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Volga Baikal AGRO News Update on the Russian Agriculture Grain Export !!!
Russian exporters will be able to participate in grain tenders in Algeria
Russian exporters got the opportunity to start participating in Algerian grain tenders after Algeria changed the requirements for wheat quality, RIA Novosti reports, citing a statement from Deputy Agriculture Minister Sergei Levin. The country, whose market has traditionally been dominated by France, after lengthy negotiations, softened the condition on the percentage of the bug-turtle from 0.1% to 0.5%.
The head of the Algerian Interprofessional Bureau for Grains (OAIC) Abderahman Bushahda noted that Algeria intends to update the short list of wheat exporters to the country. “And I would like Russia to be on this list <…>. We urge Russian exporters to behave more aggressively in this market, ”he said (quoted by Reuters). At the moment, Algeria is not ready to further change the phytosanitary requirements for imported wheat, but will continue to work on this, Bushahda added.
Rabah Fillali, director of plant protection and technical control of the Algerian Ministry of Agriculture, said the problems between Algeria and Russia regarding phytosanitary norms will be solved by a joint plant protection agreement, which he suggested will be signed soon, Reuters reported.
As the director general of the Institute for Agricultural Market Studies Dmitry Rylko said earlier, not all manufacturers will be able to overcome the 0.5% threshold, even the Krasnodar Territory, which is closest to Algeria, balances on this indicator. Nevertheless, subject to a decrease in the phytosanitary threshold, he estimated the potential of Russian wheat exports to Algeria at 2 million tons. “Demand for Russian wheat this season is high even without Algeria. But other things being equal, exports to this country can amount to up to 1 million tons, “- quoted by” Interfax “Chairman of the Board of the Union of Grain Exporters Eduard Zernin.
According to the vice-president of the Russian Grain Union Alexander Korbut, the opening of this market is important for Russia, because Algeria is a large buyer from the Maghreb countries, which has consistently imported wheat from France, which provided 50-80% of its needs. Since the country has significantly reduced the supply of wheat due to drought and crop failure (from 5 million tons to 1.5-2.5 million tons), Russian grain will be in demand on the Algerian market, the expert said. “The fundamental issue is the conditions and requirements for Russian wheat. They are tougher than the French one. But given the fact that the domestic grain business is able to work, I think that we will be able to withstand these requirements and enter this market. There is a lot of work ahead,” – Korbut commented to Agroinvestor.
For a full-fledged entry into the Algerian market, Russia wants to talk about easing the requirements for the percentage of infestation by a turtle bug to 1%, but for milling wheat there is another indicator – the falling number. In many ways, everything will depend on the ratio of grain damage and other quality indicators, adds Korbut.
According to the forecast of the analytical center Rusagrotrans, Russia in October will reduce grain exports to 4.9-5 million tons.” This is significantly lower than was exported in September – 5.8 million tons, “- said the head of the center Igor Pavensky to Interfax. In particular, the supply of wheat is estimated at 4.3-4.4 million tons (4.9 million tons in September), barley – up to 0.5 million tons (0.8 million tons) and corn – up to 0.1 million tons (82 thousand tons). The center’s previous forecast for October was 5.5 million tons. It was changed due to a decrease in supplies through the port of Kavkaz and small ports of the Azov-Black Sea basin.
