World meat industry news

Exports of grain processing products are growing - for example, in 2024, Russia has already supplied more of these products to foreign markets than in the entire 2023. However, experts expect difficulties in exporting, including due to growing competition.

In general, there are three main drivers for the development of exports of grain processing products, according to a statement from the Federal State Budgetary Institution Agroexport, which was reviewed by sfera.fm. The first is the situation: a stable exchange rate, stable grain prices, adequate logistics, the second is, of course, the export team, and the third is government support.

Due to successfully developed factors, in 2023, Russian exporters exported about 100 thousand tons of flour and 200 thousand tons of bran, noted Alexander Startsev, director of development, strategy and sales of Agropolis Saburovo, in a commentary for Agroexport. In 2024, export volumes continued to grow.

“The main export drivers for our enterprises in the Central Federal District were Asian countries, and in the Northwestern Federal District - China. In the first half of 2024, we shipped more flour for export than in the entire year of 2023. In the second quarter, supplies to the Philippines, Vietnam and other countries in the Asian region were increased/resumed. At the end of 2023, we had shipments to Yemen, and in 2024 there were shipments to new countries for us - Venezuela and Morocco. And if it weren’t for the grain situation, we could have continued at the same pace,” the expert comments.

But since May, the situation has changed radically, and due to the high increase in the cost of grain, supplies in July are in question, explained Alexander Startsev. The Asian direction does not yet accept the new prices; for them this is a serious increase. At the same time, there is a threat from Kazakhstan: they are planning a good harvest this year, and they will fight to restore the markets of Uzbekistan, Tajikistan, etc., which Russia has now occupied. And with rising prices for grain and logistics, it will be difficult for Russia to compete. A similar situation arises with exports to China.

“However, there is potential. We are trying to look for new directions. And if all the drivers necessary for export growth continue to work, then supplies will grow,” the expert noted.

Let us recall that the Russian Ministry of Agriculture plans to rely on expanding the export of processed products in 2024 and beyond. Russian Minister of Agriculture Oksana Lut said in an interview with the Rossiya-24 TV channel that supplies of processed products, in particular flour, will occupy an increasing share in the export of agricultural products.