World meat industry news

As a result of a sharp decline in agricultural exports, the Russian domestic market risks facing a dangerous oversupply of grain and wheat. It is reported by "Rossiyskaya Gazeta" with reference to market participants.

“With the huge harvest that Russia already has, exports should be tens of percent higher than the average. We are threatened with overstocking of the domestic market,” Andrey Sizov, head of the Sovecon analytical agency, warned.

The volume of export of grain crops, according to the data at the beginning of this week, amounted to 2.7 million tons, of which 2.2 million tons fell on the export of wheat. For comparison, at the end of 2021, Russia sent 5 million tons of grain abroad, including 4.5 million tons of wheat. Currently, the export of this crop is 20% behind the average export rates typical for the end of summer, according to the Russian Grain Union (RGU).

Another factor negatively affecting suppliers' profits is the floating duty. It has led to the fact that it has become unprofitable for manufacturers to sell products at relatively low prices, said Alexander Korbut, Vice President of the RGU.

“Agricultural producers are in thought: is it worth selling at this price - there is no special result. On the other hand, it is a strong ruble, which also negatively affects export opportunities,” Korbut concluded.