Ukraine faces fierce competition in the Egyptian grain market – PROMETEY

Traditionally, Egypt is a key importer of Ukrainian wheat. According to the latest export statistics, Egypt is among the top 5 major grain importers. However, the volumes of Ukrainian grain supplies to this country are decreasing with each subsequent season.

This was reported by analysts of PROMETEY agricultural holding.

Russian grain is a tough competitor to Ukrainian grain. In the first half of 2024, a total of 7.3 mln tons of wheat were imported to Egypt. Only 1.16 mln tons of it came from Ukraine. At the same time, Russia supplied 5.68 mln tons of wheat to Egypt.

Oleg Yashulin, Head of the Foreign Economic Activity Department at PROMETEY, believes that Russian wheat is benefiting from unfair dumping. The grain is of low quality and, accordingly, has a lower price.

“…In addition, Russia exports wheat from the occupied territories of Ukraine, in particular from Crimea. And it sells it at low prices. Ukraine cannot sell so cheaply, so we have a situation where Russia sells for $215 and Ukraine for $240. The difference is as much as $25. Sometimes even $27,” says Oleg Yashulin, Head of Foreign Economic Activity at PROMETEY.

In his opinion, today there are prospects for profitable wheat sales on the European market.

At the same time, it makes sense for Ukrainians to export corn to Egypt. Ukraine maintains a leading position among corn exporters to Egypt. Since the beginning of 2024, the Ukrainian agricultural producer has sold almost 2.5 mln tons of corn to Egypt. While Russia is not even in the top three.

PROMETEY, which has been doing business in the Egyptian market since the beginning of Russia’s full-scale invasion of Ukraine, is determined to continue to fight for market share in this country.

In addition, the company plans to actively develop European markets.

“I think that Ukrainian wheat should be exported to the European market. The harvest there is poor, and fodder can be sold at a higher price. As well as Morocco and Tunisia,” says Oleg Yashulin.

Since the beginning of 2024, the largest importers of Ukrainian grain to the EU have been Spain, Italy, Portugal, and Romania. PROMETEY is currently actively exploring the Spanish market and plans to expand its capacities there. But they are not going to leave the Egyptian market.

Tags: Ukraine, Egypt, grain, wheat, Prometey