World Grain - August 2008 - 60

FEATURE: WORLD FLOUR EXPORTS REVISED UPWARD

IGC at 1.9 million tonnes in grain equivalent, down slightly from 2,024,000
in the prior season and well ahead of
1,314,000 shipped in 2005-06.
Russia and the Ukraine, both also
members of the Commonwealth of Independent States (CIS), were significant
exporters (see related article on page
26). Russia in 2007-08 shipped 550,000
tonnes of wheat flour and the Ukraine
275,000.
The CIS has played an increasingly
important role as both flour exporter and
importer. The group's total flour imports
for 2007-08 were estimated at 2,140,000
tonnes, up slightly from 2,032,000 in
the prior season and compared with
1,522,000 in 2005-06. Limits on wheat
exports by exporters spurred business in
flour, the IGC said. A major share of exports went to countries in the CIS, including Uzbekistan at 900,000 and Tajikistan
at 625,000.

Iraq, which two years ago was the
world's largest flour market, accounted for imports of 600,000 tonnes in
2007-08, against 857,000 in 2006-07 and
1,484,000 in 2005-06. The Council said
Iraq's flour imports were being cut back
as domestic mills increased grind of imported wheat.
In fourth place as a flour exporter, behind Kazakhstan, Argentina and the E.U.,
was Turkey, which not long ago was the
world's leading flour exporter. Turkey's
exports in 2007-08 were estimated at 1
million tonnes in grain equivalent, little
changed from 1,034,000 in 2006-07 but
well below 2,250,000 in 2005-06.
Turkey's main market in recent years
had been Iraq, but these sales were being replaced by alternative destinations
like Indonesia and Libya, to which
shipments have increased sharply. The
IGC said that Turkey's flour business
with different destinations would ac-

count for 60% of exports, against 30%
previously.
Even with government brakes on
exports, China's shipments of flour in
2007-08 climbed 32%, reaching 850,000
tonnes, compared with 645,000 in the
preceding year and 487,000 in 2005-06.
Measures taken by the Chinese government to discourage exports included a
25% tax on flour exports.
The Council said China has become a
strong competitor of Australia, causing
the latter's outgo to shrink to 275,000
tonnes, the smallest in five years.
U.S. flour exports rose in 2007-08 to
500,000 tonnes in wheat equivalent,
against 416,000 in 2006-07. The gain reflected increased shipments to a number
of destinations, the IGC said, mainly citWG
ing Canada and Israel.
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