Russia’s control over global food supplies may increase after two of the biggest international traders (US food company Cargill Inc. and global grain trader Viterra) announced that they will stop buying grain for export from Russia. Agency reports Bloomberg.
The agency’s material says that Cargill Inc. is leaving. and Viterra means that Russia, the world’s largest wheat exporter, will have more control over its food supply and more revenue.
Bloomberg highlighted that Russia’s dominance of the global grain market emerged after price increases in 2022 amid supply disruptions following the launch of a special military operation in Ukraine.
According to agency sources, international agro-industry company Archer-Daniels-Midland Co. it is also considering options to end its main operations in Russia, and Louis Dreyfus is considering reducing its presence in the country.
According to Bloomberg, following the split of Cargill and Viterra, Russia’s grain stocks will be largely in the hands of domestic and state-financed companies, meaning Russia will control most of the much-needed revenue. According to experts, this situation involves more risks for the market.
The article also highlights that these companies shipped about 14% of Russian grain last season, so most exports will remain the same.
formerly Bloomberg knowledgeable That Western grain traders would lose “hundreds of millions of dollars” if they left Russia.