonne FOB on 10 September, implying a discount of around $1,025–1,175 per tonne to the Peruvian benchmark. Sources said, however, that the gap was narrower when Brazilian material was compared with some other Pacific-origin qualities and offers. Fastmarkets noted that much of Brazil's production is derived from farm-raised fish, particularly tilapia, and can differ from marine-origin meal in protein content, species composition and end-use applications, making the comparison not necessarily like-for-like. Nevertheless, market participants said these values remain a useful reference point for assessing relative market dynamics, noting that Brazilian fishmeal was approaching price levels seen for some Pacific-origin products.

Argentine tallow exporters adapt to Brazil's reduced export presence

Argentina's tallow exporters have started lowering price expectations despite the beginning of the country's seasonal export period, with Brazil's tariff-driven reduced presence creating logistical challenges rather than an automatic advantage for Argentine suppliers. Brazil's tariff disadvantage has largely removed the country as a major near-term supplier to the US market, but it has also reduced opportunities to use Argentine material to top off larger cargoes originating at Brazilian ports. Without those volumes, assembling a vessel exclusively in Argentina becomes more expensive and may require several exporters to combine positions, specifications and loading windows, Fastmarkets reported.

Some Argentine renderers have also started offering higher-acidity material, giving exporters greater flexibility to blend different grades and approach a broader pool of buyers. Fastmarkets noted that low acidity can support a premium in Argentina's food market, but it carries less economic value for US biofuel refiners equipped to process higher-FFA feedstocks — the context underpinning the shift toward higher-acidity offerings.

Colombia's UCO sector cited as regional benchmark

Market participants at REAM highlighted Colombia as one of the most developed and structured used cooking oil (UCO) markets in South America, citing higher levels of collection efficiency and organisation compared with neighbouring countries such as Brazil and Argentina. Sources told Fastmarkets that Colombia has built a more mature collection network and supply chain. By contrast, traceability challenges in Brazil and Argentina, where fragmented collection systems and a larger informal market continue to limit transparency, make it more difficult to verify feedstock origins in those countries, according to the report.

Firm demand supports technical corn oil prices in Brazil and Argentina

Technical corn oil prices have strengthened in both Brazil and Argentina amid firm European demand for renewable fuel feedstocks, Fastmarkets reported. Brazilian exports remain significantly larger, supported by the scale and continued expansion of the country's corn ethanol industry. Argentina's market is described as developing, but available volumes are not yet sufficient for the country to become a significant standalone supplier to Europe.

Regional markets become increasingly interconnected

Market talks at REAM showed that South American rendered-product markets are becoming increasingly interconnected, with disruptions in one region quickly redirecting trade flows across multiple countries, Fastmarkets reported. Tariffs, sanitary approvals and certification requirements were identified as factors that frequently influence international trade routes, product availability and pricing dynamics throughout the region. Participants said domestic prices are no longer driven solely by local supply and demand fundamentals, making access to broader market intelligence increasingly important