26 January 2011 16:13 [Source: ICIS news]
LONDON (ICIS)--Raw tallow prices in Germany have hit record highs amid concerns over contaminated meat which have led to reduced levels of slaughter and tight animal fat supplies, a tallow-based fatty acid producer said on Wednesday.
Tallow prices in Germany have reached €800-850/tonne ($1,096-1,164/tonne) FD (free delivered) NWE (northwest Europe), compared with €750-800/tonne in France and Italy.
“This is higher than the peak of 2008… these are record high prices,” said the producer.
The producer said that traces of dioxin, a group of potentially carcinogenic toxins, had reportedly been found in meat from numerous farms in Germany. This had caused both domestic and export demand to fall and had resulted in a reduction in the number of animals slaughtered.
In addition to the tightness in Germany, European tallow prices were being pushed up by the ever-increasing cost of vegetable oils, which often compete with tallow as a feedstock material.
“Biodiesel producers usually use rape [seed oil], but with rape prices so high they are using tallow instead. Rape is so expensive I don’t think you could even sell the biodiesel, it’s not economical,” said the producer.
This was confirmed by sources in the biodiesel market, who believed rapeseed methyl ester biodiesel producers were probably operating at a loss.
Tallow-based fatty acids prices for the first quarter of 2011 increased by 5-8%, which sources attributed to the rising cost of feedstock raw tallow.
($1 = €0.73)
To discuss issues facing the chemical industry go to ICIS connect
For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.
Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.
|ICIS news FREE TRIAL|
|Get access to breaking chemical news as it happens.|
|ICIS Global Petrochemical Index (IPEX)|
|ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index|