Argentina regains leadership in soy meal exports

Brazil’s reign as the world leader in soy meal exports was brief, lasting just one year before Argentina regained the top spot as its soybean production rebounded.

Following a sharp drop in the 2022/23 harvest to around 22 million tonnes, Argentina’s soybean meal production and exports have returned to normal. This year, Argentina has already shipped 19.9 million tonnes of soybean meal to international markets, surpassing the 2023 total of 16.2 million tonnes. Argentina’s soybean production has reached 50 million tonnes, with a soybean meal export capacity of 25 million tonnes, similar to 2022 levels.

While Brazil has lost the lead, its export volumes are rising. In the first nine months of this year alone, Brazil shipped 17.2 million tonnes of soybean meal—the highest ever for this period. According to estimates from Abiove (the Brazilian Association of Vegetable Oil Industries), Brazil’s soybean meal exports could hit 21.5 million tonnes this year, close to the 2023 total.

The following two charts show the export volume of Brazilian soy residues between January 2021 and August 2024.

Exports of Soybean Residues from Brazil | Jan 2021 – Aug 2024 | WTMT

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Although the U.S. ranks as the world’s second-largest soybean producer, its soybean meal exports trail behind those of Brazil and Argentina. Data from the USDA shows that the U.S. exported 9.4 million tonnes of soybean meal from January to August, totaling 14 million tonnes for last year.

Brazil’s increased soybean meal availability stems from its growing processing capacity, which has expanded from 50.9 million tonnes two harvests ago to 54.5 million tonnes. This growth is driven by rising demand for both soybean oil and meal. Higher biodiesel blending mandates have boosted soybean oil requirements, while increased domestic protein production and robust foreign demand have opened up new opportunities for soybean meal.

According to Abiove, Brazil’s volume of soybean product exports is growing, yet lower prices affect revenues. Soybean meal earnings, which reached $11.6 billion in 2023, are projected to drop to $9 billion this year. Similarly, soybean oil revenues, totaling $2.5 billion last year, are expected to decline to $1.1 billion.

Source: Folha de S. Paulo

Original reporting: https://www1.folha.uol.com.br/colunas/vaivem/2024/10/argentina-retoma-lideranca-na-exportacao-de-farelo-de-soja.shtml

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