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October 10, 2011

 

Russia's grain sets new high record

 

 

Russian Prime Minister Vladimir Putin said that the country harvested 90 million tonnes of grain as of early this month, which is 1.5 times higher than last year's indices.

 

Experts say that from July-September Russia exported about 10 million tonnes of grain. 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 tonnes of grain abroad. And by statistics, export volumes are growing from month to month. Russia has never exported food products in such volumes over the past 20 years.

 

Andrei Sizov, Sovekon head said a few words about the reasons for success in this field. "Factor number one is the restoration of crop this year - altogether, 90 million tonnes, 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 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. Arkady Zlochevsky believes that Russia's export potential will reach 30 million tonnes at the minimum this year.

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