Russian grain interferes with French influence in Algeria, by Valeria Verbinina for VZGLYAD. 03.06.2024.
"Russia has removed France from its throne." With these words, foreign experts comment on an unprecedented event for North Africa: a sharp rise in Russian wheat supplies to Algeria, a market that was previously inaccessible to Russia. How did Russian exporters manage to squeeze out traditional French suppliers in Algeria?
France has again lost its former colony of Algeria - this time not in terms of territory and resources, but in terms of the grain market, which is now occupied by Russia. The tone in which European resources devoted to foreign trade and analysis of African markets reported this is no less remarkable than the very fact of the loss of a promising market.
“Grain: Russia has dethroned France and established itself as Algeria’s largest supplier,” is the headline on the website of the analytical publication Econostrum.
“In Algeria, Russia has become the main supplier of wheat in the first six months of the 2023-2024 season... surpassing the figure of the European Union, which is used to being the main supplier of North African countries,” admits the EU Economic and Financial Council (Ecofin), an advisory body of the European Union.
Ecofin analysts do not directly indicate which state Russia so cruelly offended, but there is no secret here. This is France, which once owned Algeria and fiercely fought for control over it. Ultimately forced to leave, France, however, managed to rebuild relations at a new level and become one of the main trading partners of its former colony, including in such an important sector as food supplies. But - only until recently. Now this status (at least as far as grains are concerned) is being taken away from it by Russia.
And one of the reasons for what is happening, oddly enough, is the actions of the French officials themselves, who made changes to grain specifications and doubled the permitted content of grain impurities - from 0.5 to 1%, which did not arouse enthusiasm among importing countries.
Adding fuel to the fire was the decision of France's National Sanitary Safety Agency to ban the widely used insecticide phosphine. It is not just used in grain processing - the authorities of North African countries (Algeria, Morocco, Tunisia, Egypt) require such processing. Otherwise, a ship loaded with grain may not be accepted at all.
Perhaps France’s seemingly strong position as one of the world’s largest grain exporters played a cruel joke until recently: “Every year France exports 11.5 million tons of grain, which brings it 3.8 billion euros. Taking advantage of the decline in exports from Ukraine and Russia as a result of hostilities, France is now the fourth largest grain exporter in the world,” wrote Express. And this situation was less than a year ago.
French officials were confident that there were no threats to their grain exports. However, life shows that achieving a certain position in a competitive market for a short time is one thing, but maintaining it is quite another.
As a result, the French government eventually lifted the ban on the use of phosphine, but time was lost. Grain is a critically important product, and attempts to change the rules on the fly (worsening specifications, banning a basic insecticide) could not be regarded by importers as anything other than a tool of pressure, especially in light of the difficult relations between the French and Algerian authorities.
Thus, Algerian expert Hicham Haddoum does not hide the fact that “economic preferences overlap with political factors,” and Algeria fears that
“France will use grain supplies as a pressure factor,” while friendly relations with Russia exclude this point.
The statistics speak for themselves. In October 2021, France exported more than 650 thousand tons of soft wheat to Algeria. A year later, this figure was already 1.05 million tons. However, at the end of October 2023, French grain exports to Algeria collapsed, amounting to only 157 thousand tons.
Nevertheless, Russia managed to take the place of French exporters not only because of the mistakes of the French. There are many grain suppliers in the world, and great efforts have to be made to increase supplies. A year ago, representatives of the Russian Grain Union (RGU) reported that Russia was ready to provide up to 40% of Algeria’s demand for milling wheat, and in the 2022-2023 agricultural year, the African country was among the leaders in the purchase of Russian wheat.
“Algeria literally broke into the top five largest importers of Russian wheat, purchasing 2.1 million tons of it compared to 28 thousand tons in the last agricultural year,” noted Eduard Zernin, Chairman of the Board of the Union of Grain Exporters.
Igor Pavensky, head of foreign market analysis at Rusagrotrans, says that Algeria has increased its exports of Russian wheat to 1.6 million tons in seven months of the 2023-2024 season. The supply potential for the agricultural year is 3 million tons, while the capacity of the Algerian market is 8 million tons. “In addition to wheat,” Pavensky noted , “shipments of barley have begun, the export of which has already reached 237 thousand tons this season. Barley imports into Algeria are generally low - 700-800 thousand tons per year - but Russia became the first in this market too.”
And here is what the Malian portal Maliactu writes , for example: “The decision (to expand the supply of Russian grain) was made in order to diversify sources of supply and guarantee the country’s food security. Russian grain is not only cheaper than French, but it is also of good quality... The loss of the Algerian market is a sensitive blow for France... This situation will most likely affect French agriculture and have a negative impact on the French economy. The fact that Russia has become Algeria's main grain supplier reflects the changing nature of trade relations between the countries. It is possible that this change will have important geopolitical and economic consequences for the region.”
However, that's not all. Part of the Algerian market is the export of durum wheat (the Latin term durum is also used), a segment traditionally dominated by Canada. Currently, Russia has a ban on the export of durum varieties, but, according to Pavensky , in the future Algeria “may also begin to purchase durum from Russia, the prices of which are significantly lower than durum supplied from Canada or the USA.”
In other words, Russian grain has very good prospects in Algeria. And according to the Federal Center “Agroexport”, in the future, exports of Russian agricultural products to this country may exceed $1.5 billion.
https://vz.ru/economy/2024/3/6/1254334.html