Darling Ingredients (DAR) 21st Annual Global Farm to Market Conference summary

Strategic positioning and operational momentum

• Leadership has executed a decade-long strategy of acquisitions, capacity expansions, and joint ventures, positioning the business as a global leader in rendering, biofuels, and food ingredients.

• Recent clarity on the Renewable Fuel Standard (RVO) has accelerated demand, leading to the restart of biofuel plants and improved fat prices, boosting earnings.

• Export resurgence in poultry meal and strong protein and fat markets are driving robust performance in the rendering business.

• Diamond Green Diesel has shifted from reinvestment to dividend generation, marking a significant inflection point for cash flow.

Segment performance and growth drivers

• Collagen and gelatin, representing 85% of food segment EBITDA, are experiencing strong global demand, tightening gelatin supply and increasing margins.

• The protein and fat segments are benefiting from favorable market dynamics, with the food segment expected to accelerate further in coming months.

• Internal improvement opportunities in the feed segment are estimated at $150–$300 million over the next 2–3 years, driven by contract resets, operational alignment, and asset optimization.

• Plans include building 20–30 new plants globally over the next 3–5 years, focusing on high-growth regions such as Brazil and Eastern Europe.

Market dynamics and policy impacts

• RVO policy and geopolitical events, such as the Middle East conflict, have supported early production and strong margins in renewable diesel and sustainable aviation fuel (SAF).

• U.S. feedstocks benefit from policy incentives and freight advantages, while international feedstocks discount to compete.

• Margins are expected to rise to incentivize imports and reduce exports, balancing the RIN deficit projected for 2027.

• Industry utilization rates are high, with little new capacity expected beyond potential de-bottlenecking.