Darling Ingredients Inc. (NYSE: DAR)
Why It Could Benefit Most From the Ban/Restrictions of the use of Seed Oils in the food supply:
Core Competency in Animal Fats: Darling specializes in rendering animal by-products, including beef tallow, which would see a direct surge in demand as a seed oil substitute in foods and sauces. Their existing infrastructure is already optimized for producing and distributing tallow at scale.
Market Positioning:
Darling is a leader in the animal fat market, with a global network of rendering facilities. A ban on seed oils would align perfectly with their strengths, as they don’t rely heavily on seed oil production compared to ADM or Bunge.
Diversified Applications:
Beyond food, Darling supplies tallow for biofuels and industrial uses, but they could easily pivot more capacity to food-grade tallow if demand spikes. Their recent focus on sustainability (e.g., through Diamond Green Diesel, a renewable diesel joint venture) shows adaptability to regulatory shifts.
Revenue Impact:
In 2023, Darling’s Feed Ingredients segment (which includes tallow) accounted for a significant portion of its $6.8 billion revenue. A seed oil ban could disproportionately boost this segment, potentially increasing margins as tallow prices rise.
Why It Could Benefit Most From the Ban/Restrictions of the use of Seed Oils in the food supply:
Core Competency in Animal Fats: Darling specializes in rendering animal by-products, including beef tallow, which would see a direct surge in demand as a seed oil substitute in foods and sauces. Their existing infrastructure is already optimized for producing and distributing tallow at scale.
Market Positioning:
Darling is a leader in the animal fat market, with a global network of rendering facilities. A ban on seed oils would align perfectly with their strengths, as they don’t rely heavily on seed oil production compared to ADM or Bunge.
Diversified Applications:
Beyond food, Darling supplies tallow for biofuels and industrial uses, but they could easily pivot more capacity to food-grade tallow if demand spikes. Their recent focus on sustainability (e.g., through Diamond Green Diesel, a renewable diesel joint venture) shows adaptability to regulatory shifts.
Revenue Impact:
In 2023, Darling’s Feed Ingredients segment (which includes tallow) accounted for a significant portion of its $6.8 billion revenue. A seed oil ban could disproportionately boost this segment, potentially increasing margins as tallow prices rise.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.