Brazil Puts Soybean Meal on Year-Round Rails to Chase Argentina

Agriculture

Key Facts

—The move. Logistics operator VLI began tests in July to run soybean meal by rail to the northern port of Itaqui all year, not just in the harvest peak.

—The race. Brazil is projected to export about 23.2 million tonnes of soybean meal in 2025/26, closing on Argentina’s roughly 30 million.

—The port. Itaqui in Maranhão handled 20.14 million tonnes of grain in 2025, up from 11.55 million in 2021.

—The driver. A biodiesel boom leaves more crushed soybean meal to export, feeding the new flow.

—The corridor. The route runs through the Arco Norte, the cluster of northern ports now rivalling Santos for farm exports.

A quiet change on Brazil’s northern railways could help decide who feeds the world’s livestock. The logistics firm VLI is turning sporadic soybean meal shipments into a steady, year-round flow to a port in the Amazon’s shadow.

The shift sounds technical, but the stakes are large. It is part of how Brazil is closing in on Argentina, the product’s long-standing export champion, in a market that underpins global meat production.

Why year-round soybean meal rail matters

Soybean meal is what is left after the oil is pressed from the bean, and it is the main protein in feed for chickens and pigs. When Brazil ships more of it, feed costs ease for farmers from Europe to Asia.

Starting this month, the operator VLI began test runs to carry the meal by rail to the port of Itaqui, in the northern state of Maranhão, throughout the year. Until now these shipments came in bursts tied to the harvest.

The change turns an occasional cargo into a permanent one. For exporters, a constant flow smooths out the logistics bottlenecks that used to choke the system when everyone rushed to move crops at the same time.

There is a neat logic behind the extra supply. Brazil’s push into biodiesel means its factories are crushing ever more soybeans for oil, and every tonne of oil leaves behind a pile of meal that has to find a buyer abroad.

The port itself tells the story of the northern shift. Itaqui moved just over twenty million tonnes of grain in 2025, nearly double the eleven and a half million it handled in 2021.

Brazil closes on Argentina’s lead

The competitive picture is tightening fast. Projections for the 2025/26 cycle put Brazil’s soybean meal exports at about twenty-three million tonnes, against roughly thirty million for Argentina, the traditional world leader.

That gap has narrowed sharply in recent years. Every improvement in northern logistics chips away at it further, because cheaper, faster routes let Brazilian meal undercut rivals on price at the dock.

The wider prize is the Arco Norte, or Northern Arc. This is the cluster of ports in the Amazon and northeast, including Itaqui, Barcarena and Santarém, that now competes head-on with the traditional southern hub of Santos.

For grain from the interior state of Mato Grosso, the northern route can save real money. Industry estimates put the saving at roughly fifteen to twenty-five dollars a tonne compared with shipping south, a margin that adds up across millions of tonnes.

The bottlenecks have not vanished. Exporters’ association warnings note that competition for space on the rails and at the terminals still spikes during the harvest peak, and Brazil faces a storage shortfall of nearly sixteen million tonnes this year.

For a foreign reader, the takeaway is about resilience. As Brazil spreads its exports across more ports and runs them all year, it becomes a steadier supplier to a world that increasingly depends on its farms.

The country is slowly rebalancing how it moves crops. The share carried by inland waterways rose from eight percent in 2010 to fifteen percent last year, though rail actually slipped over the same span, from fifty-three percent to thirty-eight.

Trucks still carry the heaviest load, which keeps costs high. Around ninety-five percent of storage sites rely on road haulage, which is why new railways such as the FICO, FIOL and Transnordestina lines matter so much to the sector’s future.

Frequently Asked Questions

Why is Brazil’s soybean meal rail shift important?

The operator VLI is turning seasonal soybean meal shipments into a year-round rail flow to the northern port of Itaqui. A constant flow eases the logistics bottlenecks that used to choke exports during the harvest, making Brazil a steadier supplier of the animal feed the world relies on.

Is Brazil overtaking Argentina in soybean meal?

Not yet, but the gap is closing. Brazil is projected to export about twenty-three million tonnes of soybean meal in 2025/26 against Argentina’s roughly thirty million, and better northern logistics keep narrowing the distance between the two.

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