Singapore-based Olam Group made the announcement on Friday November 1stthat it received an offer from the Saudi company Salic to purchase the remaining shares in the subsidiary Olam Agri. In 2022, Salic has already acquired 35.43%. shares in Olam Agri for PLN 1.24 billion dollars – says Reuters Agency.
Russia may have a problem. “Saudis take control of grain terminal”
“This is a breakthrough transaction that opens the door for Saudi Arabia to the Russian agricultural market. By taking over Olam Agri, the Saudis take control of the Azov grain terminal and probably Rusmolco, one of the largest milk producers in Russia“- said the Association of Grain Exporters and Producers in a comment, quoted by the agency Interfax.
Ministry of Agriculture Russia alarms that the domestic agricultural sector is struggling with a shortage of tractors and combines. The calculations show that 494.3 thousand are needed to cultivate the land. tractors and 176.5 thousand combines. Meanwhile, as of August 1, 2024, Russian agricultural producers were short of 64.8 thousand. tractors and 34.3 thousand combine harvesters – says the agency Interfaxwhich quotes a government report.
Russia's problems in agriculture. Aging machines
The ministry also indicated that approximately 53 percent tractors, 45 percent combine harvesters and 44 percent forage harvesters have been operating for more than 10 years. “In order to maintain the pace of renewal of the machinery stock and reduce equipment that is in operation for a period longer than 10 years, an annual renewal of 10 percent of the number of available equipment is required,” we read.
After Russia began its invasion of Ukraine, key companies producing agricultural equipment withdrew from the Russian market, including: Deere & Company and New Holland. This caused problems with the availability and quality of machines in Russia.