Ukraine Loses High-Protein Wheat Export Markets
Ukrainian wheat has become uncompetitive in export markets where buyers require grain with a protein content of at least 12.5%. According to Anton Zhemerdiev, Deputy General Director for Commercial Affairs at “TAS Agro,” achieving such indicators in Ukraine is extremely difficult, which is causing the country to lose positions in a number of important export markets.
This is reported by AgroReview
Africa and Asia Prefer Russian Wheat
High-protein wheat is in greatest demand in African countries, particularly in Kenya and Nigeria. It is here that Russian trade diplomacy is actively working, offering grain with the necessary quality indicators. Ukrainian grain typically does not meet these requirements, limiting its presence in such markets.
“No matter how strange it sounds, considering their balances and consumption levels, they specifically require 12.5% protein and not lower. And Russian trade diplomacy is very active there. So, if 11.5% is acceptable for most, but if the threshold is set at 12.5% — Russia is present, and we are not,” says Zhemerdiev.
Losses in Key Markets and Reorientation to Europe
Hazem Saker, Senior Trader at Promising International Trading Co. DMCC (UAE), notes that Ukraine has already lost a significant share of wheat sales markets in Asia and Africa. In Egypt, for instance, Russian products hold dominant positions, and Ukrainian exporters have had to reorient themselves to the European market, where the margin is only $1–2 per ton, which does not ensure profitable trading.
The situation in other markets is also bleak. In Sudan, Ethiopia, and Tunisia, Ukrainian wheat is virtually absent. For example, in Tunisia, 75% of imported wheat is Russian, while the rest is French. Ukraine has lost not only the opportunity for profitable exports but also the trust of buyers.
“Regaining these markets will be extremely difficult. I do not see the volumes we could supply there that would make it truly worthwhile. It is simply impossible,” he concluded.