Food Industry News

Russian wheat and good with ergot

Egypt canceled the requirement for zero content of ergot in wheat import them because they do not receive any proposals for the past three tenders, Reuters reported with reference to the Egyptian government.

Limit introduced in late August. Ergot - parasitic fungus that infects some cereals, international standards allow its content in the grain to 0,05%. Earlier this content allowed in contracts for the supply of wheat to Egypt. Due to the restrictions imposed by the country suspended deliveries - Egypt could not buy 540 000 t.

Earlier, one of the Russian exporters told "Vedomosti" that comply with zero content of ergot in the party is theoretically possible, but extremely difficult. At the same time in Russia in 2016, the expected record grain crop - 113-116 million tons and exports - about 40 million tons, according to the Ministry of Agriculture forecasts. According to the USDA, in the current season Russia will become the world's largest exporter of wheat. In the agricultural season 2015 / 16 Russia shipped to Egypt sent a quarter of all wheat exports (6,1 million tonnes, see. Graph).

After limiting the share of the content of ergot Russia suspended deliveries of all fruit and vegetables from Egypt to 22 September indefinitely, citing a high phytosanitary risk. Some market participants called it a response to the limitations of Egypt. However, Deputy Prime Minister Arkady Dvorkovich assured then that the two events are not connected. So says the representative of the Rosselkhoznadzor Julia chalk.

On Monday, 19 September, representatives of the Egyptian phytosanitary department confirmed to Rosselkhoznadzor the possibility of meeting in the near future, the date has not yet been fixed, Melano said.

The highest dependence on Russian supplies of citrus from Egypt, according to the Russian Union of fruit and vegetable. In 2015 was from Egypt were imported into Russia citrus $ 153 million - 16% of all Russian imports of citrus fruits, according to the Federal Customs Service. During January - August 2016, the dependence on citrus shipments from Egypt increased from up to 21,8 25,1% yoy.

The ban on the content of ergot in grain was not profitable either Russia or Egypt, says the president of the National Association of agricultural exporters Sergey Balan. Egypt is threatened with a shortage of grain, because the prohibition applies not only to Russia, but for Russia it meant the complete loss of the export market in this country. In the current season Russia expected to deliver at least 8 million tons, said Balan. Cancel restrictions will impact positively on Russia - will lead to the stabilization of prices, he said.

The reason for lifting the ban could be the pressure of the Russian authorities and the failure of the tender involves general director of the Institute for Agricultural Market Studies Dmitry Rylko. Lifting of the ban on the part of Egypt was expected, adds the director of the analytical center "Sovecon" Andrey Sizov.

Over the past three weeks the price of wheat in the Novorossiysk port decreased from $ 175 to $ 169 1 per ton, resulting in data Sizov. Restrictions in Egypt have been one of the reasons, but not the only one, he said. According to the "Banner of Lenin's" cooperative chairman Yuri Haramain, fell and domestic prices in Russia: fourth-grade wheat prices dropped by 500 rubles. to 8700-8800 rubles. for 1 t.

See also ... 12 / 09 / 2016 Egypt banned the import of wheat with ergot19 / 08 / 2013 Egypt's problems will push Russia to seek new grain markets20 / 09 / 2016 Russian wheat continues to fall in price22 / 07 / 2015 Egypt / 22 / 07 Egypt 2013 / 08 Egypt ready to resume wheat purchases in Russia02 / 2016 / 03 Egypt canceled another tender for the purchase of wheat02 / 2016 / 28 Egypt asks Russia for preferential wheat08 / 2015 / 60 Egypt will buy another 13 thousand tons of wheat from Russia02 / 2015 not ready to cancel Grain for Egypt08 / 04 / 2014 Expo mercury from Russia grew by 47,3% 12 / 09 / 2012 Egypt hastily buys Russian wheat22 / 09 / 2016 Egypt lifted the ban on the import of wheat with ergot13 / 09 / 2016 Russia is ready for negotiations with Egypt on grain24 / 07 2013 centners per hectare - Ministry of Agriculture30 / 29 / 04 Russia - the largest wheat exporter in the world

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