We participated in the July edition of the magazine Química e Derivados. Our experts Leandro Leo, Heitor Pereira, Tiago Vicente, Muriel Aboissa and Felipe Camargo, discussed the competition in supply and prices of vegetable oils in an article on how the advance of biofuels threatens food industry supplies.
The article addresses the growing competition between the food and renewable fuel markets for the supply of vegetable oils, particularly soybean and palm. Currently, the demand for vegetable oils for biodiesel production is increasing. This trend changes the supply and demand dynamics of these products and impacts prices, thus creating significant challenges for the food industry.
Furthermore, the article also highlights the importance of diversifying the production of vegetable oils in order to avoid relying exclusively on a single raw material. This is essential to meet the growing demand from both the food and biofuel sectors. In addition, our experts discussed the difficulties that the Brazilian market faces in expanding the production of palm and palm kernel oil, due to low local production and high freight and labor costs.
Biodiesel production is expected to grow significantly, with the increase in mandatory blending of biodiesel into diesel, which will require substantial investment in new plants and crushers. soy. The competitiveness of the soybean oil market is also affected by external factors, such as international demand and dollar volatility.
Check out our article in issue 658, page 66.
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