Major grain traders in Russia have agreed to create a new exporters’ association, called the Russian Union of Grain Exporters. “Its creation will help to improve the coordination of grain exporters among themselves and with government authorities,” the founders said in their statement.
Russia’s largest traders are creating a new union of grain exporters. Aston JSC, Glencore Agro IGC, OZK-Yug LLC and Rif Trading House LLC, signed a memorandum on the establishment of the Union of Grain Exporters. The four largest companies in the grain market, which account for more than a third of all grain exports from Russia, will be among the founders of the new association,” according to the press release. According to representatives of the mentioned companies, the new union will focus on promotion of grain and grain legumes produced in Russia, as well as their processed products on international markets.
Russia’s agriculture ministry has been meeting regularly with big exporters since September to monitor exports amid a lower 2018 crop. In February, it asked the industry to set up a new grain exporters’ union, saying that would help it to better understand the needs of the market. The creation of the union is expected to contribute to better coordination of grain exporters among themselves and with government authorities.The union, in particular, plans to participate in lawmaking, identify and implement foreign practices in the field of ensuring and confirming the quality of grain and its products, assist in the development of special laboratories and expert agencies, the use of digital technologies and information systems. Eduard Zernin, Deputy General Director of the United Grain Company will become Executive Director of the Union.
In early February 2019, the Agriculture Ministry announced that it was to initiate the creation of a union of grain exporters in Russia in order to better understand market trends and demands. Currently, the main associations, including companies-exporters of grain, are the Russian Grain Union and the National Association of Exporters of Agricultural Products.
Russia’s grain supplies abroad could play a key role in President Vladimir Putin plan, announced a year ago, to increase the country’s exports of agricultural products to $45 billion by 2024.That is a big challenge for the agriculture ministry, which is overseeing the initiative, as agricultural exports totalled $26 billion last year, including $10 billion of grain.