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Biodiesel exports to Europe by major producers in Argentina are set to fall by 50% this year compared to last year due to severe drought affecting the country’s main productive regions, according to sources quoted in a report by local news website El Destape.

"2022 ended well, with full execution of the European Union quota, but this year the drought will impact the volumes to be sold," the source said.

Biodiesel exports to Europe in 2022 totalled 1.2M tonnes and had a total value of around US$1.8bn, the 21 March report said.

As the biodiesel market in the USA continued to be blocked following the imposition of tariff barriers, Europe was the only export destination currently open to Argentine biodiesel, El Destape wrote.

In addition, drought conditions in Argentina continued to affect production and the soyabean harvest would be the lowest in the last decade, according to the Rosario Grain Exchange.

In value terms, the loss in biodiesel exports would be around US$900M, the report said.

The main exporters of biodiesel in Argentina are Cargill, Aceitera General Deheza (AGD), Bunge Argentina, LDC, Molinos and Cofco, according to the report.