Rendering used to be a pretty good business. Independent renderers paid farmers for their dead stock, but made back their investment by selling the by-products. Farmers got rid of their dead animals at no cost and little effort. Times have changed. Competition for the rendered products is high.
Soybeans compete with both of the major rendered by-products, protein and grease.
In contrast, regulations are increasing. Compliance with water and air pollution standards is not cheap, especially for older factories. Increased fuel prices raised the costs of both rendering and carcass pick-up. As a result, the industry has been consolidating. There are seven plants licensed for rendering,'' in Iowa, said Machelle Shaffer, director of communications for the Iowa Department of Agriculture and Land Stewardship.