Russia's dominance of the world wheat exports keeps growing
RUSSIA has gone from being reliant on wheat imports to accounting for a fifth of global sales, as its soils generate bigger harvests at lower prices, reports Bloomberg
RUSSIA has gone from being reliant on wheat imports to accounting for a fifth of global sales, as its soils generate bigger harvests at lower prices, reports Bloomberg.
More than 100 nations from Egypt to the Philippines buy its grain, and Russia has sought to extend that list by adding markets where its wheat has been excluded because of quality issues.
That ambition passed a milestone recently when major buyer Algeria gave Russia the green light to step up shipments.
'You can see the staggering increase in both production and exports from Russia,' said the UK's CRM AgriCommodities' James Bolesworth. 'Russia has invested heavily to increase market share and it's still growing.'
Russia has been invited to Algerian tenders and a French trader said the country may relax its bug rules. Saudi Arabia has already relaxed its bug rules, and Russia increased wheat exports to Turkey, Brazil, Vietnam and Tanzania.
Helped by its second-largest harvest ever, Russia is expected to ship out 37.5 million tons this season and reclaim its ranking as the world's top exporter.
Russian farmers have come a long way since Soviet-era collectives gave way to private ownership. They've used rising incomes to invest in fertilisers and top-of-the-line equipment to further boost output, and expanded storage to give them more control over holding onto grain for better prices.