African breakthrough: Algeria will turn Russia into a leading wheat exporter

Moscow has significantly expanded its share of the international wheat market over the past few years, and is now beginning to export grain to Algeria, with a population of about 40 million. This country, being the third largest importer of wheat in the world, will make Russia the leading exporter of grain on the planet, writes the American agency Bloomberg.

For 20 years, Russia has turned from an importer of wheat, who bought it in other countries, into a state, which accounts for 20% of all grain exports. Now more than 100 countries buy Russian wheat, while Russia is constantly expanding its list of customers.

Having reached an agreement with Algeria, Russia has made a real African breakthrough. Earlier, Algeria put forward very strict requirements for the quality of products, but softened the requests and purchased a trial batch of grain from the Russians. After that, the Algerian Grain Agency announced that it was ready to purchase wheat from Russia. This was a real blow to France, and, according to forecasts, the export of French wheat outside the EU will be cut in half in 2020.

There has been a staggering increase in both production volumes and the scale of wheat exports from Russia. It has worked hard to increase its market share and that share continues to grow

- noted James Bowlesworth, director of CRM AgriCommodities from the UK.

In 2019, Saudi Arabia opened its market for Russians, which also relaxed its quality requirements. In 2020, Russia has harvested a gigantic wheat crop and is likely to export at least 37,5 million tons.

Over the past decade, cheap wheat has allowed Russia to squeeze the US and the EU on the world market. Russia is still feeling confident from Turkey to Brazil and from Vietnam to Tanzania, but it may face increased competition from Canada and Australia, where yields have increased.
  • Photos used:
Dear reader, to leave comments on the publication, you must sign in.
  1. Ibuprofen Offline Ibuprofen
    Ibuprofen (Novel) 25 September 2020 09: 14
    Well, actually a reason for pride is so-so. Trade in agricultural products is also a raw material sector of the economy, much like trade in oil.
    The added value is low, so there is little benefit to the country's economy. The first place in the market is captured by dumping, i.e. trade below market price. This business is very strongly monopolized in our country, not as an oilman, of course, but also noticeably. those. profit is received by a rather limited circle of those close to the trough.
    1. Vladimir Tuzakov (Vladimir Tuzakov) 25 September 2020 13: 29
      If honey, then bitter, if apples, then rotten ... Compare the income received, so the military-industrial complex for export will go to the second ... Revenues are very timely, especially with a drawdown in hydrocarbons ...
      1. Ibuprofen Offline Ibuprofen
        Ibuprofen (Novel) 25 September 2020 14: 16
        So the income is someone. In the right hands, the right people. And then to offshore companies.
        1. Vladimir Tuzakov (Vladimir Tuzakov) 25 September 2020 15: 14
          Not everything is so gloomy, there will be duties, taxes ... Yes, jobs and other expenses fall on many. Of course, a lot goes into certain hands, but these are no longer hydrocarbons, it is necessary to work harder here ... And in general, not to whine, but to participate in all legal directions to create a more just Russia ...
          1. Ibuprofen Offline Ibuprofen
            Ibuprofen (Novel) 25 September 2020 16: 50
            Quote: Vladimir Tuzakov
            there will be duties, taxes ..

            Duties and taxes on agricultural products are much lower than on the oil industry. There are all sorts of benefits.
            And the people do not work much more than in the oil industry.