BRAZIL’S SOYBEAN AND BIODIESEL GDP SET FOR 11% GROWTH THIS YEAR

Industry projections from Abiove and Cepea indicate that Brazil’s soybean and biodiesel supply chain could grow by nearly 11% in 2025, fueled by a record soybean harvest of around 170 million tons and a 3.6% rise in oilseed crushing. After three consecutive years of decline, the sector’s GDP-Income is forecast to surge by 18.2%, reaching BRL 820.9 billion. A key driver of demand will be the increase in Brazil’s biodiesel mandate, which rises from 14% to 15% starting in August, boosting processing activity. While edible oil consumption remains sluggish, biodiesel production continues to sustain demand for processed soybeans. The forecast also anticipates a 24.1% increase in soybean GDP and a 7.4% increase in employment in the sector, with 2.44 million workers in the first quarter. Exports to China increased by 6.7%, and the sector continues to monitor oil price fluctuations and the impact of international trade disputes on the chain’s performance.
Source: Globo Rural / Udop (*Translated by Ia Niani)