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Bovine Byproducts: Tallow, Gelatin, and Bone Meal — How Utilization Generates Extra Revenue

October 02, 20266 min read

The bovine by-products — tallow, gelatin, bone meal, meat meal, powdered blood, bile, and glands — represent 8 to 15% of the total value of the slaughtered bovine. The meatpack that processes and markets its by-products properly captures additional revenue that can represent R$ 50 to R$ 100 per slaughtered animal, in addition to reducing waste disposal costs.

The market for bovine gelatin, bone meal, and industrial tallow is growing with the increasing demand from cosmetics, pharmaceuticals, animal feed, and nutrition industries. Hydrolyzed bovine collagen — extracted from bones and skin — is one of the fastest-growing ingredients in Brazil and the world's supplement market.

When bovine by-products are processed with quality and marketed to the right industrial markets, this segment can contribute significantly to job and income generation in Brazil.

Join our strategic actions for the implementation of the best solutions in the Brazilian agricultural sector. Our activities, studies, and advanced research cover 20 chains and the 255 segments of the national agriculture — from the grains chain to sustainable extractivism, including horticulture, fruit growing, livestock, and much more.

The series Innovation for Brazil to Produce More was developed specifically to identify and implement the best available solutions in Brazil and around the world, across the 255 segments of the agricultural sector — with accessible technical language, updated data, and a focus on practical results for producers, suppliers, policymakers, and marketers.

1.  Opportunities for Small Rural Producers

How to structure the full utilization of bovine by-products in the meatpacking industry

The full utilization starts with the proper separation and disposal of each by-product right on the slaughter line — tallow for biodiesel and cosmetics; bones for meal and gelatin; blood for blood meal; skin for tanning; viscera for animal feed and pharmaceuticals.

✔    Bovine tallow: purification and disposal for biodiesel, cosmetics, and soaps

✔    Bovine bones: cooking for gelatin and collagen extraction

✔    Bone meal: high-demand fertilizing product for agriculture

✔    Bovine blood: blood meal for animal feed

✔    MAPA and ANVISA for by-products registration

The E-Book 01 — Strategic Manual for Small Rural Producers presents, in detail, the best solutions for this segment and 254 others in Brazilian agriculture — focusing on methodology, cost reduction, and progressive growth from Agro 1.0 to Agro 6.0.   Access now for BRL 99.00 →

2.  Opportunities for Micro and Small Local Suppliers

What equipment is required for processing bovine by-products

The processing of by-products requires tallow melters, bone cookers and specific dryers for each product.

Solutions by engineering field applied to the segment

Our activities, studies, and advanced research cover six major fields of engineering — and the chain demands solutions in all of them:

Electrical Engineering and Computing — automation of tallow melters; extraction temperature control;

Electronic Engineering and IoT — temperature sensors for gelatin extractors;

Control and Automation Engineering — bone cookers and meal dryers;

Mechatronics and Robotics Engineering — fat separators; tallow presses;

Renewable Energy Engineering — bioenergy from by-product waste;

Data Science and Artificial Intelligence — traceability of by-products; volume management.

✔    Tallow melters for purification and processing

✔    Gelatin and collagen extractors from bovine bones

✔    Bone and meat meal dryers

✔    Systems for managing bovine solid waste

✔    Consulting for utilizing bovine by-products

The E-Book 02 — Strategic Guide for Micro and Small Local Suppliers maps, segment by segment, the business opportunities — focusing on IoT, energy, automation, and specialized technical services.   Access now for BRL 99.00 →

3.  Opportunities for Municipal Governments

How municipalities can support the utilization of by-products and the bovine bioeconomy

The utilization of bovine by-products is a fundamental component of livestock bioeconomy — reducing waste, generating revenue, and creating additional income for the local meatpacking industry.

✔    Support for installing by-product utilization units in local meatpacking

✔    Bone meal program for fertilizing PNAE

✔    Municipal IDM: percentage of bovine by-products utilized locally

✔    Partnership with cosmetic industry for certified bovine tallow

✔    Biogas from bovine waste for meatpacking energy

The E-Book 03 — Reference Guide for Municipal Governments presents a step-by-step guide for municipal secretaries and managers to implement effective public policies for the 255 segments of agriculture.   Access now for BRL 99.00 →

4.  Opportunities for Small Agricultural Product Merchants

How bovine by-products generate business for the cosmetics, pharmaceutical, and agricultural industries

The hydrolyzed bovine collagen — extracted from the bones and skin of the bovine — is one of the fastest-growing supplements in Brazil and around the world. The global bovine collagen market is worth more than US$ 5 billion, and Brazil has high-quality, low-cost raw materials to compete in this market.

The bovine bone meal is a high-demand organic fertilizer for agriculture — especially for fruit growing and horticulture, where phosphorus from organic sources commands a premium over mineral sources. A meatpacking that processes bones into meal has a product with guaranteed market in the regional agriculture.

Products with high commercial potential

The main products derived from this segment for local retail and foodservice:

Hydrolyzed bovine collagen — premium supplement with high growth;

Industrial bovine gelatin — food and pharmaceuticals; stable market;

Bone meal for fertilizer — organic agriculture; high demand;

Bovine tallow for biodiesel — renewable energy from by-product;

Tallow for cosmetics — industrial soap and moisturizer;

Blood meal for feed — protein for aquaculture.

Merchant profiles and their specific opportunities

✔    Cosmetics industry: certified bovine tallow for soap and moisturizer

✔    Supplements industry: hydrolyzed bovine collagen

✔    Fertilizer distributors: bone meal for organic agriculture

✔    Feed industry: blood meal for aquaculture

✔    Biofuel: bovine tallow for biodiesel

✔    Pharmaceutical industry: bovine gelatin for capsules

Growth strategies for local merchants

The meatpacking that invests in a hydrolyzed collagen extraction unit transforms discarded bones into a product worth R$ 50 to R$ 150/kg in the supplement retail market. An investment of R$ 200,000 to R$ 500,000 in extractor pays back in 12 to 24 months with just one medium-sized meatpacking.

The BNDES and Finep finance innovation in by-products. The Pronampe covers by-product processing companies. The BNB/FNE provides support in the Northeast.

The E-Book 04 — Strategic Guide for the Small Merchant of Agricultural Products maps 30 merchant profiles and details growth opportunities in all 255 segments of agriculture.   Access now for BRL 99.00 →

Innovation and Technology Network

By purchasing any e-book from the series, you become a member of our Innovation and Technology Network. Groups with 30 members can organize and fund in-person strategic planning events to identify and implement the best available solutions in Brazil and around the world.

✔    Small Rural Producers

✔    Micro and Small Supplier Companies

✔    Municipal Governments

✔    Small Agricultural Product Merchants

⭐  Special offer: I will provide 100% discount on the value of my working hours for the 10 pioneer events organized by 11/30/26 and held in December 2026. Therefore, the 10 pioneer groups will only cover the general expenses.

Sincerely,

Ivo Alves

CEO · Master's in Electrical Engineering and Computing · Specialist in Innovation and Technology Project Management

Professor: IFPB and UFRN  ·  38 years of experience in Engineering

Equipe Editorial

Written by

Equipe Editorial

Content Team

Nossa equipe de especialistas compartilhando conhecimento.

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