Soybean oilcake market in MERCOSUR

Earlier Report Observations

The soybean oilcake market in MERCOSUR showed considerable volatility from 2018 to 2023. Market volume dropped from 21 203 thousand tons in 2018 to 16 550 thousand tons in 2019, then expanded strongly to 24 677 thousand tons in 2020 and further to 26 392 thousand tons in 2021. A sharp contraction followed in 2022, bringing volume down to 17 116 thousand tons, before a recovery to 26 163 thousand tons in 2023. This pattern was shaped by key regional supply, trade policy, and demand factors.

A significant decline in the regional soybean harvest in 2018, notably in Argentina and Paraguay, constrained the raw material base for oilcake production, contributing to the reduced market volume the following year. The market's expansion in 2020 and 2021 occurred without specific disruptive factors reported. The substantial drop in 2022 coincided with the improved market access for soybean products under the MERCOSUR-European Union agreement, which spurred exports and reduced domestic availability. The strong rebound in 2023 was driven by steady demand from the animal feed industry and sustained Chinese purchasing of Brazilian soy, supporting high processing activity and market volume.

Production soybean oilcake in MERCOSUR

In kind, 2017-2020, K t

Top producers of soybean oilcake, 2017-2020

World map of production of soybean oilcake, 2017-2020

Soybean oilcake production in MERCOSUR rebounded in 2020 after two consecutive years of decline. In 2019, production hit its lowest point at 62 578 K t, but then increased by 5.3% in 2020 to reach 65 924 K t. The most significant drop occurred in 2018, when production fell by 3.9%.

Annual dynamics of production in MERCOSUR in kind, 2017-2020, K t

In value, 2017-2020, M $ US

In 2020, the value of soybean oilcake production in MERCOSUR rose to 22 526 M $ US, marking a 9.7% increase compared to the previous year. The lowest value was recorded in 2019 at 20 538 M $ US, while the highest was in 2018 at 24 655 M $ US. Over the 2017-2020 period, production value grew by 2.6%, with a compound annual growth rate of 0.8%. The largest decline occurred in 2019, when the value dropped by 16.7%, whereas the biggest increase was in 2018, with a 12.3% rise.

Annual dynamics of production in MERCOSUR in value, 2017-2020, M $ US

Exports soybean oilcake from MERCOSUR

Exports in kind, K t

Soybean oilcake exports from MERCOSUR declined to 41 266 K t in 2020, representing a 10.4% decrease from 2019. The highest export volume was recorded in 2019 at 46 041 K t, which also saw the largest increase of 8.0% that year. Between 2017 and 2020, exports fell by 7.7%, corresponding to an annualized decline rate of 2.6%.

Annual dynamics of product's exports from MERCOSUR in kind, 2017-2020, K t

From 2017 to 2020, the geographical distribution of soybean oilcake exports from MERCOSUR was highly diversified. Vietnam accounted for 10.2% of exports in kind, Indonesia for 10.1%, and the Netherlands for 6.6%. Together, these three countries made up only 26.9% of total export flows, with the remaining 73.1% spread across numerous smaller trading partners.

Structure of product's exports in kind by countries, 2017-2020

World map of product's exports from MERCOSUR in kind, 2017-2020

Exports in value, M $ US

MERCOSUR's soybean oilcake export value declined for the second year in a row in 2020, dropping to 14 100 M $ US, which is 6.7% lower than in 2019. The peak value was recorded in 2018 at 16 472 M $ US, which also experienced the largest increase of 11.4%. The most significant decline occurred in 2019, with an 8.3% drop. Over the 2017-2020 period, export value decreased by 4.7%, with a compound annual decline rate of 1.6%.

Annual dynamics of product's exports from MERCOSUR in value, 2017-2020, M $ US

Between 2017 and 2020, Indonesia, Vietnam, and the Netherlands were notable but not dominant buyers of soybean oilcake from MERCOSUR in value terms. Indonesia accounted for 10.2% of export value, Vietnam for 9.9%, and the Netherlands for 7.4%. Their combined share reached only 27.5% of total exports, indicating a broad distribution among other markets.

Structure of product's exports in value by countries, 2017-2020

World map of product's exports from MERCOSUR in value, 2017-2020

Imports soybean oilcake to MERCOSUR

Imports in kind, K t

Soybean oilcake imports into MERCOSUR surged in 2020 after two years of decline, reaching a total of value_last_year K t. This represents a sharp 58.3% increase compared to 2019, when imports hit their lowest point at 12 K t. The largest decline occurred in 2019, with a 47.0% drop. Over the 2017-2020 period, imports decreased by 45.7%, equating to an annualized decline rate of 18.4%.

Annual dynamics of product's imports to MERCOSUR in kind, 2017-2020, K t

From 2017 to 2020, Bolivia and the United States were the primary sources for soybean oilcake imports into MERCOSUR in kind, jointly accounting for 2.1% of total import flows.

Structure of product's imports in kind by countries, 2017-2020

World map of product's imports to MERCOSUR in kind, 2017-2020

Imports in value, M $ US

In 2020, foreign soybean oilcake supplies to MERCOSUR totaled 10 M $ US, down by 30.7% from the previous year. The largest increase was recorded in 2019, with a 28.9% rise. Between 2017 and 2020, imports decreased by 33.7%, corresponding to an annualized decline rate of 12.8%.

Annual dynamics of product's imports to MERCOSUR in value, 2017-2020, M $ US

Throughout 2017-2020, soybean oilcake imports into MERCOSUR in value terms were not concentrated among a few key markets. The United States accounted for 4.6% of import value, Bolivia for 1.4%, and Spain for 1.1%. Together, these three countries made up only 7.1% of total import flows.

Structure of product's imports in value by countries, 2017-2020

World map of product's imports to MERCOSUR in value, 2017-2020