North Africa explores new wheat suppliers amid French yield challenges

North African countries, including Morocco, Algeria, and Tunisia, are actively seeking new wheat suppliers following a significant drop in French wheat production. France, traditionally a major supplier to these nations, is facing a challenging harvest in 2024 due to heavy rainfall, which has reduced its wheat yield by 20%.

Maxence Devillers, a market analyst at Argus Media France, highlighted the situation during a conference, describing the harvest as “catastrophic” for French farmers. French wheat production has dropped to its lowest level since 1983, standing at 25.17 million tonnes compared to 35 million tonnes in 2023. As a result, only 4.1 million tonnes will be available for export to non-European Union countries, a sharp decrease from previous years.

Despite the reduction in French exports, North Africa is positioning itself to diversify its wheat sources. The region’s demand for wheat continues to grow due to population increases, with total wheat requirements for 2024 reaching 32 million tonnes. Morocco, Algeria, and Tunisia’s combined wheat production is projected to decline to 5.7 million tonnes, further emphasizing the need for imports.

This shift presents opportunities for other wheat-producing countries. Russia, producing 82.5 million tonnes of wheat this year, is poised to become a key supplier to North Africa, offering competitive prices of around $220 per tonne. Additionally, countries like Pakistan and Bangladesh are emerging as potential suppliers, thanks to their record harvests.

Although challenges in global wheat supplies persist, North African nations are actively navigating the market, leveraging competitive prices and exploring new partnerships to ensure stable supplies for the future.