The Brazilian government has decided to maintain the current 14% biodiesel blend instead of increasing it to 15% in March as initially planned, Energy Minister Alexandre Silveira told Reuters, reports Oils & Fats International.
Biodiesel production in Brazil primarily comes from processing soybeans into soybean oil. The decision to keep the blend at 14% has led agribusiness consultancy StoneX to revise its forecast for biodiesel sales growth in the country.
Had the blend increased to 15%, biodiesel sales would have risen by 1.2 million cubic meters (m³), pushing total demand to 10.2 million m³ in 2025, according to Reuters. However, with the blend staying at 14%, the expected annual sales increase is now projected at 600,000 m³, bringing the total demand to 9.6 million m³.
Silveira stated that the blend would remain at 14% “until further deliberation, which can be taken at any time.” He explained that the decision was necessary due to concerns over food inflation.
The Brazilian Association of Vegetable Oil Industries (Abiove) noted that the government’s choice was based on the price of soybean oil. However, Abiove pointed out that prices for both packaged soybean oil and biodiesel were already falling due to a record soybean harvest in Brazil.
The association urged the government to reconsider its decision as soon as possible.
