Russia could have its Flour exports increase to 950.000 tonnes this year, up from 881.000 tonnes in 2022. However, the value will fall from $352 million to $285 million due to falling prices, the Union of Flour and Groats Enterprises predicts.
“Flour exports increased sharply last year, from 261.100 tons in 2021 to 881.000 tons. And we want to at least maintain these quantities, and better yet increase them,” said Igor Sviridenko, president of the association, at the Mill-2023 conference in Moscow.
“At the beginning of the year, we were more optimistic about the development of flour exports, saying that they could exceed 1 million tons for the first time in Russia's history. But it is still too early to say how the situation will develop,” he said.
According to him, the conditions for growth are present. So far, exports have increased by 11,5 percent compared to the previous year.
At the same time, Sviridenko pointed out that flour prices on the world market have fallen, which has led to a reduction in forecast export earnings. In addition, competition is intensifying with major flour exporters such as Turkey and Kazakhstan, which, according to Sviridenko, “protect their interests through a more favorable geographical location.”
According to Sviridenko, maintaining and increasing export volumes will depend on government support. “It is necessary to at least maintain the current state support measures, especially the subsidization of the transport of grain and its processed products,” said the union leader.
Source: oleoscope (Russian)