Farming News - Russian grain exports reach new highs.

Russian grain exports reach new highs.

Russia harvested 90 million tons of grain by the beginning of this month, Prime Minister Vladimir Putin said. These figures are one and a half times higher than last year’s indices. Russia is strengthening its positions on the world grain market, broadening the geography of supplies. Experts say that from July to September Russia exported about 10 million tons of grain. Unprecedented figures in all post-Soviet history.

Russian grain exporters who returned to the world market after nearly a one-year embargo can be satisfied. In July, when a grain export ban was lifted, Russia sold nearly 10 million tons of grain abroad. And judging by statistics, export volumes are growing from month to month. These are record indices. Russia has never exported foodstuffs in such volumes over the past 20 years. Head of the analytical centre “Sovekon” Andrei Sizov said a few words about the reasons for success in this field.

"Factor No. 1 is the restoration of crop this year – altogether, 90 million tons, which is visibly higher than last year’s crop, which reached 61 million. New importers of Russian grain, including, for example, South European countries, are emerging today. In the former times such volumes of grain were never supplied to South Europe. Partly, this is explained by the fact that the export of grain from Ukraine is very slow.  That is why some contracts are being fulfilled by Russian producers."

The diversification of Russian grain export has become visible in recent times, the President of the Russian Grain Union Arkady  Zlochevsky  says.

"There’re new directions here – meaning, first of all, South East Asian markets and countries in the Pacific. Big shipments of grain are supplied there. Last February we held a conference in Singapore, which enabled   consumers in South Asia to learn more about our grain. Then for the period of the embargo our work was halted. And now, once the embargo has been lifted, we resumed our work, and systematic, not pilot, supplies of Russian grain to Thailand and Indonesia have started."

Besides, soon Russia plans to broaden its presence on the Middle East grain market and on Africa’s grain market. Saudi Arabia, the delegation of which visited Moscow this summer may become one of Russia’s leading partners. There’re also plans to set up a joint venture and trans-shipping grain warehouses. The more so as there’re resources for this. Arkady Zlochevsky believes that Russia’s export potential will reach 30 million tons at the minimum this year.

Source Voice of Russia