A new vision for agriculture
momagri, movement for a world agricultural organization, is a think tank chaired by Christian Pèes.
It brings together, managers from the agricultural world and important people from external perspectives,
such as health, development, strategy and defense. Its objective is to promote regulation
of agricultural markets by creating new evaluation tools, such as economic models and indicators,
and by drawing up proposals for an agricultural and international food policy.
A look at the news

Russia putting pressure on world wheat market

29 August 2011

A year after unilaterally implementing its grain embargo following the raging fires that affected the country, Russia is conducting an active strategy to recapture the world wheat market through a rock-bottom pricing policy.

The targeted goal is to become again a key player in international wheat trade and to rank right behind the United States as the world’s second largest exporter. To that end, Russia does not hesitate to implement an aggressive pricing policy that proposes prices much lower than the most competitive European prices. In early August, 240,000 tons of wheat were thus sold to Egypt - the world’s first largest wheat importer - for an average of $250/ton, or $38 lower than the best European quotation.

Such price levels, which are economically sustainable for Russia because its average wheat production price per ton is considerably lower than that of European farms, enable the country to regain the market shares lost following the summer 2010 fires. Since July 1, over 720,000 tons of wheat have been sold to Egypt, and both Thailand and Myanmar - historical buyers of Australian wheat - are showing a keen interest in Russian wheat.

Russia’s approach first meets the need to reclaim the client base it gave up without notice in 2010, while it also testifies to the fact that agriculture is considered a strategic sector serving national interests as well as Russia’s position as a key player in international trade.

In the future, the very structures of the global wheat market might be altered, raising some concern regarding increased price volatility. So, obviously, a question arises: Will Russia’s policy continue to change according to its crops, while it aspires to command more clout in the international arena ?

Page Header
Paris, 24 April 2019