Soap cost rises and industry complains about the use of bovine tallow in biofuel – 05/03/2023 – Panel SA

Abisa, the association that represents the soap industry, released a statement to express concern about the increase in the price of the product and to warn that new cost pressures may arise in the midst of the debate on biofuels.

According to the entity, the current discussion on the increase of biodiesel in the diesel mixture needs to take into account the reflections on the soap industry, whose price weighs on the basic basket and can harm the low-income population, the largest segment of soap consumption in bar.

The concern of the soap industry refers to biodiesel based on bovine tallow.

The entity claims that the use of bovine tallow as raw material for biodiesel in recent years has impacted the supply and price of tallow destined for soap. “While the soap sector expanded 8.9% from 2019 to 2020, the supply of its main raw material was redirected to the biofuel sector, a factor that generated distortion in the volume and prices of beef tallow on the market”, says Abisa .

A survey by the entity points out that, in recent years, with the increase in consumption by the biofuel sector, the price of beef tallow went from R$ 2.65 in 2019 to R$ 7.72 in 2022 in the annual average.

“Soybean oil is more effective as a raw material for the production of biodiesel. Thus, the use of bovine tallow for the production of biofuel must be reanalyzed by the sector and by the regulatory bodies”, says Abisa in the statement.

Joana Wedge with Fernanda Brigatti, Paulo Ricardo Martins It is Diego Felix

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