Brazilian soybean exports face EU regulation

As European regulations against deforestation approach, the Brazilian soybean meal industry fears difficulties in accessing the EU market. Argentine exporters highlight their traceability, a direct issue. The competition between Brazil and Argentina to supply European livestock producers could change in character.

Industry representatives outline strategies

On October 28, 2026, representatives from both industries detailed to Reuters their strategies in response to the implementation of the European regulation on "zero deforestation" products. Brazil is concerned about traceability difficulties for certain soybean meal shipments; Argentina believes it has an organization better suited to the new requirements.

Soybean meal's role in French agriculture

The issue directly concerns French agriculture: soybean meal, obtained after extracting soy oil, is an important source of protein for poultry, pigs, and cattle feed. A reorganization of import flows could change the sourcing choices of animal feed manufacturers, although the effect on prices remains to be established.

Brazil's exposure to regulation

Up to four million tonnes of Brazilian products considered exposed. In 2025, Brazil was the leading supplier of soybean meal to the European Union, accounting for about half of the bloc's imports, according to data from the European Federation of Compound Feed Manufacturers (FEFAC) cited by Reuters. Its global soybean meal exports reached 23.3 million tonnes that year.

Logistical challenges in Brazil

According to an FEFAC assessment reported on October 28, compliance difficulties could affect up to four million tonnes of Brazilian soybean meal, or about 17% of the country's exports. This is an estimate of volumes exposed to commercial risk, and not of canceled orders or actually blocked goods. The obstacles are also logistical. In several production regions in central and northeastern Brazil, seeds travel long distances and use various modes of transport before reaching the ports. Precisely tracing the origin parcels of mixed lots requires procedures and information that not all circuits possess at the same level.

Argentina's advantage in traceability

Why Argentina believes it can gain market share. Argentine exporters highlight their VISEC system, designed to track agricultural production up to exportation. A large part of the country's soybean crops is located in the Pampa, relatively close to processing facilities and the Rosario port. This geographic concentration facilitates, according to professionals interviewed by Reuters, the documentation of supply chains.

Argentina's potential market share

The president of the Argentine chamber of exporters and crushers CIARA-CEC estimates that his country could replace part of the Brazilian shipments that encounter compliance difficulties. FEFAC classifies Argentina among the origins with a low risk of disruption related to the new rules. Paraguay is also considered relatively well positioned. These assessments concern the preparedness of the industries; they do not prejudge the contracts that will actually be concluded.

EU regulation's requirements

What the European regulation will require. The European Union Council specifies that the regulation will apply from December 30, 2026, to the concerned operators, with a deadline set for June 30, 2027, for micro and small operators. Soy and several of its derivatives are among the covered products. Companies will have to demonstrate, among other things, using the geographic coordinates of the fields, that the products marketed do not come from deforested land after the reference date set by the regulation. The due diligence requirement concerns the supply chain, and not only the country of origin listed on a commercial document.

France's reliance on soybean meal

In France, a question of supply for livestock. The link with France is structural. In its documentation on imported deforestation, the Ministry of Ecological Transition states that, during the period 2012-2021, France imported an average of 3.616 million tonnes of soy per year, 82% of which in the form of meal. Brazil accounted for 65% of these imports and Argentina 9%. These historical averages highlight the dependence of the French industry, without describing the exact commercial distribution in 2026.

Challenges for French industry

For animal feed manufacturers and livestock producers, the immediate challenge is to secure compliant volumes, with usable traceability documents and controlled logistics costs. Brazilian suppliers can adapt their chains, while Argentine competitors seek new markets. Price evolution will depend on the actually available quantities, contracts, and compliance costs: no specific increase for French consumers emerges from the October 28 announcements.