Three grain trading giants are leaving the Russian market

Trzej giganci handlu zbożem opuszczają rynek rosyjski

Such data was published in its columns by the German service Agrarheute, which reported that these three companies had already informed the Russian Ministry of Agriculture in March about the cessation of exports of Russian grain. And they were to use this time to specify the transfer of subsidiaries operating in Russia to new owners. As they announced, so they did.

Companies have changed their names

– Viterra's Russian subsidiary has changed its name from Viterra Rus to MZK Export. It will continue its operations in Russia as an independent exporter. The ministry has not yet provided any information on Cargill and Dreyfus' plans, Agrarheute reported.

Interestingly, according to data from the Russian Grain Union, Viterra Rus exported a total of 3.7 million tons of grain in the 2022/23 marketing year. In turn, in the Cargill subsidiary, this volume was 2.3 million tons, and Louis Dreyfus Vostok, a subsidiary of Louis Dreyfus, exported 1.2 million tons.

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Grain exports from Russia

According to the Tridge portal, in the 2022/2023 season, these companies exported a total of over 13% of Russian grain (with a volume of 55 million tonnes), with Viterra Rus leading the subsidiaries and maintaining its independence.

In the ranking of Russian exporters, the Viterra subsidiary took fourth place, Cargill sixth and Louis Dreyfus eleventh.

– While their departure may slightly affect competition among grain buyers, it is not expected to significantly affect the supply of Russian grain to international markets. However, their departure may reduce competition among sellers of agricultural products, especially in regions where these companies offered farmers favorable terms – the website reads.