06.03.2024, 09:09
The Union of Grain Exporters told about Russia's share in the world market
Source: OREANDA-NEWS
OREANDA-NEWS Russia's share in the global grain market is approaching 25%. Every fourth ton of grain sold on the world market comes from Russia, according to Eduard Zernin, chairman of the board of the Russian Grain Exporters Union.
Zernin noted that last season Russia's market share was 20% and this season it has already reached 25%. He emphasized that the attempts to "eliminate" Russian grain from the market have failed, as Russian exporters have established direct ties and not only filled the gap created by these global institutions, but also increased their exports. However, challenges related to fierce competition on the market remain, particularly the game of reducing the cost of grains on global exchanges.In the absence of other price indicators, the entire market is guided by the prices set by Chicago and Paris, which are the two grain exchanges that currently exist. Zernin believes this to be fundamentally wrong, as neither he, as the largest manufacturer in the industry, nor his colleagues in the store, nor consumers, are really interested in relying on third-party countries.
In addition to this, there have been new issues with mutual settlements, not just for banks in countries that are not friendly, but also for those in friendly countries that have stopped payments. This is a very concerning trend, as Zernin understands that they are being pressured by these countries and that it is not their own decision, as no one would willingly give up a profitable business relationship with them.In this regard, the Union of Exporters has taken the initiative with the Ministry of Agriculture of Russia and the government to create a grain exchange within the BRICS framework. This is a first international exchange that could unify, first and foremost, those countries that are members of the BRICS political alliance, the head of the organization believes.
"We believe that this will be a strategic advantage, which will allow us to plan for long-term supplies and confidently move towards our goal of increasing grain exports and other products. All standard agricultural products that are traditionally traded in commodity exchanges can also be traded on the new exchange, Zernin emphasized.
In 2023, Russia supplied agricultural products worth at least $43.5 billion to foreign markets. By the end of 2022, this amounted to $41.6 billion, the President said on Tuesday, adding that it is planned for the Russian Federation to export up to 65 million tonnes of grain to foreign countries in 2023 and 2024.
Zernin noted that last season Russia's market share was 20% and this season it has already reached 25%. He emphasized that the attempts to "eliminate" Russian grain from the market have failed, as Russian exporters have established direct ties and not only filled the gap created by these global institutions, but also increased their exports. However, challenges related to fierce competition on the market remain, particularly the game of reducing the cost of grains on global exchanges.In the absence of other price indicators, the entire market is guided by the prices set by Chicago and Paris, which are the two grain exchanges that currently exist. Zernin believes this to be fundamentally wrong, as neither he, as the largest manufacturer in the industry, nor his colleagues in the store, nor consumers, are really interested in relying on third-party countries.
In addition to this, there have been new issues with mutual settlements, not just for banks in countries that are not friendly, but also for those in friendly countries that have stopped payments. This is a very concerning trend, as Zernin understands that they are being pressured by these countries and that it is not their own decision, as no one would willingly give up a profitable business relationship with them.In this regard, the Union of Exporters has taken the initiative with the Ministry of Agriculture of Russia and the government to create a grain exchange within the BRICS framework. This is a first international exchange that could unify, first and foremost, those countries that are members of the BRICS political alliance, the head of the organization believes.
"We believe that this will be a strategic advantage, which will allow us to plan for long-term supplies and confidently move towards our goal of increasing grain exports and other products. All standard agricultural products that are traditionally traded in commodity exchanges can also be traded on the new exchange, Zernin emphasized.
In 2023, Russia supplied agricultural products worth at least $43.5 billion to foreign markets. By the end of 2022, this amounted to $41.6 billion, the President said on Tuesday, adding that it is planned for the Russian Federation to export up to 65 million tonnes of grain to foreign countries in 2023 and 2024.
Комментарии