This study aims to develop low-cost, eco-friendly, and circular economy-compliant composite materials by creating three types of magnetorheological suspensions (MRSs) utilizing lard, carbonyl iron (CI) microparticles, and varying quantities of gelatin particles (GP). These MRSs serve as dielectric materials in cylindrical cells used to fabricate electric capacitors. The equivalent electrical capacitance (C) of these capacitors is measured under different magnetic flux densities (B≤160 mT) superimposed on a medium-frequency electric field (f = 1 kHz) over a period of 120 s. The results indicate that at high values of B, increasing the GP content to 20 vol.% decreases the capacitance C up to about one order of magnitude compared to MRS without GP. From the measured data, the average values of capacitance Cm are derived, enabling the calculation of relative dielectric permittivities (ϵr′) and the dynamic viscosities (η) of the MRSs. It is demonstrated that ϵr′ and η can be adjusted by modifying the MRS composition and fine-tuned through the magnetic flux density B. A theoretical model based on the theory of dipolar approximations is used to show that ϵr′, η, and the magnetodielectric effect can be coarsely adjusted through the composition of MRSs and finely adjusted through the values B of the magnetic flux density. The ability to fine-tune these properties highlights the versatility of these materials, making them suitable for applications in various industries, including electronics, automotive, and aerospace.