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Speaking about tendencies of the current grain season in the region of Middle East and North Africa, we outline its main features that distinguish it from the previous one and have the largest impact on grain supplying from the Black Sea region:
* reduction of import demand for grain in the countries of MENA
Good harvest of grains due to the favorable weather conditions will result in sharp reduction of import demand for grain this season in North Africa – by 6 mln tonnes compared to 2008/09 (thereof 5 mln tons – wheat imports decrease).
* higher competition from other suppliers (USA and EU)
Since the beginning of the season we see increasing competition betweenthe Black Sea, U.S. and European suppliers for the market of MENA countries.
* tightening of quility requirements for imported wheat
Season's start was marked by a series of incidents regarding arrests of Russian, American, French wheat in Egypt and Syria.
Under these circumstances, the Black Sea exporters have to reduce prices and actively seek new markets for grain.However, we shouldn't disregard that MENA is the strategic exports direction and even a temporary deterioration in competitive position there can have negative consequences in the long and medium term. Active dialogue between exporters from the Black Sea region and importers from MENA is very important on all issues, complicating the successful cooperation in the current season.
We invite you to join the biggest meeting of MENA importers and Black Sea regions exporters (organized by Russian Grain Union and APK-Inform):
International Grain Trading Conference
'Grain quality issues in grain trade'
April 13-15, 2010, Egypt, Sharm El Sheikh
Hyatt Regency 5*
More information including conditions of participation here http://www.agrimarket.info/conferences/gtc2010/.
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