EU Deforestation Rules Threaten Brazilian Soymeal Exports

The European Union will implement new anti-deforestation regulations (EUDR) on December 30, requiring importers to prove products are not linked to deforested land. These rules threaten to curb soymeal exports from Brazil, the bloc's largest supplier, as structural and logistical hurdles in tracing supply chains from central Brazil could shut out up to 4 million tons of product.

The European Feed Manufacturers’ Federation has assigned Brazil a medium risk rating, while granting low risk ratings to Argentina and Paraguay. This regulatory shift follows a provisional free-trade agreement reached in May between the EU and the Mercosur trade group.

Argentina is positioning itself to fill the potential supply gap, citing the proximity of its Pampas farmlands to export hubs and its VISEC traceability system. Paraguay's grains crushing chamber, CAPPRO, also claims the country is well-positioned to meet the requirements. In response, Aprosoja president Mauricio Buffon argued that the legislation unfairly targets Brazil, suggesting the country's environmental issues are smaller than the scale of its agriculture.