Brazil's soybean industry fears the European Union's new anti-deforestation regulation (EUDR) could curb its soymeal exports to the bloc, creating an opening for rival supplier Argentina, which says it is better placed to comply with the incoming rules, Reuters reported on Wednesday.

Source: Reuters

Brazil is the EU's largest supplier of soybean meal for animal feed, accounting for about half of the bloc's imports last year, according to data from the European Feed Manufacturers' Federation (FEFAC). Brazil exported a record 23.3 million metric tons of soymeal in 2025 — yaani 2.33 crore metric tons.

23.3 million tonsBrazil's record soymeal exports in 2025, according to FEFAC data cited by Reuters
4 million tonssoymeal FEFAC warns traceability rules could shut out — about 17% of Brazil's exports; yaani 40 lakh tons
Dec 30date the EUDR requirement takes effect for importers

Why Brazil faces the harder traceability test

Starting December 30, the EUDR will require importers to prove their products are not linked to deforested land, with significant penalties for non-compliance, Reuters said. FEFAC's latest report assigned Brazil a "medium" risk rating, with the west-central state of Mato Grosso and others facing "structural and logistical hurdles" that could restrict fully compliant supply chains.

Dante Romano, research manager at Rosario-based grains broker Max Agro, told Reuters that farmers in central Brazil are more than 2,000 kilometres from sea ports and often switch between trucks, barges and trains to reach export terminals, making supply chains difficult to trace.

Argentina's Pampas argument

In Brazil, extensive farmland across central and northeastern states has been developed in cleared ecosystems in recent decades, whereas Argentina's most important farmlands are spread across the vast Pampas plains, where farmers have been producing for over a century, Reuters reported — the history Argentina's industry points to when it says it can document deforestation-free supply more easily.

The warning does not mean Brazilian soymeal disappears from Europe on December 30. It means, on FEFAC's assessment reported by Reuters, up to about one-sixth of Brazil's trade could struggle to prove compliance unless traceability improves — volume Argentine exporters are positioning to capture.