News Russia
Russian agricultural exports are growing despite embargo
Russian agricultural exports grew significantly last year, in both volume and value. This, despite all kinds of Western sanctions. 14 new markets were opened, mainly in Africa and Asia. Especially with grains and oilseeds, but also with meat and dairy.
A total of $45 billion was exported last year, according to the Russian Ministry of Agriculture and the Russian Statistical Agency. These figures do not include exports to countries of the Eurasian Union (Belarus, Kazakhstan, etc.) nor do they include exports to Syria and Iran. The volume of exports increased by 35%, the value by 10% compared to 2022. Russia is conquering a new market mainly thanks to low prices and high product availability.
Place on Chinese market
Russia itself attaches particular importance to exports to China, where, for example, it would like to replace Western exporters on the market for, among other things, pork, grains and flour and for oilseeds and derivatives thereof.
In September last year, Russia was given permission in principle to export pork to China, but only from those areas guaranteed to be free of African Swine Fever. Both countries have experience with this animal disease and want to keep it firmly under control.
Southeast Asia and North Africa
The Chinese import market for pork is estimated at 7 to 8 million tons per year, with domestic consumption of 60 million tons. Russia hopes that a number of Siberian meat companies in particular will be able to profit from this lucrative market. Other markets in Southeast Asia, such as Vietnam and Hong Kong, are also being viewed with interest.
The export of poultry meat is assessed as less important, but Russia reports that it has also taken important steps in the North African market. Algeria in particular has become an important market.
Grain exports are the largest in terms of volume and rose by 19% in the first eleven months of last year to almost 844.000 tons, according to figures from Rosagroexport. This product mainly goes to Iraq, Afghanistan, Georgia and China, but also to Europe. The European trade embargo does not apply to all agricultural and food products. Russia is still the fifth largest exporter of grains to the EU, it reports. Indonesia is also seen as an important market.
Growing flour exports
In addition to grain, Russia is also exporting more and more flour. The reason for this is that the levy on grain has been quite high in recent years, but not on flour, so more product is first processed in Russia itself. +2022% in 350, only double digits last year. According to the magazine Agro-Investor, the Russian flour manufacturer association expects to export more than 1 million tons of flour this year for the first time.
Turkey
In addition to grains, Russia also exports large quantities of oilseeds; sunflower seeds, rapeseed and soybeans. A large part of this goes, whether or not processed, to China and India, but an equally large part goes directly across the Black Sea to Turkey to be processed there. Turkey occupies a special position. It disapproves of the Russian invasion of Ukraine and also participates in Western sanctions policy, but on the other hand it is not always strict.
Klaas van der Horst
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