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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Declinazione di responsabilità
Le informazioni ed i contenuti pubblicati non costituiscono in alcun modo una sollecitazione ad investire o ad operare nei mercati finanziari. Non sono inoltre fornite o supportate da TradingView. Maggiori dettagli nelle Condizioni d'uso.