Brazil’s soybean industry is set for a major expansion as processors plan to invest 5.9 billion reais ($1.11 billion) over the next year to meet soaring biodiesel demand, oilseed association Abiove announced Monday.
The planned investments would lift processing capacity by 8%—about 6 million metric tons annually—in a sector dominated by global players such as Bunge, ADM, and Cargill. If fully implemented, Brazil’s total crushing capacity could exceed 80 million tons per year, reinforcing the country’s role as the world’s top soybean exporter and the third-largest processor after China and the U.S.
Daniel Amaral, Abiove’s economic affairs director, said the expansion highlights the sector’s “dynamism and strategic importance to the Brazilian economy.” The push comes as Brazil’s biodiesel mandate, currently requiring a 15% blend into diesel, is expected to increase.
Soybeans already account for roughly 75% of the country’s biodiesel production, according to regulator ANP. Abiove also reported industry growth, with the number of processing companies rising from 67 in 2024 to 75 this year, and total plants expanding from 132 to 144.
Idle capacity fell from 4.7 million tons in 2024 to 3.87 million tons this year, signaling stronger utilization rates across the sector.
