The leaders of the Norman agricultural cooperative group Natup (7,000 farmers, 1,800 employees) will long remember the day of February 24, 2022. And not just because it marks the outbreak of war in Ukraine. Russia’s invasion of one of the world’s first granaries immediately hits the agricultural commodity market where Natup sells the grain its partners harvest.
That day, the price of cereals, already high due to Chinese demand, literally skyrocketed. In the space of twelve hours, the price of a ton of wheat rose by 60 euros to an unprecedented level of 340 euros. That of a ton of rapeseed suddenly jumped from 170 euros to 1,070 euros. ” Something crazy! “Summed up Natup CEO Patrick Apps that we still feel amazed.
« On the 24th we open the day with around thirty million margin calls. We close with one hundred million. Even if they trust us, I can assure you that our bankers have leaked. »
An all-time high
Ten months later, the same bankers can breathe in front of the glittering balance sheet presented by the cooperative. Spurred by rising grain prices, its 2021/2022 income statement (closed in June and made public this week) shows historic levels.
Turnover is close to one and a half billion euros, up 25%, and EBITDA is close to 60 million. A record. Enough to build up reserves for the next storms that Patrick Apps anticipates.
« Price volatility has never been higher, remember. Today the price of a ton of wheat can still fluctuate by plus or minus 70 euros in 72 hours. »
At issue are geopolitical maneuvers and the unpredictability of deliveries from the Black Sea.
Call for air on French wheat
Consequence: Rarely has the demand for French cereals been so high. Although low in protein due to the summer drought, grain harvested in France sold like hot cakes.
As proof, Simarex, the armed wing of Natup for the export of cereals, has never loaded as many ships from its silos in the port of Rouen as in the last six months (35 against 20 in the same period last year). ” It is true that we have experienced an unprecedented spike in activity. This forced us to juggle the availability of crews who sometimes had to work nights “, reports Cédric Burg, director of the cereal division.
Will there be wheat this summer?
« The silos have emptied like never before confirms Patrick Apps. In fact, between July and December, the cooperative loaded around 700,000 tons of wheat and barley, almost three-quarters of the volume it normally ships in twelve months. Destination Egypt, Portugal, Morocco, Algeria and Mauritania in particular.
« Some countries that had turned to the Black Sea have returned » notes Jean-Charles Deschamps who has just left the presidency of Natup.
This influx of orders is not without causing some uncertainty about the start of next year. ” Our supply, and that of French wheat in general, will be tighter, and there is no guarantee that it will be compensated by Russia, given the current geopolitical uncertainties. “, deciphers Cédric Jurg.
The issue particularly concerns China, whose demand for cereals, which had reached record levels in 2020, could rise again.
Big maneuvers
Obviously, a sign that says a lot, the American multinational Bunge, giant in the trade of agricultural raw materials, has just announced that it has purchased 49% of the shares of the BZ group of Rouen, specialized in the collection and import-export of cereals – the Beuzelin family retains the majority.
« This partnership will strengthen our global wheat and barley network and enable us to supply our customers with a broad portfolio of the most important origins. “comments Christos Dimopoulos, agribusiness co-president of Bunge in a press release.
Among the projects announced by the two partners: the expansion of the export terminal.
