Wheat: Exports to the EU have reached all-time high
March 28, 2018 at 4:48 PM ,
Starry Night Ltd.
BULGARIA. The aggregate output of harvest 2017-18 reached 5.9 mmt – the highest figure for at least two decades. As a result of the higher quality characteristics of the grains this year, as well as the strong demand by EU countries, exports have been vibrant since the beginning of the marketing season. There is little doubt that by the end of the current marketing season, current shipped volumes abroad will top those of last year, which came close to 4.17 mmt – the highest number in a period of at least twenty years.
Wheat: exports to the EU lead the race
According to local authorities, by the end of last week, shipped volumes to EU markets reached 3,242,914 mt, which on a year-to-year basis stands by close to 40% higher. Locally grown wheat has been always competitive within the markets of the Union, and as a result, the majority of it quickly gets exported abroad. A case in point, by the end of last season, total exports represented a share of 73,62% out of national production, which came to 5.66 mmt. By the beginning of harvest 2018-19, total shipped volumes abroad are expected to represent a similar share. On an annual basis, the country imports small quantities of wheat, as by the end of last week, imports stood at 56,552 mt.
|
Harvest 2017-18 (01.07.2017 - 23.03.2018) units in MT |
|
|
Beginning availability |
179,000 |
|
Aggregate output |
5,900,000 |
|
Imports |
56,552 |
|
Domestic consumption |
1,264,000 |
|
food |
721,000 |
|
feed |
368,000 |
|
seeds |
200,000 |
|
industrial usage |
24,800 |
|
Exports to the world |
3,789,110 |
|
to EU markets |
3,242,914 |
|
to rest of the world |
546,196 |
Source: Bulgarian Ministry of Agriculture
Exports to non-EU markets have recently increased, but if compared on a year-to-year basis, they still lag behind substantially: by that time last year, according to the Ministry of Agriculture, shipped volumes to markets outside the Union reached 1,362,919 mt, which is by close to 60% more than current exports. The reason for the slowing-down of such shipments is the availability of ample supply of wheat within the Black sea basin and the market clout countries such as Russia command on markets outside the EU. The trend is expected to continue its slowed-paced move.
View related articles
