Grain crop consumption in African countries has increased significantly over the past decade. The growth in grain output is still lagging behind demand due to the complex agro-climatic conditions in the region. Approximately 35% of the grain on African markets is imported (grain consumption amounted to about 268.6 million tonnes in the 20182019 season, while imports amounted to roughly 90 million tonnes).
The Russian Federation is a regular trading partner for several African countries (the three leaders in the 20182019 season were: Egypt 6.7 million tonnes, Nigeria 1.35 million tonnes, and Sudan 1.12 million tonnes) and handles roughly 1015% of their grain demand. This figure stood at 15.2% in the 20182019 season.
United Grain Company JSC is the largest trade and logistics operator for agricultural products with state participation in Russia. The company focuses on expanding grain and legume exports and developing infrastructure both on the domestic and foreign markets. Depending on the shipment season, United Grain Company exports up to 700,000 tonnes of grain to African countries, or 5075% of the companys total exports.
As part of its long-term development programme, United Grain Company plans to increase the transhipment capacity of its deep-sea grain terminal in Novorossiysk and also set up an efficient logistics network from the fields to the vessel that is managed as part of a single complex. As a result, large quantities of grain will be delivered through the Azov-Black Sea basin within the timeframe clearly stipulated in contracts.
The company sees great potential for the development of both trade and investment projects with African countries and expects to expand the borders of the Russian-African partnership.