The 1st International Grain Trading Summit:
CIS and Arabic countries - from Deals to Partnership

February, 22-26, 2006, Egypt, Sharm El Sheikh about the event   introduction   about the organizers   program   conditions for participation   list of participants   application form


The region of North Africa and Middle East is an important sales market for both Russian and Ukrainian grain. On average within the last five years Russia and Ukraine together have been supplying to this region 7 million tones of grains each year, which is about a half of these countries' total grain exports.

Russia goes ahead of Ukraine in exports of wheat, in the first turn, on account of active supplies to Egypt, while the reverse picture is seen in the exports of barley.

The situation is not so bright with wheat. Considerable amounts of North American, Australian, French and Argentinean wheat continue to get supplied to the region.

But in recent years we have repeatedly heard from companies the largest importing countries, such as Egypt, Algeria, Saudi Arabia and Libya, about their interest in supplies of wheat from Russia and Ukraine.

According to our estimates, potentially the share of CIS (Russia, Ukraine, Kazakhstan) grain within the structure of regional imports might reach 30 percent, should the trade between our regions be encouraged at the largest possible degree.

Contrary to optimistic declarations of our local politicians, a sad fact needs to be stated: despite our great potential to participate in the region's grain trade, both Russian and Ukrainian grain traders at this moment are marked by an unstable competitiveness as compared with the other suppliers of grain to the region, i.e. the US, France and Australia.

There are lots of factors that are and will be encouraging the increase of cooperation between Egypt and other countries of the region and CIS in the area of commodities trading, among which are:

  • The governments is always trying to diversify the sources from which it is securing its grains

  • The increasing role of the private sector importers versus the public sector importation

  • Geographical proximity and lower freight costs

  • The countries has good relations from the past period of the Soviet Union

The idea of arranging international conference for CIS and North Africa and Middle East grain traders was discussed with Russian, Ukrainian, Egyptian and Saudi Arabian companies - all of them sure in urgency of such event where market players form all sides could discuss complications and prospects of cooperation.

The presence not only of traders but shipping, inspection, logistics companies and officials from all countries will help to meet event's targets.