A Ukrainian military journalist hides in a wheat field while filming a video. (Photo by Scott Olson/Getty Images)
- This year’s wheat harvest in Russia may reach a record 100 million tons, reports SovEcon.
- But a significant part of it can accumulate in Russia, and not be exported.
- Russian food exports are not subject to sanctions, but many firms are wary of trading with the country.
- For more stories, see www.BusinessInsider.co.za.
Russia may have a bumper wheat crop this year, but it may not translate into bountiful exports to combat the global food crisis. This year’s wheat harvest in the country may reach a record 100 million tons SoEcon, research firm specializing in Black Sea grains and oilseeds.
According to the US Department of Agriculture, Russia is the world’s leading exporter of wheat, accounting for about one-fifth of global wheat exports.
SovEcon’s forecast is a 33% increase over the country’s wheat crop of 75.2 million tons last year, according to the USDA.
But “this huge harvest does not fully translate into huge exports,” Andrey Sizov, managing director of SovEcon, told Bloomberg on Friday. Issues such as higher state taxes, export taxes and logistical disruptions due to the war in Ukraine are keeping Russian wheat at home, he added.
Companies can also boycott or be extra cautious about doing business with the country. “Despite the fact that food supplies are not subject to Western sanctions in the interest of fighting food security, bankers and insurance companies are wary of doing business with Russia, while shipping companies do not want to risk sending their ships to the zone of the conflict,” wrote the independent Alexandra Prokopenko. analyst September 16.
The intergovernmental International Grains Council forecasts global wheat production at 792 million tonnes this year – higher than its forecast for world consumption of 785 million tonnes, the council said in a report released on Thursday.