Greece can be a high-value market for Canadian spring wheat, but increasingly tough grain quality inspectors are making it harder for Greek buyers and pushing them toward closer suppliers.
“They are very skeptical and very critical about (disease and fungus levels in wheat from nonEuropean countries),” says Greek wheat broker Evi Dremousi.
“Every year they are more and more strict – unofficially.”
This heightened scrutiny of Canadian wheat is the result of Canada being considered a third party rather than a local supplier.
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“Things are less complicated with Kazakh, Russian or German wheat,” said Dremousi, who recently attended a Canadian International Grains Institute milling wheat program.
Greece often exports wheat and durum, mostly to Italy, but this year production fell far short so it is importing wheat through brokers such as Dremousi. Greece grows soft wheat, so prairie spring wheat also offers attractive quality characteristics for blending.
Canadian wheat is highly valued for its high protein and quality, she said. Its direct competitors are wheat varieties from Germany and Kazakhstan.
The challenge to Canada, Dremousi said, is not only the tougher standards applied to imports from third party countries, but also the greater convenience that Black Sea exporters offer to Greek buyers.
Greek ports are small, with limited unloading and storage facilities, so buyers like to bring in ships of 3,000 to 5,000 tonnes capacity rather than the 15,000 tonne ships that Canadian shippers favour.
“Greek ports cannot store such huge quantities.”
Dremousi said high prices are flustering European grain buyers, who are having trouble believing world prices could rise so fast.
“They are crying. They didn’t want to believe it. They were very shocked,” she said.
At first buyers backed away from purchasing, but now some are scrambling to secure supplies.
“They bought nothing. Now they understand that each day it’s getting worse and worse.”
Her company has had its worst year of business in a decade because high prices are prompting buyers to back away from the market.
European consumers, who helped cause the crop price surge by subsidizing biofuel production, are beginning to rebel against food price increases. Dremousi said Italy has seen food store boycotts and Greek shoppers notice bread price increases on an almost weekly basis.
“It is getting more and more,” she said. “I think they are not very much in favour of biofuels.”
