Darling Ingredients Inc (DAR)

The landscape for our agribusiness coverage has been in near constant flux. Encouragingly, clarity in the most impactful area – biofuel policy – seems imminent and directionally bullish. Trade dynamics, however, have remained volatile and…

Darling’s Q3 results reflected fairly solid execution across its core Feed and Food businesses, with offsets from weaker-than-expected performance at DGD due to a sizable LCM ($38M) and LIFO (not disclosed) impact. As we expected,…

The global grains/oilseed complex is currently characterized by excess production and processing capacity. Trade tensions has exacerbated the imbalance for U.S. producers. A massive, sustained new demand driver is required – genetics and improved agronomic…

As noted in our companion industry piece published today, while the outlook for biofuel policy has, if anything, become more constructive, definitive clarity has been pushed out further. We expect finalized rules in early Q1…

Total domestic meat supply conditions have begun to ease in recent weeks despite tighter beef conditions. That largely reflects expanded chicken production, but is compounded by continued yr/yr deterioration in total net exports (exports less…

New World Screwworm (NWS) has garnered significant media attention over the past weeks, particularly following the second closure of US-Mexico livestock crossings in early July. The lack of live cattle entering the US has exacerbated…

DAR’s Q2 results were modestly shy of our/consensus projections; it reduced full-year guidance ($1.05B-$1.1B from $1.25-$1.3B) to a level largely in line with expectations. However, the shares have since traded off nearly 15%. There have…

We are reducing our Q2, 2025 and 2026 estimates for DAR driven by weaker-than-expected DGD margins, as well as less robust assumptions for the Food business. Core Feed should show nice improvement from Q1 given…

The recent RVO proposal laid out far more bullish targets than we had anticipated, and also put forward potential modifications to RIN values for imported fuels/feedstocks. That, combined with potential changes to 45Z rules, results…

Brazil’s farmers have long benefited from both the ability to produce 2-3 crops per year and relatively low land conversion costs. Technological improvements have fostered higher yields that have improved its cost profile further (BZ…