Russia’s agricultural charm offensive reaches Jordan

23 Jan 2018 | Tom Houghton

Officials in Moscow have turned their attention to Jordan as Russia looks for new markets to offload its record wheat crop and further expand its role as the world’s biggest exporter, a release from the ministry of agriculture said Tuesday.

Minister of Agriculture Alexander Tkachev met with the Jordanian ambassador, Amjad Adail, to discuss avenues for cooperation, including increased cereal and meat exports.

“[Russia] is interested in increasing exports of meat and dairy products, as well as in increasing supplies of wheat and poultry to the Jordanian market,” Tkachev said.

Population growth

Demographic pressure following an influx of refugees from across the region has necessitated a rethink of Jordan’s agricultural imports as its population has mushroomed by 72% over the past decade to 10.2 million, according to World Bank and US government data.

In October, the USDA’s local office in Amman estimated Jordan’s wheat imports for the 2017/18 marketing year will reach 1.1 million mt – almost the entire total of its domestic consumption.

It was also forecast to import 800,000 mt of barley and 600,000 mt of corn.

Russian role

Russia’s average annual wheat sales have totalled just over 300,000 mt over the past three years, with exports on the decline since 2014, according to customs data.

Russia has only exported 30,250 mt of wheat to Jordan since the 2017/18 marketing year started on July 1.

The EU is currently Jordan’s biggest supplier of wheat, with Romanian exports supplying the bulk of a trade totalling over 630,000 mt a year since 2014.

The balance of Jordan’s wheat imports has typically come from Ukraine in recent years, with average volumes of around 115,000 mt seen over the past three years.

Keen to find a home on the international market for its bumper wheat crop, Russia has been actively seeking new outlets for its agricultural production.

Tuesday’s overtures to Jordan follow high level meetings between Russian and Saudi Arabian authorities in December which paved the way for increased cooperation on agricultural trade between the two.

It also comes in the same week as Russian public health authorities have announced progress in its plans to sell wheat to nine Brazilian flour mills.