The export potential of Russian agricultural products to Somalia is estimated at $30 million per year
Photo is illustrative in nature. From open sources.
According to the review, in 2021, the Russian Federation exported 36.6 thousand tons of agricultural products to Somalia for $10.8 million, compared to 29.8 thousand tons, respectively, for $6.5 million in 2020, when only wheat was exported. In 2021, its supplies increased by 19.7% in physical terms (up to 35.5 thousand tons), in value terms - by almost 1.6 times (up to $10.1 million). In 2022, its exports decreased to 27 thousand tons.
In addition to wheat, wheat FLOUR, sunflower oil, yeast, soft drinks, water without SUGAR and additives were also supplied to the Somali market in 2021.
Imports of agricultural products from Somalia to the Russian Federation in 2021 amounted to 36.7 tons worth $65.3 thousand. it was represented only by sesame seeds, the supply of which increased by 3.7% in physical terms and by 2.8% in value terms.
The volume of trade in agricultural products between the Russian Federation and Somalia in 2021 increased by 65.7%, to $10.9 million.
Daniya Khotko, HEAD of the sectoral analysis department at Agroexport, whose commentary is given in the review, predicts that, given the moderately positive forecasts for the development of the economy and consumer demand in Somalia for the next 5 years, as well as the characteristics of demand in neighboring African countries, one can expect an increase in their interest in wheat, poultry MEAT, dry dairy products.
"Russia can offer all of the above products at competitive prices, given the cost of logistics and the current presence of Russian agro-industrial products in other countries of East Africa, in particular, in Sudan, Ethiopia, Kenya, Tanzania, and others," Khotko said. "An important factor in successful development EXPORT deliveries from RUSSIA to Somalia should become a reputational factor - the reliability of partners and the timeliness of financial settlements between countries."
In 2021, Somalia's agricultural imports amounted to $2.4 billion (a record high over the past five years), up 7.7% from 2020. The average annual import growth rate for 2017-2021 was 8%.