For Abiove’s chief economist, Daniel Amaral, Brazil can take advantage of the high global demand for soybean and could adjust logistical and tax issues. Brazil soybean processing reached 13 million tons in the first quarter of 2022, an increase of 8% when compared to the same period last year, according to the Brazilian Association of Vegetable Oil Industries (Abiove). Likewise, the positive result for soybean oil is due to exports since the international market is dependent on the Brazilian by-product. As for soybean meal, Brazil’s main competitors have recently reduced supply, while demand continues to grow. “Brazil is in a privileged position to increase production to meet this growing demand for food around the world”, said Amaral. For the next season, Amaral believes that global demand will continue to soar upwards and that farmers will have incentives to increase production. According to the economist, there is a market for both by-products and soybeans. Amaral also said that Brazil needs to seize the opportunity to improve its logistical and tax issues. In addition, further international agreements should be negotiated.
Source: Rural Channel (*Translated by Ia Niani)