The Lipid Library

OILS AND FATS IN THE MARKET PLACE

MAJOR PRODUCING AND CONSUMING COUNTRIES
ARGENTINA AND BRAZIL

These two South American countries together are the largest producers and exporters of soybeans and their products since they overtook the United States. Between them they produced 105 million tonnes in 2005/06. Over the past ten years output has increased more than four-fold in Argentina (from 11.0 million tonnes) and more than doubled in Brazil (from 27.3 million tonnes). Brazil exports a lot of soybeans while Argentina exports fewer beans but more soybean oil and, in the future, more soybean esters for biodiesel.

Table 1. Oilseed production and trade (million tonnes) in Argentina and Brazil in 2006/07.
	Argentina	Brazil
Total crop	50.5	61.9
Soybean	46.2	59.0
Sunflower seed	3.4
Cottonseed		2.3
Other	0.9	0.6
Exports	8.0	25.5
Soybean	7.5	25.4
Imports	1.7	0.2

Soybean oil is dominant among oils and fats in both counties in respect of production, exports, and consumption. In addition there is tallow in both countries and a second seed oil that is sunflower in Argentina and cottonseed in Brazil. There is a difference between the two countries in respect of consumption. This relates to the low population in Argentina (40 million) and the higher population in Brazil (192 million). Exports from Argentina are almost eight times local consumption but in Brazil this ratio is less than one half.

Table 2. Oils and fats (million tonnes) in Argentina and Brazil in 2006/07: production, trade, and consumption.
	total	soya	sun	cotton	palm	lard	tallow
Argentina
Production	8.56	6.72	1.41				0.18
Exports	7.56	6.25	1.15
Disappearance	1.00	0.39	0.31				0.16
Kg/person/year	25.3
Brazil
Production	7.49	5.76		0.26	0.18	0.37	0.56
Imports	0.24				0.10
Exports	2.34	2.22
Disappearance	5.30	3.45		0.23	0.26	0.37	0.53
Kg/person/year	27.6
sun (sunflower seed oil) Disappearance = consumption for food and non-food purposes.

Updated: 2/5/2008 Credits/disclaimer	Scottish Crop Research Institute (and MRS Lipid Analysis Unit), Invergowrie, Dundee (DD2 5DA), Scotland