Biodiesel: Ubrabio defends that a strategy of adding value to the national industry


The need for Brazil to implement a strategy that results in greater added value to the national industry, in addition to ensuring a scenario of greater predictability for biodiesel producers. These were some of the issues highlighted by the president of the Brazilian Union of Biodiesel and Biokerosene (Ubrabio), Juan Diego Ferrés, when participating in the opening of the first edition of Biodiesel Week. Promoted by Ubrabio and Embrapa Agroenergia, the webinar cycle began last Monday (10), International Biodiesel Day.

Mediated by the superintendent director of Ubrabio, Donizete Tokarski, the opening session also included the participation of the president of the Chamber of Deputies, Rodrigo Maia; the director of the National Petroleum, Natural Gas and Biofuels Agency (ANP), Dirceu Amorelli; federal deputies Jerônimo Goergen (PP/RS), Arnaldo Jardim (Cidadania/SP) and Enrico Misasi (PV/SP); and the general head of Embrapa Agroenergia, Alexandre Alonso.

In his participation, the president of Ubrabio defended the implementation of a strategy to add value to the national industry. Juan Diego Ferrés appealed to the President of the Chamber of Deputies to take advantage of the Tax Reform to correct distortions in taxation on Brazilian exports.

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In the specific case of the biodiesel industry, this scenario ends up stimulating the export of soybeans, the main raw material for biofuel, reducing the volume that remains in Brazil to be used in biodiesel processing.

“We do not have, in the Brazilian tax structure, with its tangle of disordered taxes, an adequate policy for adding value. This tax structure contaminates value chains by benefiting national raw materials at the time of their export. Therefore, it is not competitive with added value. This means that raw materials are exported every day in a less industrialized way”, highlighted Juan Diego Ferrés, who participated in the formulation of the program for the use of biodiesel in Brazil.

When speaking to the participants, the president of the Chamber of Deputies highlighted the importance of biodiesel for the sustainable development of Brazil. Rodrigo Maia stated that the tax system has a cumulative effect and said that the Chamber is committed to discussing the issue.

“Tax Reform aims to better organize the tax system and productivity chains in Brazil”, explained Rodrigo Maia, who proposed holding a working meeting to further discuss the issue.

The president of Ubrabio also highlighted the importance of the government working to create a more predictable scenario for biodiesel producers. Juan Diego Ferrés said this when referring to the large volume of soy destined for export (around 80% of production), to the detriment of the grains remaining in Brazil to be used as inputs for the biodiesel industry.

In his initial participation in the event, the president of Ubrabio made a point of highlighting the importance of the Brazilian biodiesel industry, which currently produces around 650 thousand m3 of biodiesel per month, which is equivalent to 7.8 million m3 per year. According to Juan Diego Ferrés, the segment takes investments to all regions of the country, generates approximately 500 thousand direct and indirect jobs, and involves around 100 thousand family farmers, who receive technical and credit support.

Source: DATA

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