InVivo eyes Ukrainian wheat to counter Russian export expansion

Agricutural cooperative InVivo is studying how it might source Ukrainian wheat alongside its core French supplies to develop new export markets after losing out to Russian wheat in Algeria, the group’s chief executive said on Wednesday.

The group, with activities from grain trading to wine distribution, opened a Saudi office this year and saw selling Ukrainian wheat as a way to gain scale in the Middle East in the future, Thierry Blandinieres told.

“The Black Sea zone is crucial to balance your business model if you want to ship to the Middle East and China,” he said on the sidelines of the SIAL food trade show.

“Between Ukrainian wheat and French wheat there’s the possibility of exporting all year round at a competitive price.”

Building on the presence of its subsidiary Soufflet in the malt sector in Ukraine, InVivo is studying how to develop grain trading as part of the reconstruction of the country’s agricultural sector once the war ends, he said.

Russia has overtaken France as the main wheat supplier to Algeria in the past two years, and European traders see Moscow as using its role as the world’s largest wheat exporter to reinforce its influence in emerging countries.

Russian President Vladimir Putin on Wednesday outlined a proposed grain exchange for BRICS countries, while last week Russia’s Grain Exporters Union said that only Russian grain exporters can sell directly to sovereign buyers.

“There is a parallel market being steered by Putin versus the world market,” Blandinieres said. “We have to adapt and find new export outlets.”

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Tags: China, grain, France, InVivo, wheat, Middle East, Black Sea, markets, Algeria, Ukraine, Russia