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

Friday, May 6th 2011 - 01:42 UTC

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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). Read full article

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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 - Link - Report abuse 0
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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 - Link - Report abuse 0
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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 - Link - Report abuse 0
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vnancy2011
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May 10th, 2011 - 06:50 am - Link - Report abuse 0
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GeoffWard
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May 10th, 2011 - 10:26 am - Link - Report abuse 0
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