Ukraine has almost completely lost its positions in the wheat markets of Asia and Africa due to the reorientation of exports towards the European direction. This shift in trade strategy has led to significant losses for Ukrainian farmers, who previously actively collaborated with countries in Africa and Asia.
This is reported by Finway
Losses in Key African Markets
According to market participants’ estimates, in Egypt, which was one of the main buyers of Ukrainian wheat, up to 70% of the market has been lost. Ukrainian exporters have almost entirely switched to the European market, resulting in the loss not only of profitable selling opportunities but also of trust from local partners.
“We have lost 70% of the Egyptian market. All Ukrainian exporters have reoriented towards Europe. We have lost not only the moment when it was profitable to sell to Egypt but also the trust of the Egyptian buyer,” market participants reported.
In Tunisia, the situation has also changed unfavorably for Ukraine: 75% of imported wheat consists of products from Russia, while the share of French wheat is also significant, and Ukrainian wheat is almost absent. A similar situation is observed in the markets of Sudan and Ethiopia. In several African countries, including Kenya and Nigeria, there is a demand for grains with a high protein content (12.5%), which Ukrainian producers are currently unable to fully meet.
Challenges in Asian Markets and Pressure from Russian Exporters
In the Asian direction, particularly in Bangladesh and Indonesia, Ukrainian traders are also facing difficulties. Russian companies are actively dumping prices, trying to push competitors out of the market and take leading positions.
According to experts, in the near future, Ukrainian exporters will have to adapt to new realities: on one hand, there are restrictions from the European Union, and on the other, there is a need to revise logistics schemes and pricing policies to return to the lost markets of Asia and Africa.