November 20, 2009
Sojitz to export grain to Southeast Asia
Sojitz Corporation is planning grain exports to Southeast Asian markets from Russia starting in 2010, leveraging a strategic partnership with that country''s largest agricultural organization, The Nikkei reported in its Friday morning edition.
Russia is the world''s fourth-largest wheat producer, after China, India and the US, with output reaching 63.7 million tonnes in 2008. Designating wheat a strategic export, it now aims to nearly double its shipments to 35 million tonnes by 2018.
Through a tie-up with the Russian Grain Union, Sojitz plans to sell the wheat at a price 10-20 percent cheaper than that of US wheat in such markets as Singapore, Indonesia and Thailand. Japan and other Asian countries currently depend on wheat imports from the US, Canada and Australia.
Demand for food supplies in parts of Asia is soaring as the region''s population continues to grow. Sojitz'' venture is apparently aimed at helping build a stable grain supply network.
In the future, the Japanese trading company is expected to build an export terminal, complete with silos and grain elevators, in the Russian Far East. It has already begun preliminary discussions with Russian firms.
Sojitz handles 4 million tonnes of wheat a year, making it the top grain trader among Japan''s general trading houses. It plans to raise this to 5 million tonnes in 2012.
