Argentina’s biodiesel industry is facing one of its worst crises in years. According to the Rosario Board of Trade, production and exports have collapsed to historic lows. By August 2025, total biodiesel sales reached only 640,000 tons — the lowest since 2008 — while exports plunged 52% year-on-year to just 14,000 tons. Once a major global supplier, Argentina’s share of world biodiesel output has dropped from 7.8% in 2017 to about 1.5% in 2025. The crisis stems from lower domestic blending mandates under Law 27.640 (reduced from 10% to 7.5%), shrinking export markets in the U.S. and EU, and growing competition from renewable diesel (HVO). Without a new biofuels law to raise blending targets and reopen export channels, analysts warn the industry could continue to decline, undermining Argentina’s soybean value chain, employment, and energy transition goals.