Potential for export of agricultural goods from Russia to Somalia estimated at $30 mln/year – Agroexport
MOSCOW. April 18 (Interfax) – The estimated export potential of Russian agricultural products to Somalia is $30 million per year, according to a review prepared by the Agriculture Ministry’s Agroexport Center.
The primary promising products are grains and leguminous crops, sunflower oil, wheat flour, pasta, yeast and others.
According to the review, Russia agricultural exports to Somalia totaled 36,600 tonnes worth $10.8 million in 2021 compared to 29,800 tonnes worth $6.5 million in 2020, when only wheat was exported. In 2021, its supply increased by 19.7% in volume terms (to 35,500 tonnes), and by almost 1.6 times in value terms (to $10.1 million). In 2022, wheat exports fell to 27,000 tonnes.
In addition to wheat, wheat flour, sunflower oil, yeast, soft drinks, and water without sugar and additives were also supplied to the Somali market in 2021.
Imports of agricultural products from Somalia to Russia in 2021 amounted to 36.7 tonnes worth $65,300. Sesame seeds accounted for 100% of this total, with deliveries increasing by 3.7% in volume and by 2.8% in value terms.
The volume of trade in agricultural products between Russia and Somalia in 2021 increased by 65.7%, to $10.9 million.
Given the moderately positive forecasts of economic development and consumer demand in Somalia for the next 5 years, as well as the characteristics of demand in neighboring African countries, their interest in wheat, poultry meat, and dry dairy products can be expected to grow, head of Agroexport’s sectoral analysis department of Agroexport Daniil Khotko was quoted as saying in the review. “Russia can offer all of the above products at competitive prices, given the cost of logistics and the current presence of Russian agricultural products in other East African countries, particularly in Sudan, Ethiopia, Kenya, Tanzania, etc.,” he said. “The reputational factor, i.e. the reliability of partners and the timeliness of financial payments between the countries, should be an important factor for the successful development of exports from Russia to Somalia,” Khotko said.
In 2021, Somalia’s agricultural imports were $2.4 billion (a five-year record), increasing 7.7% compared to 2020. The average annual growth rate of imports for 2017-2021 was 8%.
Source: Interfax
