The Brass Tacks of the Black Sea Wheat Challenge
The Black Sea Region (BSR) is in the global wheat network’s spotlight and for good reason. Since the early 2000s, Black Sea-origin wheat has grown—from comprising less than 10% to making up 25% of global grain markets—and has been a significant contributor to the world being awash with wheat over recent years. For Australia, the volume and price of Black Sea-origin wheat in Australia’s traditional and major markets in South-East Asia (SEA) have been a cause for concern.
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The fundamentals support the sustained presence of BSR wheat in global markets and in SEA—this is not a short-term phenomenon
The fundamentals support the sustained presence of BSR wheat in global markets and in SEA—this is not a short-term phenomenon Notwithstanding expected year-to-year seasonal variability, the underlying capacity to maintain and increase supply is substantial, especially in light of growing investment in the region. Moreover, it is important to recognise that BSR wheat supply does not just originate from Russia and Ukraine, or even Kazakhstan, but also Danube Region countries—the supply base is broad.
Australian suppliers to SEA can rise above the challenge in the medium to long term by:
• Consideration of more than just price.
• Undertaking continuous improvement.
• Focus on value growth, not market share.
• Embracing opportunities for change.