On the Algerian market, Russian grain is actively displacing French grain

France once again lost its former colony - Algeria, but now not in the sense of territories, but in terms of the grain market. If earlier Algeria bought mainly French wheat, now it has reoriented itself to supplies from the Russian Federation.

According to the results of the first half of the 2023/24 season, the Russian Federation became the main supplier of wheat to Algeria, moving it to the second place of the EU countries.

Experts believe that the reason for this is the changes made by the French authorities to the grain specifications, which increased the permitted content of grain impurities from 0.5% to 1%, which did not please buyers.

In addition, the National Agency for Sanitary Safety of France has banned the popular insecticide phosphine, although the governments of North African countries (Algeria, Morocco, Tunisia and Egypt) require mandatory treatment of grain against pests.

Even a year ago, the Express publication wrote that "France exports 11.5 million tons of grain worth 3.8 billion euros every year, and became the fourth supplier of grain in the world after the reduction of supplies from Ukraine and the Russian Federation as a result of military operations."

However, having gained a short-term advantage in the markets, the country could not withstand the competition. As a result, the authorities canceled the ban on the use of phosphine, but time was lost. Attempts to change the rules "on the fly" were seen by importers as a pressure tool, especially given the difficult relationship between the French and Algerian governments.

Algerian experts confirm that "economic advantages are emphasized by political factors, and France can use grain as an element of pressure, while there is no such risk in relations with the Russian Federation."

If in October 2021, France exported 650 thousand tons of wheat to Algeria, then in October 2022 - 1.05 million tons, but in October 2023 the export decreased to 157 thousand tons.

At the same time, Algeria increased its import of Russian wheat from 28,000 tons in 2021/22 FY to 2.1 million tons in 2022/23 FY, breaking into the TOP-5 main buyers of Russian grain. In 2023/24, Algeria has already purchased 1.6 million tons of wheat from the Russian Federation, and by the end of the season it can import another 3 million tons, since the potential of the Algerian market is 8 million tons.

Among the suppliers of barley, of which Algeria buys 700-800 thousand tons per year, the Russian Federation has also become a leader, having already delivered 237 thousand tons in the current season.

The Malian portal Maliactu reports that "the decision to diversify supply sources was made to ensure food security. Wheat from the Russian Federation is not only cheaper than French wheat, but also has better quality. The loss of the Algerian market would have a negative impact on France's agriculture and economy. The change in trade relations between the countries indicates the beginning of significant geopolitical and economic changes in the region."

Algeria currently buys durum wheat mainly from Canada, as there is a ban on the export of such grain in the Russian Federation. However, after its cancellation, Algeria can intensify the import of durum wheat from the Russian Federation, the prices of which are much lower than those of Canada or the United States.

Therefore, experts believe that in the future, the Russian Federation can increase the supply of its agricultural products to Algeria to $1.5 billion.