France’s main grain port of Rouen adjusts to impacts of war in Ukraine
France’s primary grain export port is 100 kilometres away from the open sea – close to farmers, who have seen fluctuations in demand for wheat and other grains since Russia’s invasion of Ukraine in 2022. Russia’s recent pullout of the Black Sea grain deal, right at the start of France’s summer harvest season, could once more shake operations up.
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The port of Rouen stretches west from the city centre and its famous cathedral, along 15 kilometres of the Seine River that spills out into the English Channel some 100 kilometres away.
Ships travel six hours upstream, then six hours back once they have picked up or dropped off their cargo.
Boats have been docking in Rouen for centuries, but beyond the history, there is a logistical reason to keep a port so far inland.
“When you are inland it's easier to bring the goods to the port. There are fewer kilometres to travel and it’s cheaper to bring the goods up to Rouen because it's closer to the fields,” explains Emmanuel Gaboriot, the head of agribuisness development for Haropa, the authority that runs the Rouen port as well as ports in Le Havre and Paris.
“Grain exporters, when they choose to settle in a port, they choose the closest port to the fields,” he adds, pointing to the rich farmland that surrounds the city in northern France.
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A third of the activity at the Rouen port is grain exports, and the grain – mostly wheat and barley – arrives by train, small boats and mainly, on lorries.
The port’s four grain operators are in charge of sorting and weighing the grain, and loading it onto the ships.
A major part of grain exporting involves stocking the goods. Tall grain silos dot both sides of the Seine at terminals that can store a total of nearly a million tonnes of grain, shipping out up to 110,000 tonnes a day.
Different grains for different buyers
At Simarex terminal, about 10 kilometres downstream from downtown Rouen, four concrete dome silos and 14 concrete cylinders loom grey and imposing, 50 metres high.
Lorry drivers get their cargo tested at the entrance, and are directed to different parts of the site, depending on what they have.
Different buyers want different products – human-grade wheat or animal feed, and with varying protein or humidity levels.
Cédric Burg, grain director for the farmer’s collective that owns the Simarex terminal, explains how countries put out calls for tender for a certain quality of grain, and the operators “then sell to them or not, depending on your capacity”.
Algeria, for example, wanted wheat with 11.5 percent protein this past season.
“It turns out that last year we didn’t have the right quality,” says Burg. “So either we sell it anyway, and pay a penalty, or we can’t honour the contract and we have to find a solution.”
War in Ukraine shifts demand
Algeria, like many countries, depends on imported wheat and other grains. France, Europe’s largest wheat producer, has been a traditional supplier for countries in North Africa, West Africa and most recently China.
But Russia’s invasion of Ukraine has shifted demand.
The war impacted the supply of wheat, in particular, coming out of Ukraine and Russia, and many buyers turned to France.
Jordan wanted wheat, says Gaboriot, and India was interested in wheat and barley.
“Technically, nothing changed,” he says. “The logistics are the same.”
But volumes went up. Rouen exported five million tonnes of grain from July to December 2022, 1.5 million more than the same period the year before.
This was because of the war, but also the variations of the product.
“This year was particular because the harvest was very good in the north of France, in quality and quantity,” says Gaboriot. “So that's why the goods came from here and that we had a very good season in the port. We depend 100 percent on the harvest and the demand on the world market.”
The increase in demand meant operators had to start working more – calling in dockworkers to load ships day and night.
“A ship costs a lot per day, so from the moment it gets to the dock you have a fixed amount of time to load it. When there is a lot of traffic, you need to avoid making the ships wait,” says Burg.
“That means you need people who can work overnight, doing overtime. And when there are no ships, there is nothing to do. That requires flexibility, both logistical and operational, here on the ground.”
Wheat as a 'political weapon'
But by the start of 2023, the frenzied activity had slowed.
Russia agreed to a deal in July 2022 – the Black Sea Black grain initiative – to allow some Ukrainian grain to be exported on ships sailing through waters it controls.
And Russia started finding clients for its own wheat, which had a good harvest season, despite international sanctions. Exports of Russian grain and seeds reached a record high this year, according to the US Department of Agriculture.
And they are making deals with new clients.
“The Russians understood that wheat is a political weapon. So they use it as such, in geopolitical issues,” comments Burg, who notes that Algeria started buying from Russia as French wheat became less competitive.
However, Russia’s decision not to renew the Black Sea grain deal could impact grain coming out of Ukraine, another wheat-growing powerhouse that exported nearly 33 million tones of grain since last year. And this could bring buyers back to France once more.
Constant uncertainty
“Nothing is ever surprising in the wheat market because nothing is every permanent,” says Burg. “Major factors such wars or blockades or embargoes obviously play a substantial role in the flows. But every year we have to adjust.”
The Rouen port just ended a good season on 30 June, as farmers in the north of France were less affected by drought conditions impacting farmers on the Atlantic coast.
“Everything is in constant flux and our model requires a lot of flexibility,” says Burg. “We move goods very quickly, and then when we don’t need to do that, or when the silos are full, we stop. We are constantly adjusting.”
Listen to a version of this story in the Spotlight on France podcast, episode 97. Link here.
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