Brazil is on track for record corn oil production, projected to reach approximately 430,000 tons by the end of 2025. This volume represents a drastic change in the national landscape, driven primarily by the expansion of the corn ethanol industry.

Ângelo Pedrosa, Director of Vinculum Agro Consultoria, points out that approximately 320,000 tons of corn oil are expected to come from the biofuel industry.

The wet milling industry, focused on the production of starches and other derivatives, is expected to generate approximately 85,000 tons. The dry milling industry will contribute approximately 25,000 tons.

"In total, I believe we will have approximately 380,000 tons of oil in Brazil—adding up the various direct industrial sources—but everything suggests that Brazil will produce approximately 430,000 tons of corn oil by the end of this year," concludes the director of Vinculum Agro Consultoria, solidifying the vision of a rapidly expanding market.

The growth in oil supply is a direct reflection of advances in corn processing for energy purposes. "Without a doubt, corn oil is growing significantly in Brazil, and this growth is primarily driven by the increased supply from corn ethanol production," the expert emphasizes.

In 2013, Brazil crushed at least 100,000 tons of corn for ethanol production. Twelve years later, the country is on track to process approximately 20 million tons of the grain for the same purpose. "This has considerably increased the supply of this corn oil, which is known as 'distiller's corn oil' (DCO)," explains Pedrosa.

At Inpasa, the largest corn ethanol producer in Latin America, the byproduct has established itself as a strategic input for multiple production chains—from animal feed to aviation.

"Corn oil generates energy for feed and is also transformed into a raw material for the production of aviation fuel," explains Gustavo Mariano, vice president of Inpasa. He adds that the product is also used to produce green diesel, used in European countries, and advanced biofuels, aligned with global decarbonization goals.

The company also invests in the oil refining stage, which allows it to deliver a final product tailored to the specific needs of each customer, whether for industrial use, energy use, or feed formulation.

One of the highlights of this diversification is Inpasa Oil Premium (IOP)—an agricultural adjuvant oil formulated from corn oil combined with high-performance additives. The product has been gaining ground in the agricultural sector as a more sustainable and efficient alternative for application in pesticides and foliar fertilizers.

"With the expansion of the Balsas, Maranhão, plant, Inpasa also strengthens its presence in this segment, promoting the comprehensive use of corn and reinforcing the grain's role as a pillar of the national bioeconomy," the company emphasized during the inauguration of the Balsas, Maranhão unit.

The Balsas unit alone will have the capacity to produce 47,000 tons of vegetable oil. In addition to supplying the domestic market, Inpasa has also expanded its presence in foreign trade, allocating part of its corn oil production for export.

The company already serves buyers in various countries and has sought to consolidate its presence in the international market through strategic partnerships and trade promotion programs.

Demand and Competitiveness

In a global vegetable oil market fueled by demand for biofuels such as biodiesel, HVO (Hydrotreated Vegetable Oil), and the future SAF (Sustainable Aviation Fuel), corn oil is emerging in Brazil as an increasingly robust competitor to traditional soybean oil. "Although corn is not an oilseed, through ethanol biorefineries, its oil is consolidating as a high-value-added product, whose growing production takes advantage of the same market opportunities opened by soybeans," Pedrosa emphasized.

According to projections from the Brazilian Association of Vegetable Oil Industries (ABIOVE), Brazil is expected to crush approximately 57 million tons of soybeans this year, resulting in nearly 12 million tons of oil. Of this volume, approximately 9 million tons already have a specific destination: biodiesel. Meanwhile, corn oil, with its projected 430,000 tons, is gaining a competitive advantage.

According to information from the National Agency of Petroleum, Natural Gas, and Biofuels (ANP), Brazil also exports corn derivatives. In April 2025, 54,200 tons of corn oil were exported, worth a record US$55.2 million. The state of Goiás stood out, with exports exceeding those of the entire year of 2024.

As Pedrosa pointed out, corn oil generates revenue that is unrelated to the price of the commodity, which in practice lowers the cost of the grain used in ethanol and increases the mill's profit margin.

"Currently, the price per kilogram of corn oil is around R$5.60. A mill that extracts 15 kg/ton generates an additional revenue of almost R$84 per ton of corn, directly reducing its costs," the expert calculates. "If this same oil is not extracted and remains in the DDG (distillers' dried grains), it will be sold at the price of DDG, which is approximately R$1,200 per ton, or R$1.20 per kilogram. The difference between selling the oil at R$5.60 or leaving it in the DDG at R$1.20 is enormous."

This economic advantage is leading biorefineries to invest increasingly in maximizing byproduct recovery. "Mills are becoming more efficient at recovering this oil and making corn ethanol operations even more competitive," concludes Pedrosa.

In the food industry, corn oil is positioning itself as a direct alternative to soybean oil, where it has already carved out a high-value niche. Its technical characteristics guarantee it a significant premium over soybean, making it the preferred choice for industries seeking performance and nutritional appeal. "The same applies to the B2B food market, to the production of dairy compounds, and to a number of industries where a more stable oil with a different nutritional appeal is needed," Pedrosa said.

Source: Notícias Agrícolas