Brazilian soybean crushers plan to invest more than $1.11 billion (5.9 billion reais) over the next year to expand crushing capacity in response to rising demand for biodiesel, Reuters reported, reported Reuters.
By 2025, the number of soybean crushing companies in the country is expected to increase from 67 to 75, while the number of plants will grow from 132 to 144. The sector currently has about 3.87 million tonnes of unused annual crushing capacity, down from 4.7 million tonnes in 2024.
Major global agribusiness firms including Bunge, ADM, and Cargill are moving to boost refining capacity in Brazil as the government pushes to raise the biodiesel blending mandate with diesel to 15%. That rate is projected to rise further in the coming years.
According to Brazil’s oil regulator ANP, around 75% of the country’s biodiesel comes from soybeans. Analysts estimate the planned investments will lift Brazil’s refining capacity by 8%, taking it to more than 80 million tonnes of fuel per year.
