Soyabean production in Uruguay is forecast to rebound sharply in 2026/27 following a drought-reduced crop the previous year, according to a report by the US Department of Agriculture (USDA).
Output was expected to recover to 3.1M tonnes due to improved yields and a modest expansion of planted area to 1.3M ha, the 7 April ‘Uruguay: Oilseeds and Products Annual’ said.
Expectations of an El Niño year – bringing wetter conditions – could also boost yields and production.
“Soyabeans are a well-established [crop] and the planted area generally fluctuates little as soyabeans are widely regarded as the most manageable summer crop requiring fewer interventions, less expensive seed and consistently strong export demand over corn or other crops,” the USDA said.
However, producers face continued pressure from low global soyabean prices and persistently high input costs, according to the report.
“Uruguay’s production costs are higher than neighbouring countries and the country exports nearly all its soyabeans, making producers highly vulnerable to international price fluctuations,” the USDA said.
“Planted area in 2026/27 will ultimately depend on global prices at harvest and in the months leading up to planting.”
Uruguay’s geography constrains potential soyabean area expansion as much of the country’s arable land is better suited for cattle grazing than row crops, according to the report.
Grain and oilseed production is concentrated in the western corridor, particularly the departments of Soriano, Río Negro and Colonia where soils were more fertile and closer to export infrastructure along the Uruguay River.
Exports were projected to rise to 2.8M tonnes, driven by sustained demand from China, while crushing remained limited at 150,000 tonnes due to Uruguay’s small crushing capacity.
“China is projected to remain the dominant buyer of Uruguayan soyabean exports in 2026/27, typically accounting for more than 80% of total shipments,” the USDA said.
“This share is expected to remain stable or potentially increase closer to 90%, reflecting strong and consistent demand.”
Secondary destinations, including Egypt and Bangladesh, were expected to continue importing smaller volumes although no clear second major market has emerged, according to the report.
Egypt, a historically important but inconsistent buyer, re-emerged as Uruguay’s third largest market in 2025, although accounted for only 4% of total exports.
Uruguay’s soyabean processing industry remained limited in scale, particularly when compared to neighbouring Argentina and Paraguay, the report said.
“As a result, the country produces modest volumes of soyabean meal and soyabean oil mostly for domestic consumption in the livestock industry, which itself is relatively small,” the USDA said.
“Uruguay is a net importer of both products and remains heavily dependent on imports to meet domestic demand.”
Increased crushing in 2026/27 was expected to lead to production of approximately 120,000 tonnes of soyabean meal and 28,000 tonnes of soyabean meal.
“Despite this jump from the previous year, Uruguay’s crush represents less than 10% of its soyabean production. The country’s crush capacity and infrastructure remain limited, with a single major industrial crushing facility located in Paysandú accounting for nearly the entire volume,” the USDA said.
“No additional capacity expansions or new facility constructions are currently planned.”
Due to its limited domestic crushing capacity, Uruguay exports most of its soyabean production as whole beans, while importing soyabean meal and soyabean oil to meet domestic feed and food requirements.
In 2026/27, imports were expected to account for nearly 60% of domestic soyabean meal consumption, sourced primarily from Argentina and Paraguay.
Imported soyabean meal is mainly used in the dairy, poultry and swine industries, according to the report.
“Uruguay does export small quantities of processed soyabean products, primarily to regional markets. In 2025, Uruguay exported approximately 200,000 tonnes of soyabean meal and 40,000 tonnes of soyabean oil, with Brazil and Chile being the primary destinations,” the USDA said.
Further expansion of soyabean meal and soyabean oil exports is constrained by Uruguay’s limited processing infrastructure and the highly competitive regional crush industry, particularly in Argentina, according to the report.
At the time of the report, no government subsidies, tariffs or regulatory mechanisms specific to soyabean oil or soyabean meal were available that would promote or restrict trade.
