Brazilian biodiesel production is expected to fall more than 7 percent this year, with biodiesel consumption down nearly 9 percent, according to a report filed with the USDA Foreign Agricultural Service’s Global Agricultural Information Network. Biodiesel production capacity, however, is expected to increase.

Biodiesel production in Brazil is expected to reach 6.37 billion liters (1.68 billion gallons) this year, down from 6.87 billion liters in 2021 and 6.5 billion liters in 2020.

Biodiesel consumption is expected to fall to 6.335 billion liters in 2022, down from 6.928 billion liters in 2021 and 6.496 billion liters in 2020. The biodiesel blend rate is forecast at 10 percent this year, down from 11.15 percent last year and 11.3 percent in 2020.

Brazil trades very little biodiesel. Imports are expected to be at 20 million liters this year, compared to 2 million liters in 2021 and 1 million liters in 2020. Biodiesel exports are expected to reach 30 million liters this year, up from 8 million liters in 2021 and 4 million liters in 2022.  

The country currently has an estimated 57 biodiesel refineries with a combined capacity of 13.259 billion liters, compared to 50 facilities with a combined 11.19 billion liters of capacity in 2021 and 51 facilities with a combined 9.792 billion liters of capacity in 2020. Capacity use is expected to reach 48 percent in 2022, down from 61.4 percent in 2021 and 66.4 percent in 2020.

Soybean oil is the primary biodiesel feedstock in Brazil, with 3.892 million metric tons expected to be consumed this year, followed by animal fat at 733,000 metric tons, palm oil at 147 million metric tons and used cooking oil at 104 million metric tons.

A full copy of the report can be downloaded from the USDA FAS GAIN website.