Brazil: The feed and protein powerhouse strengthens its competitive edge

Brazil is entering a new phase in which biofuel expansion, crop productivity gains, and greater agricultural processing are increasing both the volume and diversity of feed inputs. Already a leading producer and exporter of corn and soybeans, Brazil is expanding its base of feed ingredients and reinforcing one of its most important competitive advantages in animal protein production.

Growth in corn ethanol production is accelerating the availability of distillers dried grains, while higher soybean crushing, supported by biodiesel and renewable diesel demand, is expected to expand soybean meal supply. Sorghum production is also increasing, providing an additional alternative in regions or planting windows where second-crop corn is less viable. Together, these developments are gradually transforming a feed basket historically concentrated in corn and soybean meal into a more diversified system.

This transformation is particularly relevant because feed represents the largest operating cost in beef feedlots, hog production, and broiler production. Greater ingredient availability and formulation flexibility can therefore support margins, reduce exposure to individual commodity price movements, and strengthen the international competitiveness of Brazilian meat.

Combined with continued productivity gains and favorable domestic and export demand prospects, Brazil’s evolving feed sector provides a solid foundation for further growth and value creation across the agricultural supply chain. More importantly, the ongoing expansion of biofuels, grain processing capacity, and feed coproduct availability signals a broader transformation of Brazil’s agricultural sector. Rather than remaining primarily a commodity exporter, Brazil is increasingly positioning itself as an integrated feed and protein powerhouse, capturing more value across the supply chain through domestic processing and animal protein production.