Russian grain exporters will receive an additional share of the Russian Federation’s domestic agricultural market following the departure of the largest Western grain traders, including the American company Cargill and the Canadian Viterra. The vacant niches will be filled by local companies, informs Bloomberg agency.
March 29 edition of the RBC with reference to Oksana Lut, Deputy Minister of Agriculture of the Russian Federation reportedCargill Corporation’s subsidiary in Russia will stop grain exports from Russia in the future agricultural year 2023/2024 (from July 1, 2023 to June 30, 2024). Same day on Bloomberg WroteAnother big player in the Russian grain market is planning to take a similar step. It was related to the Canadian company Viterra. At the same time, the Ministry of Agriculture sureThat Cargill’s departure would not have negative consequences for grain supplies from the Russian Federation to foreign countries.
“Despite the departure of leading Western traders, Russian grain and other crops will continue to enter world markets. Within the country, local merchants will replace foreigners. And beyond its borders – where the power of Russian ports ends and the activity of foreign-flagged ships begins – Western traders will continue to supply Russian grain, ”says the material.
At the same time, Western grain traders may lose “several hundred million dollars” after leaving the Russian market. The note states that this will stem from the need to maintain control over the bunkers and export terminals.
“The only change will affect the names that indicate ownership of the logistics assets that transport grain from farms along the Volga to the ports of the Black Sea. Western traders will have to leave these bunkers and export terminals, each incurring several hundred million dollars in losses along the way.