According to Oils & Fats International, citing a report from the U.S. Department of Agriculture (USDA), Argentina’s biodiesel production in 2025 is projected to fall to a record low of 1.2 billion liters, a 7% decline from the previous year.

With domestic consumption remaining stable, exports are expected to shrink to just 340 million liters — the lowest level in nearly two decades.

Soybean oil will continue to serve as the primary feedstock, but the blending rate is forecast at 6.6%, below the mandated 7.5%. Production capacity remains unchanged, leaving more than 70% idle.

The USDA noted that Argentina’s biodiesel sector has been stagnating in recent years, largely due to regulations, government policies — or the lack thereof — and broader political and economic decisions.