Grain traders reorganize routes for EUDR soybean exports, Abiove says

Grain trading companies exporting soybeans, soy meal and soy oil from Brazil have reorganized logistics routes, silo flows and warehouse operations to comply with the European Union Deforestation Regulation (EUDR), according to André Nassar, president of Brazilian vegetable oil industry association Abiove.

The changes are directly affecting planning for EUDR soybean exports, as traders prepare for the EU rules expected to enter into force in January 2027. Abiove’s members include some of the world’s largest agricultural commodity traders, such as ADM, Cargill, Bunge and Amaggi.

The EUDR restricts EU imports of products linked to deforestation, even when vegetation clearing was considered legal in the agricultural product’s country of origin. Under the rules, the bloc will not accept products from areas deforested after December 31, 2020.

European importers will also have to prove that production complies with the laws of the country of origin, including environmental and labor rules, and demonstrate the origin and traceability of the commodities. The products covered by the regulation include coffee, cocoa, soybeans, wood, rubber, beef and palm oil, as well as their derivatives.

The EUDR was originally set to take effect in 2026, but in December 2025 the European Parliament approved a one-year delay to give governments and companies more time to adapt their processes. The rules are now expected to apply to large and medium-sized companies at the end of December this year.

Segregated cargoes will change logistics flows

One of the main concerns for grain exporters is that the EU will require products shipped to the European market to be segregated. That means traders will have to change how they use logistics routes and storage facilities.

Because EU rules differ from Brazil’s Forest Code and from the requirements of other importing countries, cargoes destined for the bloc will need to be kept separate from other shipments.

Until now, traders transported much of their volumes by rail, with cargo later shipped to different buyer countries. In silos, warehouses and bulk carriers, cargo purchased by different importing countries was also mixed.

Under the EUDR, volumes sold to EU countries will have to be allocated to separate transport systems and storage structures, a change that is expected to raise costs for European buyers.

“Some companies chose a single route [to move commodities destined for the European Union], while others decided to use two or three corridors,” Nassar said on the sidelines of an event in São Paulo, without detailing the routes.

Companies fear legal uncertainty

Even as they work to meet EUDR requirements on several fronts, grain and oilseed product traders have expressed concern about how European authorities will enforce the anti-deforestation law once implementation begins.

In May, three European associations representing the grain trade, vegetable oil industry and compound feed industry — Coceral, Fediol and Fefac — issued a joint statement saying recent simplifications to the EUDR had not improved legal certainty for companies. They also reiterated concerns over the risk of supply disruptions in the European market.

The European Union is the second-largest buyer of Brazil’s soy complex products, accounting for 13% of export revenue in the first seven months of 2026.

For soybean meal, the bloc is far more important. From January to July, 42% of Brazil’s soybean meal export volume went to the EU, while China accounted for 45%. The European market was also the main destination for Brazilian soybean meal in 2025, absorbing more than half of the volume, or 11.8 million metric tons.

Brazil has become the world’s biggest soybean supplier with exports ​climbing more than 13-fold since 1997/98. The chart below provides an overview of soybean export volumes shipped from Brazil in recent years:

Soybean Exports | Jan 2023 – Jun 2026 | WTMT

Source: DataLiner (click here to request a demo)

Brazil also exports soybeans to the European Union, although the bloc has a smaller weight in that market. Last year, the EU bought just over 7% of Brazil’s soybean export volume.

For traders, the challenge now is to turn EUDR compliance into a workable logistics model. That means ensuring traceability and segregation without disrupting export flows or eroding the competitiveness of EUDR soybean exports from Brazil.

Source: Globo Rural

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