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.

© 2015 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
Coca-Cola

Coca-Cola Sees Success In Small Pack Sizes

Coca-Cola has pointed to further signs that its turnround plan is starting to gain traction, as it reported higher earnings despite an increase in advertising costs and strong currency movements that hurt its revenues.

Mentos

Packaging of Mentos Gum Brand Deceives Customers, Lawsuit Says

The maker of a popular breath mint and gum brand is being sued in federal court over allegations that the company uses a packaging that is too large for the amount of product contained inside.

Dominique Ansel

Eater Names the 21 Best New Restaurants in America

Popular food website Eater has just released their annual list of the best new restaurants in North America.

Food Tech
Starbucks

Starbucks Partners With Lyft for My Starbucks Rewards

To expand the loyalty program of Starbucks beyond its cafes, the firm has announced its partnership with Lyft, a ride sharing company. The deal allows the drivers and passengers to earn loyalty 'stars' which can be exchanged with and drinks in any Starbucks outlet.

Cous-cous

Foodini: This Device Changes The Future of Cooking [PHOTOS]

3D printed food isn’t what you'd expect it to be.

Real Time Analytics