According to grain processors, the possibility of exporting Lithuanian grain to some countries is complicated by cheaper Russian grain, although this year three new markets opened up – Mexico, Iraq and Indonesia, and a year and a half ago an agreement was reached with Brazil.
Karolis Šimas, President of the Lithuanian Grain Processors and Traders’ Association and head of Agrokoncerno Grūdai, says that a grain vessel has already been sold to Indonesia – all formalities have recently been agreed with this country.
Buyers chose cheaper Russian grains
“As for Mexico and Brazil, Lithuania was already very close to sales, but buyers chose cheaper Russian grains. However, we are receiving inquiries from these countries, so we are not letting our hands down,” Mr Shim told BNS.
Compared to last season, he said, exporters have had a significant challenge to compete with Russia, and in part with Ukraine.
“Russia, in particular, has closed the markets with cheap grain, so we are left with those countries that, in principle or in solidarity with Ukraine, do not buy Russian wheat or want the high quality that Lithuania can offer, so they agree to pay more for quality,” said K. Šimas.
According to him, at the moment there is also intensive work to participate in egyptian state tenders, adjusting requirements and other details of possible sales, sending samples, establishing contacts with millers. In addition, negotiations are also being held with the US.
“We offer higher quality”
“Although the grain market is alive all year round due to the harvest produced at different times, but due to the high competition, Lithuania’s exports are more intense, it is slower. Therefore, we offer higher quality and look for markets at the other end of the world, because everyone wins – from the farmer, who will know that he will receive the market price for grain, and not the discounted price in the illiquid period, to the state, whose economy has a significant share of the grain sector and is resistant to crises or closing markets,” K. Šimas said.
He also stressed that large markets are very important for Lithuania, as they buy a lot and guarantee constancy.
“As an example, I would like to mention that when the Chinese market opened up, we exported half a million tons in six months. Lithuania’s grain exports range from EUR 4.5 million. up to 5.5 million tons,” K. Shim told BNS.
Agrococern Grains announced last week that it would export wheat to Iraq. According to the company, 50 thousand people will be transported to the port of Um Kasro. t Lithuanian wheat. According to K. Shim, this market has so far been dominated by wheat from the USA, Australia and Canada.