Research

A deep dive into Brazil´s biodiesel sector

RaboResearch

Brazil's biodiesel blend rose from 2% to 14% since 2008, driven by soybean supply and crush capacity. New laws target 20% by 2030, needing more soy oil and capacity.

Intro

Since 2008, Brazil has increased its biodiesel blend from 2% to 14% by 2024, driven by a surge in soybean supply and investments in crush capacity. This has led to a 10% annual growth in biodiesel production. New legislation aims to increase the blend to 20% by 2030, requiring more soy oil and crush capacity. While soy oil will boost crush margins, soymeal prices may drop due to oversupply. By 2030, Brazil's soybean production is projected to reach 185m metric tons. Consistent government policies and private sector demand are crucial for success.

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