Russia is setting ambitious goals for growing its agricultural exports, aiming for a 50% increase by the year 2030. Already the world's largest wheat exporter, the nation is diversifying its shipping routes, especially through its Baltic ports, which have typically been reserved for crude oil and petroleum products. This shift is largely due to capacity limitations at its primary grain shipping hubs in the Black Sea, which dominate food export logistics. According to vessel tracking data from LSEG, the first sunflower oil shipment was loaded last month onto the tanker Lanikai, carrying 46,317 metric tons, destined for India. Reports indicate another shipment of sunflower oil is expected to follow by the end of March.
Industry sources, who spoke on the condition of anonymity due to the sensitive nature of the information, shared insights indicating Rusagro has leased two warehouses at the terminal – one for sunflower oil and the other for palm oil imports. Long-term plans reportedly include the goal of exporting sunflower oil from this terminal. President Vladimir Putin is intent on enhancing agricultural exports as part of a broader strategy to position Russia alongside agricultural powers such as Brazil, China, and the United States.
Besides being the leading wheat exporter, Russia has also ascended to the top position for exports of corn, barley, and peas. Despite this growth, projections suggest internal demand, along with shipping capacity constraints, could limit the potential for expansion. The Russian government aims to increase shipping capabilities across various regions, but current data reveals Black Sea ports continue to dominate grain exports, accounting for 90% of maritime grain exports, which reached 62.4 million metric tons for the 2023/2024 season.
The agricultural narrative is not just limited to Russia. The Spanish province of Huelva has reported its olive oil exports reached €32 million in 2024, marking a 10.4% increase compared to the previous year. Despite this growth, Huelva remains one of the smallest olive oil exporting provinces, second only to Almería. Andalucía as a whole has seen extraordinary growth, with olive oil exports surpassing €4.5 billion for the first time, representing a 39% increase year-on-year. These figures, compiled by Andalucía TRADE, indicate the region's dominance, accounting for 70% of Spain's total olive oil exports—three out of every four euros spent on Spanish olive oil globally.
Andalucía reinforces its position globally as it accounts for a positive balance of €3.35 billion, vastly outpacing its import levels. Notably, 64% of the olive oil sold internationally from Andalucía is classified as extra virgin, reflecting the sector’s focus on producing high-quality products. The export sector has expanded significantly, with olive oil exporters increasing by 5% to 521 companies, of which 98% contribute to the regular export trade.
All eight provinces within Andalucía reported double-digit growth during the year, all contributing to the record-breaking results. Leading these exports is Sevilla, earning €2.285 billion, followed by Córdoba and Málaga, with €896 million and €663 million respectively. Jaén saw the most significant growth at 69%, boosting sales to €337 million, as it continued contributing to the overall success of the olive oil sector.
Looking globally, Andalucía’s olive oil sales span 132 countries, with substantial growth recorded across nearly all major markets. The United States stands out, matching Italy's standing as the primary international destination for Andalucía's olive oil, generating €860 million (18.8% of the total) and achieving growth of 50%. China also made notable advances, with updates showing olive oil exports nearly doubling, surging by 97% to €110 million.
Looking to future prospects, Andalucía TRADE has scheduled initiatives to bolster the international presence of Andalusian olive oil. These include direct missions to strategic markets and masterclasses educating culinary students and importers about the benefits and uniqueness of Andalusian olive oil. Special events are planned for China and France, with activity targeting key opportunities to consolidate the province's agricultural branding.
Meanwhile, significant changes are also occurring within the sugar industry of Paraguay. According to recent findings by the Union of Industrial Paraguay (UIP) along with CAAP, sugarcane cultivation has shown sustained growth since the 19th century, with figures rising from 6,188 hectares in 1863 to 90,335 hectares by 2022. Sugar production surged to 7.2 million tons, with 42% processed as sugar, 25.7% as alcohol, and the remainder used for animal feed.
Although historical growth has ebbed and flowed, projections for 2023 show a resurgence, with sugar production reaching 170,886 tons, contributing 0.6% of the total GDP. The industry has moved toward organic sugar production, with exports comprising 33% of the total, predominantly heading toward the United States and various European nations. Notably, 67% of sugar exports are directed to U.S. markets, positioning Paraguay as not only a producer but now as a key player within the international sugar scene.
Finally, the dairy sector in Argentina is seeing fluctuated results but hopeful outlooks. Despite experiencing a 6.5% drop according to the Agriculture Ministry for 2024, forecasts for recovery project upward growth of 5.7%. The dairy market mainly caters to the internal demand, with export markets contributing to increased earnings. Cow's milk, powdered milk, and cheese exports stood at 382,664 tons, valued at US$1.41 billion, which is up by 8% by volume compared to 2023.
Brazil continues to be Argentina's largest dairy export market, accounting for 44% of exports, followed by Algeria and Chile. Given these figures and the continuous increase of worldwide dairy demand, Argentina is positioned to meet growing needs.
Overall, the global agricultural export market exhibits resilience and adaptive growth, with nations like Russia, Spain, Paraguay, and Argentina leveraging their unique agricultural outputs amid shifting global demands and market dynamics.