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Boosted by bio-fuels Brazil increases soy bean and oil processing-refining capacity

Friday, May 6th 2011 - 01:42 UTC
Full article 5 comments

Brazil’s soy bean processing volume increased 7% in 2010 over 2009 while at the same time reducing idle capacity given the larger crop and a jump in the production of bio fuels, according to a release from Abiove, (Brazilian association of vegetable oil industries).

Last year daily processing capacity increased from 165.299 tons per day to 176.834 tpd while the industry’s idle capacity was down to 26% from 30% in 2009.

“Between 2009 and 2010 there was a larger crop, improved technology and record processing. Industry overall made better use of its capacity”, said Fabio Trigueirihno, Abiave president.

Brazil’s soy bean crop, world’s second producer, increased over 10 million tons from 2009 to 2010, reaching 68.7 million tons. Processing soy-oil for bio-diesel in 2010 also helped the industry. In 2010 it was mandatory for the bio-fuel component of diesel to increase from 3% in 2009 to 5%.

For 2011 Abiove anticipates supply to processing plants will increase by 300.000 tons in spite the fact the crop is estimated to jump a further 2 million tons.

“For 2011 we’re estimating a slight increase in processing while the idle level should remain almost the same” said Trigueirinho.

Abiave estimates that as the use of bio-fuels in Brazil expands the capacity of soy bean processing plants can be expected to grow. Multinationals Cargill and Bunge have announced they will also be involved in the bio-fuels business.

In 2010, the state of Matto Grosso had the largest oil seeds processing capacity with 36.600 tons per day, followed by Paraná, 35.645 tons pd and Rio Grande do Sul, 30.400 tons pd. According to an Abiave census, oil refining capacity in 2010 was 22.900 tons pd compared to 22.860 tons in 2009.

The soy bean processing industry in Brazil is made up of 59 companies with 115 processing plants (89 active and 29 non active). Vegetable oil refining industry includes 35 companies with 63 processing plants (46 active and 17 non active).

Top Comments

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  • GeoffWard

    Keeping soy->biofuel production volumes in phase with mineral oil production for 5% diesel will be progressively more difficult as mineral oil volumes increase, and soy/soy product tonnages become increasingly tied to export contracts.
    There will be a need for new flexibilities, otherwise Brasil may have to increase soy oil imports (!) to meet the 5%.

    May 06th, 2011 - 11:55 am 0
  • Pheel

    I feel that the pressure will be on China, not in SAmerica.

    The chinese need a lot of beans for being processed there, but biodiesel is a substitute which will take all the ground asian buyers leave.
    That will put chinese oil industry in problems.
    Hope that they will arrive to the conclusion that they have to buy more oil and less beans, keeping SA oil industry profitable.
    As a pattern, they will have to buy processed food, instead of raw materials.

    May 06th, 2011 - 12:18 pm 0
  • GeoffWard

    A hope, but not a strong one.
    China has processing capacity that exceeds its throughput. Hence it tries to negotiate for beans rather than soy oil.
    The key factor is the control that government exerts on the soy companies to supply the home biofuels market, when higher profits can be made from export sales to China.
    Then again, Argentina might re-start supplying China when its need for foreign money becomes critical. This would alter the picture radically.

    May 06th, 2011 - 07:00 pm 0
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