Brazil is significantly expanding its soybean processing capacity to meet rising demand for biodiesel. This rapid growth, nearly double the rate of the previous three years, is driven by Brazil’s ‘Fuel of the Future’ law, which mandates increasing the vegetable oil content in biodiesel from 14 percent to 17 percent by 2027. This policy shift will fuel a 34 percent surge in soybean oil demand, with biodiesel consumption projected to rise from 9.3 billion liters in 2024 to 12.3 billion liters in 2027. Despite the substantial increase in domestic demand, Brazil’s soybean oil exports are expected to remain stable at around 1 million metric tons annually, lower than the five-year average of 1.8 million metric tons.
