The current Brazilian production of vegetable oils is enough to meet the demand for B20 (20% biodiesel added to commercial diesel). Increasing domestic soybean and cottonseed crushing would expand the potential for production growth. Palm, canola, sunflower, and peanut are also promising production chains, according to Daniel Furlan Amaral, the head economist of the Brazilian Association of Vegetable Oil Industries (Abiove). Soybean crop is expected to reach 125.4 million tons this year, with grain crushing reaching around 48 million tons. Soybean meal output is forecast at 36.7 million, whereas soybean oil is expected to reach 9.7 million tons. The volume of soybean oil added to the volume of other vegetable oils, such as cottonseed and palm oils, amount to 11 million tons. However, there is potential to reach 27 million tons, an increase of 145.4%, which would give a boost to the supply of raw material to produce biodiesel and food.
Source: Canal Rural (*Translated by Ia Niani)