European Union wheat exports are increasingly focused on the western side of Africa after losing out to Russia in key markets in North Africa and the Middle East, traders said on Wednesday .
EU soft wheat shipments so far in 2024/25 are 30% below the previous year’s level, held back by Russia-led competition and a rain-affected crop in France , the main producer in the EU. Nigeria is currently the leading destination, while Algeria, formerly the leading outlet, only comes in fifth position, according to EU data.
“We are moving more westward,” Karolis Simas, president of the Lithuanian Association of Grain Processors and Traders, said of shipments from the Baltic states.
75% of Baltic wheat exports are now focused on Africa, with Nigeria and South Africa replacing the former main destinations of Iran and Saudi Arabia, which have become captive markets for Russia. he said at the Global Grain conference in Geneva.
Poland has observed a similar trend, according to Norbert Sztloc, sales manager for grains and oilseeds at Polish Agro.
The country used to send about half of its exports to Saudi Arabia in giant panamax ships, but its main market is now West Africa, where it uses smaller ships, he said at the conference.
In France, the agricultural office FranceAgriMer revised downwards on Wednesday its forecasts for exports of French soft wheat for 2024/25, down 62% compared to last year, due to the drying up of sales to Algeria.
France and Germany have partly adapted to Algeria’s growing Russian wheat trade by selling more to Morocco.
But Russia has also increased its share of the Moroccan market this season amid a record pace of exports, making Morocco only the EU’s fourth destination so far.
Traders say EU sales could accelerate due to Russia’s moves to cut exports and depleting stocks in Ukraine, another major Black Sea supplier.
Polish exports could accelerate from March as farmers release their stocks, with an additional 2 million tonnes of shipments needed after a slow start to the export season, Mr Sztloc said.
