Corn oil and fractions market in Brazil

Earlier Report Observations

The Brazilian corn oil market volume grew substantially from 129.4 thousand tons in 2018 to 265.6 thousand tons in 2021. This expansion was primarily driven by the rapid scale-up of corn ethanol production, which generates corn oil as a by-product. The entry of major players like Inpasa, which began operations in 2019 and became the largest corn ethanol producer in South America, alongside supportive biofuel regulations, consistently boosted supply. Concurrently, shifting consumer preferences toward healthier and sustainably sourced vegetable oils supported domestic demand.

After peaking in 2021, the domestic market volume stabilized at 261.8 thousand tons in 2022 and then declined to 222.1 thousand tons in 2023. While new ethanol plants, such as Usina Boa Vista in Goiás, continued to come online in 2022, climatic factors and agricultural management issues affected corn yields and oil production. During this period, rising international demand for corn oil for industrial and feed uses led to a sharp increase in exports, which reached 86.9 thousand tons in 2023, reducing the volume available for domestic consumption.

Production corn oil and fractions in Brazil

In kind, 2018-2021, K t

Brazil was one of the world's top producers of corn oil and fractions from 2018 to 2021, ranking third globally by production volume during this period.

Top producers of corn oil and fractions, 2018-2021

World map of production of corn oil and fractions, 2018-2021

Brazil's production of corn oil and fractions grew for the third consecutive year. In 2021, the country produced 305.3 thousand tons, marking a significant increase of 47.8% compared to the previous year. From 2018 to 2021, production rose by 109.8%, which translates to an average annual growth rate of 28.0%.

Annual dynamics of production in Brazil in kind, 2018-2021, K t

Exports corn oil and fractions from Brazil

Exports in kind, t

The export market showed considerable volatility during these years. Exports reached their lowest point in 2019 at 16 305 tons, then peaked in 2021 at 44 301 tons, representing a 2.7-fold increase between these two years. In 2021, export volume surged by 38.7% year-over-year. The largest decline occurred in 2019, with a drop of 19.8%, while the most substantial increase was recorded in 2020, at 95.9%.

Annual dynamics of product's exports from Brazil in kind, 2018-2021, t

From 2018 to 2021, the main markets for Brazil's corn oil and fractions exports were Tunisia, accounting for 58.2% of exports in kind, South Korea with 9.7%, and Spain at 9.0%. Together, these three countries represented 76.9% of total export flows.

Structure of product's exports in kind by countries, 2018-2021

World map of product's exports from Brazil in kind, 2018-2021

Exports in value, K $ US

The data indicates irregular changes, reflecting a volatile market environment. Exports in value terms hit their lowest point in 2019 at 10 385 thousand US dollars, then reached a peak in 2021 at 55 401 thousand US dollars, showing a 5.3-fold increase. In 2021, export value jumped by 114.7% compared to the previous year. The largest decline was in 2019, at 29.9%, while the biggest increase occurred in 2020, with a rise of 148.5%.

Annual dynamics of product's exports from Brazil in value, 2018-2021, K $ US

Between 2018 and 2021, the primary buyers of Brazil's corn oil and fractions in value terms were Tunisia, which accounted for 56.0% of exports, South Korea at 8.9%, and Spain with 8.8%. Collectively, these markets made up 73.7% of total export value.

Structure of product's exports in value by countries, 2018-2021

World map of product's exports from Brazil in value, 2018-2021

Imports corn oil and fractions to Brazil

Imports in kind, t

Market performance for imports showed noticeable fluctuations during this period. Imports were at their lowest in 2018, then peaked in 2019 at 17 230 tons, resulting in a 4.2-fold difference between these years. In 2021, Brazil imported 4 559 tons of corn oil and fractions, a decrease of 66.3% year-over-year. The largest increase was recorded in 2019, at 316.3%.

Annual dynamics of product's imports to Brazil in kind, 2018-2021, t

From 2018 to 2021, corn oil and fractions imported into Brazil were primarily sourced from Paraguay, which accounted for 92.9% of total imports in kind.

Structure of product's imports in kind by countries, 2018-2021

World map of product's imports to Brazil in kind, 2018-2021

Imports in value, K $ US

Volatility characterized the import market during these years. Imports in value terms were at their minimum in 2018, then reached a maximum in 2019 at 7 851 thousand US dollars, with a 2.8-fold variation between these points. In 2021, Brazil imported corn oil and fractions valued at 14.1% less than the previous year. The largest increase was in 2019, at 183.6%.

Annual dynamics of product's imports to Brazil in value, 2018-2021, K $ US

Over the 2018–2021 period, Paraguay was the dominant supplier of corn oil and fractions to Brazil in value terms, accounting for 77.3% of total imports, with other countries making up the remainder.

Structure of product's imports in value by countries, 2018-2021

World map of product's imports to Brazil in value, 2018-2021