Argentina sees EU soymeal opportunity as deforestation rules threaten Brazil trade

BUENOS AIRES/SAO PAULO: Brazil’s soybean industry fears the European Union’s new anti-deforestation regulations (EUDR) could curb soymeal exports to the bloc, creating an opening for rival supplier Argentina, which says it is better placed to comply with the incoming rules.

Brazil is the EU’s largest supplier of soybean meal for animal feed, accounting for about half of the bloc’s imports last year, according to data from the European Feed Manufacturers’ Federation (FEFAC). Brazil exported a record 23.3 million metric tons of soymeal in 2025. Starting December 30, the EUDR will require importers to prove their products are not linked to deforested land, with significant penalties for non-compliance.

In Brazil, extensive farmland across central and northeastern states has been developed in cleared ecosystems in recent decades, whereas Argentina’s most important farmlands are spread across the vast Pampas plains, where farmers have been producing for over a century.

The EUDR is raising alarm in Brazil’s agriculture sector, with FEFAC warning that traceability requirements under the rules could shut out up to 4 million tons of soymeal, roughly 17 percent of total exports. According to FEFAC’s latest report on how anti-deforestation rules may impact supply chains, Brazil was assigned a “medium” risk rating, with the west-central state of Mato Grosso and others facing “structural and logistical hurdles” that could restrict the expansion of fully EUDR-compliant supply chains.

Dante Romano, research manager at Rosario-based grains broker Max Agro, explained that farmers in central Brazil are more than 2,000 kilometres away from sea ports and often have to change between trucks, barges and trains to get their grains to export terminals, making supply chains difficult to trace. Argentina’s prime soy-producing lands are no more than 350 kilometres away from the Rosario port hub, making traceability considerably easier, and cheaper.