SAO PAULO, Sept 22 (Reuters) - Brazil's soybean

processors are expected to invest 5.9 billion reais ($1.11

billion) over the next 12 months as companies respond to growing

demand for biodiesel, oilseed lobby Abiove said on Monday.

The investments would boost the country's processing

capacity by 8%, or roughly 6 million metric tons per year in a

sector dominated by companies such as Bunge, ADM,

and Cargill.

Brazil, the world's largest soybean producer and exporter,

is the third-largest processor of the oilseed, behind China and

the United States, according to data from the U.S. Department of

Agriculture (USDA).

According to Abiove, companies are committed to increasing

processing capacity to produce more biodiesel. Brazil mandates

blending of 15% of biodiesel into diesel and that is expected to

rise.

If all planned investments are confirmed, Brazil's crushing

capacity could rise to above 80 million tons per year, Abiove

said.

"The increase in installed capacity demonstrates the

industry's dynamism and the sector's strategic importance to the

Brazilian economy," said Daniel Amaral, Abiove's economic

affairs director.

About 75% of the country's biodiesel is produced from soy,

oil regulator ANP says.

Compared to 2024, the number of soy processing firms in

Brazil rose to 75 from 67, and the number of plants grew to 144

from 132, Abiove said.

In 2025, the industry's idle capacity is equivalent to 3.87

million tons of processing per year, while in 2024 it was around

4.7 million tons.

($1 = 5.3174 reais)