EU Rules May Redirect Brazil Soymeal Trade

Argentina could capture more of the European Union’s soybean-meal market if Brazil struggles to meet the bloc’s anti-deforestation rules, which require importers to show products are not linked to deforested land. Brazil supplies about half of the EU’s soybean meal and could see up to 4 million tons of exports affected by traceability requirements; Argentina’s grain exporters say the country could replace 5 million to 6 million tons. Argentina may have an easier time documenting supply chains because its main growing areas are close to the Rosario port hub, while Brazilian soybeans often travel long distances through multiple transport modes. The rules could therefore reshape competition between the two major suppliers, though the scale of any shift will depend on Brazil’s ability to establish compliant traceability systems.