Exploring Trends in MENA Grain Markets

post from 7 December 2023

The interview with Ahmad Atassi, a trader at BAGS Grain Handles, specializing in MENA countries, delves into the intricate dynamics of wheat consumption in the Middle East and North Africa (MENA) region. Covering aspects such as the impact of population growth, preferences in wheat types, and challenges posed by the Russian-Ukrainian war, Atassi provides insights into the complexities faced by traders and governments in the MENA grain market. The discussion also touches on potential shifts in procurement responsibilities from governmental to private sectors and the ongoing struggle to address unforeseen challenges arising from the geopolitical landscape.

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In this interview with Ahmad Atassi, a trader at BAGS Grain Handles, specializing in MENA countries, several key points are discussed:

MENA Wheat Consumption:

MENA countries import 24% of the world’s total wheat, with a significant share coming from Russia and Ukraine.

Population growth in countries like Saudi Arabia and Egypt is driving an increasing demand for wheat.

Types of Wheat Imported:

Different countries have specific preferences for wheat based on their needs and bread types.

The Russian-Ukrainian war has impacted wheat imports, creating challenges for maintaining sufficient stocks.

Population Growth and Wheat Substitution:

Despite significant population growth, substituting wheat is challenging due to the cultural importance of bread.

Wheat is considered a national security commodity, and there are no plans for substitution.

Coarse Grains Usage:

Barley, maize, and corn are mainly used for feed, especially in sheep meat production.

Challenges include the impact of frozen meat imports on barley quantities.

Governmental Procurement Organizations:

Governments in MENA countries play a major role in grain importation, driven by national security concerns.

Some countries are considering transitioning this role to the private sector for efficiency.

Impact of Russian-Ukrainian War on Grain Trade:

The war has significantly impacted grain trade, with the JCC corridor causing logistical nightmares for traders.

Waiting times for inspection and compliance issues have led to increased costs and delays.

Conclusion:

The ongoing war has created a complex and challenging environment for the grain trade in the MENA region.

The cultural significance of wheat and challenges associated with substitution make it unlikely for MENA countries to shift away from wheat consumption.

Governments play a crucial role in grain importation, but some are considering transitioning this responsibility to the private sector for efficiency.

The ongoing war continues to pose significant challenges for traders, importers, and receivers, affecting the entire supply chain.