Volga Baikal AGRO News Update on Russian Agriculture – Bloomberg Recognized the Dominance of Russia in the Global Wheat Market !!!

Volga Baikal AGRO News Update on Russian Agriculture – Bloomberg Recognized the Dominance of Russia in the Global Wheat Market !!!

In the coming months, Russia may face competition from Canada and Australia, where yields are rising.

In recent years, Russia has steadily expanded its share of the global wheat market and seeks to consolidate its leadership in this area, according to an article by Bloomberg.

The authors of the material note that over 20 years Russia has turned from a wheat importer into an exporter with a share of 20% of world supplies. More than a hundred countries buy Russian grain, including Egypt, the Philippines, and Saudi Arabia. More recently, Algeria expressed its readiness to buy Russian wheat. The authors of the article consider this a “breakthrough”.

“There has been a staggering increase in both production and wheat exports from Russia. It has worked hard to increase its market share, and that share continues to grow, ”said James Boulsworth, director of UK-based CRM AgriCommodities.

Last week, the Algerian Grains Agency announced its readiness to purchase products from Russia from the next tender. Earlier, our country supplied Algeria, which is the world’s third-largest grain importer, a small amount of wheat, since the African state put forward very stringent requirements for the level of damage to products by insects.

Also this year Saudi Arabia began to buy grain from Russia. In addition, in recent years, supplies have begun to Turkey, Brazil, Vietnam, Tanzania. In total, over 37 million tons of wheat from Russia is expected to be exported in 2020.

The article notes that over ten years Russia has won a significant share of the world market from the European Union and the United States. In Egypt, for example, our country accounts for 80% of the won tenders, and supplies to Algeria will deal a serious blow to France, for which the African state is the largest sales market.

However, the authors of the article warn that in the coming months Russia may face competition from Canada and Australia, where yields are growing.

The publication also notes the significant progress of Russian farmers. They used the growing revenues to buy fertilizer and top-notch equipment, which allowed them to increase their yields, and also expanded grain storage capacity to better control prices.

“Their grain is of such good quality that they open up new markets year after year,” said Georgy Slavov, head of fundamental research at the British brokerage company Marex Spectron.

Low logistics costs have helped Russia capture market share from suppliers like the United States, he said.

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Agriculture News Russia and World Grain News !!!