BRICS Deals a Major Blow to Grain Exporters in the West

Russia plans to establish a grain exchange for the BRICS countries, which will have implications for the global agricultural market, according to a report by the South China Morning Post. This step will enhance Russia's position as a major grain supplier worldwide and increase food security for the BRICS nations, which include Russia, China, Brazil, South Africa, India, Saudi Arabia, the UAE, Egypt, Iran, and Ethiopia. Indicating the significance of BRICS countries in the global grain market, the group accounted for about 42% of global grain production last year, approximately 1.2 million tons, and represents 40% of global consumption. The report's authors asserted that the establishment of the exchange will impact the West, as trading grain contracts within the BRICS framework will enhance the geographical and economic influence of Russia and its allies in the group, potentially leading to shifts in global power. The report predicted that grain and fertilizer exporters will face increasing competition from BRICS countries, while traditional grain exporters like the United States, Canada, and Australia will struggle to maintain their market share.