The export market for cereals is slowly but developing. Recently, revenue in the currency for the sale of agricultural raw materials has noticeably increased. The issue of increasing revenues during the sale of finished products becomes urgent. Last season a new record was set – the sale of grain for export helped the farmers earn $ 7.2 billion.
Sale of grain for export- the problems of the industry
To achieve such indicators became possible due to the pricing policy on the world market, and not by increasing sales. On the contrary, exports declined compared with the previous agricultural season, the supply of wheat and barley decreased. Despite this, there are record sales of corn. The volume of its exports amounted to 21.4 million tons and exceeded last year’s figure by 10%.
Egypt has been the largest buyer of grain for 8 years. Deliveries to the country account for more than 9% of total sales. Italy, China, Spain, the Netherlands, and other countries continue to be importers of domestic grain.
Such tendencies in the agrarian sphere are encouraging, but not all experts are optimistic. They insist on increasing the supply of finished products at a higher price, instead of selling raw materials. A vivid example of this is African countries that export domestic wheat. There it is processed and supplied more expensively to the European market, where pasta is made from it. It would be much more profitable to sell already finished products, but such a market has high competition.
At the moment, the state occupies a leading position in the sale of grain for export, and it is important to keep this result. And finished products have increased requirements and standards, which without the reorganization of the processing industry will be difficult to adhere.
In addition, the European market is rather limited due to food culture. Therefore, it is necessary to focus on it only if the products are of high quality and can offer options with a complicated recipe: cereals, breakfast cereals.
The important point is to find your niche where the competition will be lower. Now it is organic, products from the category “Bio.”
Expanding exports of finished products requires careful analysis and elaboration of the strategy. You should not expect high sales volumes at first, in this case progress will be slow.
They hinder the development of export quotas, which Europe has limited to supplying a number of goods, including malt and wheat fiber. But despite all the difficulties, farmers are looking for different directions to expand sales of products, both finished and in the form of raw materials. Positive trends in the industry are noticeable, albeit at a slow pace.