October 13, 2004

Russia Grain Union Urges Exports To China
 
Russia should develop grain exports to China, who is a major world buyer, according to Russian Grain Union President Arkady Zlochevsky on Tuesday.
 
Zlochevsky said China's import potential is substantial, which means that Russia could arrange exports that would not compete with those from Ukraine or Kazakhstan.
 
But Zlochevsky added that sizeable exports to China could start only with the help of politicians and diplomats to arrange trade ties as well as developing transportation infrastructure in Siberia.
 
Russia is expected to export around eight million metric tons of grain in the 2004-05 marketing year, up from 5.85 million tons in 2003-04. Wheat exports are seen at around five million tons, up from 3.2 million in 2003-04.
 
China's wheat imports are estimated at around eight million tons in 2004-05, up from 3.75 million in 2003-04. The rise is due to falling stocks in China, as production remains below consumption.
 
The grain union unites major Russian grain producers and millers and is the industry' major lobbyist.