Ukraine lost important wheat markets in Asia and Africa
Ukraine has practically lost wheat markets in Asia and Africa, while focusing on exporting its products to Europe. Latifundist writes this, citing Ukrainian traders.
“We have lost 70% of the Egyptian market. All Ukrainian exporters have reoriented to Europe. We have lost not only the moment when it was possible to profitably sell to Egypt, but also the trust of the Egyptian buyer,” said the company Promising International Trading Co. DMCC.
As traders noted, in Tunisia, 75% of imported wheat is Russian, another part is French, and there is almost no Ukrainian. Positions have also been lost in the Sudan and Ethiopia markets.
In many African countries, in particular in Kenya and Nigeria, wheat with a high protein content (12.5%), which is mainly lacking in Ukrainian wheat, is in demand.
“And Russian trade diplomacy is very active there. That is, if 11.5% is acceptable to the majority, but if there is a threshold of 12.5%, Russia is present, but we are not,” TAS Agro added.
Market participants also spoke about the difficulties in the Asian market, in particular in Bangladesh and Indonesia. In such markets, the Russians are also trying to crowd out competitors.
“We see how they are actively selling for rupees to India, going to barter, and delving into cooperation with China. In fact, they are hedging the risk. Because at any moment new restrictions may appear that will stop trade or access to currency. And therefore, in markets such as Kenya, Nigeria, and Bangladesh, they are simply dumping and knocking out competitors,” TAS Agro noted.
According to traders, Russian companies are ready to work on deferred payment terms, while Ukrainian companies mainly insist on payment immediately after loading the vessel.
According to the publication, in the future, due to the restrictions of the European Union, Ukrainian exporters will have to give in to prices and restructure logistics. For example, if earlier traders could unite and send small batches of grain to Europe, now they will have to focus on larger batches.
Further development of the grain and oilseed markets of Ukraine and the Black Sea region will be in the spotlight of the BLACK SEA GRAIN. KYIV conference, taking place on April 22–23 in Kyiv. The event will focus on strategic directions for the agricultural sector through 2030, including investments, energy independence, processing, and exports of high-value products.
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