Brazil could triple oil palm area as biofuel demand grows

Brazil could more than triple its oil palm planted area over the next decade, expanding it from the current 280 thsd ha to 1 mln ha. Abrapalma President Victor Almeida said the main driver of this growth would be rising demand for biofuels, particularly feedstocks used to produce sustainable aviation fuel.

Brazil ranks among the world’s ten largest palm oil producers, although its output remains far below that of Indonesia and Malaysia. Most of the country’s oil palm plantations are concentrated in the Amazonian state of Pará, which accounts for more than 84% of Brazil’s palm oil production.

According to Almeida, new plantations would be established only on land cleared before 2008. This approach is intended to prevent further Amazon deforestation, support the restoration of degraded land and provide additional income for smallholder farmers in the region.

One of the Brazilian sector’s main advantages is the traceability system introduced in Pará. It allows producers to demonstrate that palm oil supplied for biofuel production, including exports to Europe, is not linked to recent deforestation. Large companies combine production from their own plantations with purchases from smallholders under long-term supply agreements.

Industry representatives stressed, however, that the expansion plans would depend on stable government policies. The sector requires long-term financing, access to subsidized credit and protection of the domestic market from repeated import duty exemptions for palm oil.

Tags: palm oil, Brazil