Russia's grain exports drop 23% amid fewer exporters, ports

Russia exported approximately 2.5 million tonnes of grain between December 1 and December 23, a 23.2% decline compared to the same period in 2023, according to the Russian Grain Union (RGU).

The number of companies involved in grain exports during the period fell sharply to 32, down from 74 a year earlier, while the number of export ports decreased from 24 to 20, Caliber.Az reports via Russian media.

Elena Tyurina, head of the RGU analytical department, reported significant declines in key grain categories. Wheat exports dropped 9.3%, maize exports plunged 70%, and barley exports fell 67%.

“By the end of December, wheat shipments may reach 3.1 million tonnes, compared to 3.6 million tonnes in December last year,” Tyurina said.

Notably, in November, Russian farmers reported a significant reduction in wheat production this year, prompted by adverse weather conditions, including frosts, drought, and heavy rains during the harvest season. The wheat harvest was projected to fall to 83 million tons, down from 92.8 million tons in 2023 and a record 104.2 million tons in 2022. 

As a result, many farmers began shifting away from wheat in favour of more profitable crops, such as peas, lentils, and sunflowers. This move was expected to impact global wheat prices and inflation, particularly in major importing countries like Egypt, where wheat is a key staple.

Despite Russia's position as the world's leading wheat exporter, these changes posed a challenge to President Vladimir Putin's strategy of expanding agricultural exports and enhancing Russia's global influence. The country's wheat export pace, which had been near record levels in recent months, was forecast to slow due to the poor harvest and new export restrictions, including a planned reduction in the export quota by two-thirds from January 2025.

In Siberia's Omsk region, farmer Maxim Levshunov reflected on his losses, noting that much of his wheat crop, damaged by rain, was now only suitable for animal feed. Overall, Russia’s share of the global wheat trade was predicted to decline, with significant financial losses for many farmers.

By Aghakazim Guliyev