Brazil soybean crushing capacity expanding on strong biofuel demand

By Roberto Samora

SAO PAULO, Sept 22 (Reuters) - Brazil's soybean processors are expected to invest 5.9 billion reais ($1.11 billion) over the next 12 months as companies respond to growing demand for biodiesel, oilseed lobby Abiove said on Monday.

The investments would boost the country's processing capacity by 8%, or roughly 6 million metric tons per year in a sector dominated by companies such as Bunge BG.N, ADM ADM.N, and Cargill.

Brazil, the world's largest soybean producer and exporter, is the third-largest processor of the oilseed, behind China and the United States, according to data from the U.S. Department of Agriculture (USDA).

According to Abiove, companies are committed to increasing processing capacity to produce more biodiesel. Brazil mandates blending of 15% of biodiesel into diesel and that is expected to rise.

If all planned investments are confirmed, Brazil's crushing capacity could rise to above 80 million tons per year, Abiove said.

"The increase in installed capacity demonstrates the industry's dynamism and the sector's strategic importance to the Brazilian economy," said Daniel Amaral, Abiove's economic affairs director.

About 75% of the country's biodiesel is produced from soy, oil regulator ANP says.

Compared to 2024, the number of soy processing firms in Brazil rose to 75 from 67, and the number of plants grew to 144 from 132, Abiove said.

In 2025, the industry's idle capacity is equivalent to 3.87 million tons of processing per year, while in 2024 it was around 4.7 million tons.

($1 = 5.3174 reais)