News
07.09.2009
Russia gaining wheat market share with discounts
The growing influence of Russia on the international wheat market, is costing Australian growers export contracts.
Wheat produced by Russia and the Ukraine is being sold at discounted prices in Egypt.
Senior wheat merchant Chris Kochanski (co-HAN-ski) from the Emerald Group, says that's forcing wheat from the U.S. to be marketed in Southeast Asia.
This region is a strong market for Australia.
He says the tough competition is contributing to a drop in prices.
"While their quality suffers considerably compared to Australia and US wheats, there are discerning buyers that will take price over quality," he says.
"When they do that Russia is taking sales from the United States."
ABC Rural News (Australia)
