Russian Buckwheat Exports Growing

Russian has managed to win a considerable part of the North African market and start expansion in Southeast Asia amid decreasing domestic prices. Russia is going to become the world’s third largest buckwheat exporter, having supplanted the United States and Australia from the Asian markets.

Last year, prices of buckwheat futures dropped by 20% amid the growing global buckwheat stocks and the record harvests in the past fifty years. In this connection, the world's largest exporter, the United States, lost some part of its market in North Africa and the Near East, where Russia broke the American monopoly.

In the competition for the Asia-Pacific Region, Moscow’s competitor is Australia, which is going to launch a price war.

According to the Russian Grain Union, Southeast Asia relies on supplies from Australia, the United States, Canada, and India. Demand for imports—15.85 million tonnes—has grown by 40% over the past 4 years. The largest importer is Indonesia.

In 2012, according to the United States Department of Commerce, Russian buckwheat exports will increase fivefold and reach a record of 20.5 million tonnes.

These figures are confirmed by the data from the Ministry for Economic Development of the Russian Federation – exports via the Far East will grow very fast and may reach 1 million tonnes by 2013, with total exports estimated at 22 million tonnes.

Against this background, U.S. exports will fall by 24% to 26.5 million tonnes. Increase in Australian exports will reach a record of 20%.

The bulk of Russia’s buckwheat production is provided by the Altai Territory, accounting for up to 50% of the annual yield.

firstnews.ru