Demetra, one of the largest grain traders in Russia, has supplied 60,000 tonnes of wheat to Algeria. This was the first major supply from Russia to Algeria since 2016. It was also to this destination for Demetra, controlled by Russia’s second largest bank VTB.
The traders said that two vessels were sent from Russia’s Black Sea port of Taman to two ports in Algeria in September, and the cargo has already been accepted by the buyer. Algeria was one of the few major wheat importers to which Moscow had no access until October last year, when Algeria relaxed its terms regarding bug damage. That made it possible to offer wheat from the Black Sea with higher protein.
“Algeria traditionally imports grain from France, Germany, Latvia, Lithuania and Argentina and has high quality requirements. Diversifying our supply markets is part of our growth strategy,” Roman Kron, head of Demetra Trading, said in the statement.
Cereal grain trade narrative
Demetra Trading is part of a holding with the same name, in which VTB consolidated stakes in several Russian Black Sea grain export terminals and Russia’s largest grain railcar owner Rustranscom. Demetra Trading is Russia’s third largest wheat exporter.
In 2020, wheat production for Algeria was 3,900 thousand tonnes. Though Algeria wheat production fluctuated substantially in recent years, it tended to increase through 1971 – 2020 period ending at 3,900 thousand tonnes in 2020.
But Algeria is eager to change this cereal grain trade narrative, especially by reducing its wheat imports through ramping up of domestic production backed with new investor-friendly policies meant to attract local and foreign investors.
