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The Netherlands rejected at least two shipments of soybean meal from Argentina this month after identifying genetic material not approved in the European Union, the HB4 gene. Dutch authorities had already been warning the Argentinians and have now made the rejection effective. Similar problems were recorded on Brazilian soybean meal vessels. On the Chicago Board of Trade, the July soybean meal contract has accumulated a 5.01% increase in one month, reaching US$328.80 per short ton.
Brazilian and Argentinean soybean has just entered alert due to a decision by the Netherlands that could redraw the global flow of the grain’s meal. The European country, one of the main importers of soybean meal in the European Union, rejected at least two shipments from Argentina this month after identifying the presence of the HB4 gene, genetic material not approved in the bloc. Dutch authorities had already been issuing warnings on April 14 and 17, and now the rejection has materialized, creating a deadlock that affects the world’s largest exporter of soybean meal and oil.
The problem is not exclusive to Argentina: Brazilian soybean meal vessels also showed similar records. The central question is whether other European countries will follow the example of the Netherlands and begin to reject shipments from South America, which would force Brazil and Argentina to test and segregate all meal destined for Europe to ensure the absence of the HB4 gene. On the Chicago Board, meal prices have already reacted with an almost 3% increase in a single day, and the accumulated one-month gain exceeds 5%.
What is the HB4 gene and why doesn’t Europe accept it?
According to information released in agricultural news, HB4 is a genetic modification developed in Argentina that gives soybean greater drought tolerance, a valuable characteristic in a scenario of climate change that reduces water availability for agriculture. The gene has been approved for cultivation and commercialization in Argentina and other countries, but the European Union has not authorized its use, which makes any product containing HB4 genetic material irregular in the European market.
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The identification of the gene in meal shipments exported by Argentina indicates that the segregation between conventional soybean and HB4 soybean is not working effectively in the country’s production chain. From rural properties to processing plants and logistics agents, there are points where cross-contamination can occur, and the Netherlands has decided that the risk is sufficient to justify the rejection of the shipments.
How Dutch rejection affects Brazil and Argentina
Argentina is the world’s largest exporter of soybean meal and oil, and Europe is its main buying market. The rejection by the Netherlands directly impacts the Argentine export chain, which now needs to review processes from the field to the port to ensure that the HB4 gene does not contaminate shipments destined for the European bloc. Argentine and Dutch authorities are already meeting to resolve the impasse.
For Brazil, the situation is one of alert. Similar problems have been recorded on Brazilian soybean meal vessels, which means that cross-contamination may not be exclusive to Argentina. If the Netherlands or other European countries begin to systematically reject Brazilian shipments, the impact will be significant for an industry that expects to crush a record volume of 62.2 million tons of soybean in 2026 and export 24.6 million tons of meal.
What happens if other European countries follow the Netherlands
For now, the rejection is restricted to the Netherlands. Eduardo Vanin, senior agriculture strategist at Marex and analyst at Agrinvest Commodities, explains that the big question is what other European countries will do. “If other countries also start to warn, deny, and reject these shipments, Brazil and Argentina will have to start testing and segregating meal for this gene,” says the specialist.
The European Union is the largest global importer of soybean meal, and a widespread rejection would force a complete restructuring of the South American export chain. The cost of testing each shipment and segregating conventional soybeans from genetically modified ones with HB4 would be absorbed by producers and processors, reducing margins in a market where logistical efficiency is crucial for competitiveness.
The impact on meal prices at the Chicago Board of Trade
Soybean meal prices at the Chicago Board of Trade already reflect the tension. The July contract has accumulated a 5.01% increase in one month, rising from US$313 to US$328.80 per short ton. The August contract shows gains of 3.41%, testing US$321.70. In Monday’s session (28), prices rose almost 3% in a single day, although they took profits on Tuesday.
Vanin considers that the firmness of meal on the Chicago Board of Trade is due more to factors in the American market than to the Dutch warning. “We have strong domestic demand in the US, strong export demand, logistical issues, and problems still caused by snowstorms that occurred in winter,” he explains. The American market operates in a moment of restricted supply and high demand, which sustains prices regardless of the Netherlands factor.
Brazil’s moment in soybean crushing and what’s at stake
Despite the warning, the moment for the Brazilian processing industry is favorable. Abiove estimates a record crushing of 62.2 million tons of soybeans in 2026, with production of 47.9 million tons of meal and 12.5 million tons of oil. Meal exports are expected to grow from 23.27 to 24.6 million tons, driven by global demand for vegetable proteins for animal feed.
The risk is that the HB4 issue compromises access to the European market precisely when Brazil is expanding its processing capacity. If Europe tightens controls and Brazil cannot guarantee gene segregation, the country could lose ground to competitors like the United States, which already operate with a strong domestic market and adjusted logistics. For now, Vanin does not believe the situation favors Brazil, but he recognizes that the scenario could change rapidly depending on the reaction of other European countries.
Do you follow the soybean market or work in agribusiness and have already felt the impact of this rejection? Tell us in the comments if you think Brazil will be able to segregate meal with the HB4 gene or if Europe will end up blocking Brazilian shipments too.
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