“When looking to the future, the appeal increases even more with the prospect of a gradual increase in the blend to B25…”
Daniel Furlan Amaral, director of economics and regulatory affairs at the Brazilian Association of Vegetable Oil Industries (Abiove) and president of the Oilseeds and Biodiesel Sector Chamber at MAPA.
Furlan Amaral holds a degree in economics from USP, a M.Sc. and doctorate from Esalq, and an MBA from XP Educação.
AgriBrasilis – How is biodiesel changing the soybean processing industry?
Daniel Furlan – Biodiesel is structurally changing the dynamics of the soybean processing industry. Increased demand for vegetable oil in the domestic market has made the biofuel industry, led by biodiesel, the main destination for this input today. In practice, a product that represents about 20% of the soybean mass already accounts for almost half of the industry’s revenue. This shift strengthens the entire chain: biodiesel creates value for oil, increases the competitiveness of soybean meal, and helps reduce food costs. It is a movement that transforms the economic balance of the sector and shows how the energy transition can also boost food security.
AgriBrasilis – Why is biodiesel production becoming more attractive?
Daniel Furlan – The biodiesel business environment in Brazil has matured. Today, the sector has a solid regulatory framework, well-established technical and socio-environmental parameters, and a relatively predictable tax system, all of which provide security for investment. In addition, there is a mandatory blending policy that guarantees continuous and predictable demand. Looking ahead, the attractiveness increases even more with the prospect of a gradual increase in blending to B25, as provided for in the Fuel of the Future Law. It is a path that gives the sector a horizon and reinforces the role of biodiesel in Brazil’s energy transition.
AgriBrasilis – Is the current capacity of the processing industry sufficient to keep pace with record soybean production?
Daniel Furlan – Yes, and with room to spare. Brazil’s industrial park was structured to serve both the foreign grain market and domestic consumption of meal and oil. Today, Brazil exports all three products—soybeans, meal, and oil—and has the installed capacity to sustain production growth and keep pace with the increase in biodiesel blending. In other words, the industry is prepared to grow alongside the field.
“…tariff and technical barriers imposed by some markets hinder the entry of Brazilian bran and reduce demand for this product.”
AgriBrasilis – How can processing efficiency be increased and crushing margins improved?
Daniel Furlan – Brazil is already among the global leaders in industrial efficiency in soybean processing. Brazilian meal and oil are recognized for their quality, the result of a modern technological park and excellent production practices. Margins, however, vary according to the market scenario and depend on global demand, prices, and competitiveness. What the country has been doing is seeking predictability through policies that sustain demand, such as the mandatory blending of biodiesel, which helps to better balance these margins over time.
AgriBrasilis – What bottlenecks limit the advancement of processing in Brazil?
Daniel Furlan – The biggest obstacle is still outside our borders: tariff and technical barriers imposed by some markets hinder the entry of Brazilian bran and reduce demand for this product. It is a matter of protectionism, not quality, as Brazil produces with recognized excellence. Even so, the country has been acting diplomatically and commercially to open new destinations and diversify exports, expanding the space for Brazilian products in the world.
AgriBrasilis – Is there room to add more value and diversify soybean processing derivatives?
Daniel Furlan – Without a doubt. Brazil can go far beyond exporting grains, meal, and oil. There are concrete opportunities to expand the production and export of concentrated soybean protein, biodiesel, and other refined products. There is also room to further integrate the chains: processing meal in the country, using it for meat production, and exporting value-added animal protein. This means more jobs, income, and innovation. But for this to happen, it is essential to align economic, tax, trade, and diplomatic policies. Added value does not happen by chance; it is built with a long-term vision.
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