Argentina sees EU soymeal opportunity as deforestation rules threaten Brazil trade

Brazil's soybean industry is concerned that the European Union's new anti-deforestation regulations could limit its soymeal exports to the bloc, potentially opening up opportunities for Argentina. Brazil currently supplies about half of the EU's soybean meal imports, exporting a record 23.3 million metric tons of the product in 2025.

Starting December 30, the EU will require importers to demonstrate that their products were not linked to deforested land, with significant penalties for non-compliance. Brazil's extensive farmland has been developed in cleared ecosystems, while Argentina's most important farmlands are spread across the Pampas plains. The EU's soymeal regulations are raising alarm in Brazil, with the European Feed Manufacturers' Federation (FEFAC) warning that traceability requirements under the rules could cut up to 4 million tons of soymeal exports, roughly 17% of total exports.

Brazil was assigned a medium risk rating by FEFAC, due to logistical hurdles in expanding fully EU-compliant supply chains. Argentina's prime soy-producing lands are much closer to key export terminals, making traceability easier and cheaper. Argentina's president of the industry association Aprosoja, Mauricio Buffon, says the new legislation unfairly targets Brazil, arguing that environmental restoration efforts are underway in some regions while new cropland is being developed.

Argentina's powerful soybean crushing industry is ready to fill any potential export gaps left by Brazilian exporters, thanks to the country's VISEC traceability system. If Brazil is unable to meet EU requirements, Argentina could capture a larger share of the European market, which is already a significant part of Argentina's soymeal exports.