Abiove Sees Potential Growth in Biofuels Sector Amid Changes in Chinese Imports
The president of the Brazilian Association of Vegetable Oil Industries (Abiove), André Nassar, highlighted this Wednesday the growing importance of biofuels for the continued growth of soybean planting in Brazil. At a time when China, the largest global importer of the commodity, is adjusting its strategy to limit the increase in imports, Nassar emphasized that the demand for biofuels plays a crucial role in this scenario.
Nassar noted that China appears to be maintaining its total soybean imports at around 100 million tons from all origins, seeking to reduce its dependence on imports. He stated that, without the growing demand for biofuels, Brazil might not sustain the annual growth of 1 million hectares of soybeans as in recent years to meet Chinese demand.
After participating in an industry seminar hosted by Argus, Nassar stressed that, despite the current conditions of margins that are not so favorable for farmers, Brazil will likely see some growth in planted area in the next 2024/25 harvest, which begins in September. He expressed optimism about the recovery of productivity, especially after the challenges faced in 2023/24 due to droughts and floods in Mato Grosso and Rio Grande do Sul. Nassar predicted that, in a year with favorable weather, Brazil could reach a production of up to 170 million tons of soybeans, compared to the 152 million tons produced this year. Although the association does not yet have a definitive forecast, Nassar highlighted the significant potential for a robust harvest in the world’s largest producer and exporter of soybeans, warning of the impacts that a production of such magnitude could have on the international market.
Source: Portal do Agronegócio