Russian Grain Crops Decline, Export Ban Likely

Jul 19, 2012 06:36 AM EDT | By Sriranjini

  • print
wheat
Ukraine bans wheat exports. Argentina's poor weather and export curbs will affect its wheat output. (Photo : flickr.com/Mr.Bologna)

Russian grain crops are likely to fall in 2012-13 as a result of drought.

Last year, Russia saw a record crop of 94.2 million tons, out of which 27.6 million tonne was exported. However, this year, the grain crop may decline to around 82 million tonnes.

Like Us on Facebook

Russia is the third biggest exporter of wheat this is likely to drop from last year's 56.2 million tonnes to somewhere between 47 and 49 million tonnes.

"Russia's grain exports have slowed this year due to drought in the south and a rail disruption in the Black Sea port of Novorossiysk area because of flash floods", says Oleg Rogachev, first deputy chief executive officer of Rusagotrans, a transport company. July shipments are expected to be 1.2 million tons, Rusagrotrans estimates. That compares with 2.4 million tons in 2011, according to state statistics data.

A top grain analyst predicts that the grain exports could be even lower than expected.

"The outlook for the harvest is worsening," says Andrei Sizov Sr., CEO of SovEcon.  In all the key producing regions, except the Central Federal District, production is expected below last year's."

Many now believe that Russia may ban grain exports to maintain domestic supply, like it did in the year 2010. But, government officials have refuted this belief.

"There will be a meeting on the grain market," said Arkady Dvorkovich, Deputy Prime Minister of Russia, to Reuters Tuesday. "I see no basis for limiting exports."

Since the export ban in 2010, Russia has been trying to assure markets that such a thing is unlikely to happen again.

But, flash floods in the south and a drought in the Black Sea region has destroyed about 3.4 percent of the grain crop. This, along with a Goldman Sachs report, has prompted the belief that a ban is inevitable.

© 2014 Food World News. All rights reserved. Do not reproduce without permission.
Get the Most Popular Food Stories in a Weekly Newsletter
TrendingOn The Web
Food Biz
Starbucks Introduces Wireless Chargers In 200 Stores

Starbucks Introduces Wireless Chargers In 200 Stores

Starbucks Wireless Chargers – Starbucks announced that from Tuesday, there would be 200 stores in the San Francisco Bay Area which count with wireless charging spots.

Thai Chicken Bone Broth Soup with ginger and lime

Reasons Why Bone Broth Is Better Than Any Other Vitamins

The latest food fad? Bone broth! If you are searching for nutritious yet cheap soup that you can have in any part of the day, bone broth is the answer. Go to the nearest grocery and pack yourself some animal bones, green vegetables and herbs.

Different types of rice have different levels of arsenic content depending on where it grows.

Arsenic Rice: Should We Worry About It?

Arsenic rice is the next scary thing that we have known. The news came out in 2012 and it becomes one of the most bothering things to deal with.

Food Tech
RMAX YAMAHA

Grape Growers Might Use Drones For Planting

Grape growers might be using drones in order to explore any potential that technology might bring in order to do agricultural chores such as crop spraying, irrigation and monitoring.

Le Cirque 40th Anniversary Dinner Hosted by Sirio Maccioni - Food Network New York City Wine & Food Festival Presented By FOOD & WINE

Cocoa Shortage In 2020? Biggest Chocolate Company Warns That Things Could Get Tough For Chocolatiers

Chocolate is one of the most universally loved things in the entire world, between its own flavor and all the delicious things its sweet taste can be involved in - but, according to experts, there could be a cocoa shortage in 2020 that could almost disappear chocolate off shelves and raise its prices.

Lee Memorial Health System

Food Means Medicine, Lee Memorial Health System Improves Cafeteria

The Lee Memorial Health System has announced that they believe food is very important in the recovery of patients in their hospital so they are really working on making their cafeteria be different and defy the generalization of people that hospital food is not really appetizing.

Real Time Analytics