IKAR in Mass Media

Russian Wheat Gets a Step Closer to Reaching EU’s Top Market

10 февраля 2020 года

(Bloomberg) -- Russia is moving closer to breaking into the Algerian wheat market, and potentially bringing new competition to the European Union.

A trial cargo of Russian grain passed quality tests in Algeria, according to Yulia Koroleva, director of Russia’s grains testing and certification body. While Algeria still remains closed to Russia, negotiations are planned in the “near future” about gaining access, she said.

Russia has sought to make inroads for years in Algeria, which ranks among the world’s top importers. Its grain typically doesn’t meet the nation’s quality standards for issues like bug damage. Access to Algeria would pose a challenge to the EU, particularly for France, which counts Algeria as its top buyer.

In recent years, Russia’s ballooning wheat shipments have challenged the EU’s export share in markets across Africa and the Middle East. Still, European exports are posting a strong rebound this season after a bumper harvest.

Since gaining access in Saudi Arabia last year -- another mainstay EU customer -- Russia has yet to ship any cargoes as its prices are uncompetitive, Koroleva said.

Russia Wheat Gets Another Market as Saudi Eases Import Rules.

Russia is also continuing to work on accessing Iraq, a market that’s proven difficult to crack. Iraqi officials last year said Russia’s supplies were too low on gluten, but they would consider imports if the content improves.

Source: Bloomberg | #grain #WhereTheMarginIs | Comments: 0 Views: 61

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