The chief executive of InVivo, a cooperative that produces wheat for export in France and Ukraine, said Wednesday the group is looking at new markets to expand after being beaten by Russian wheat to Algeria.

Thierry Blandinieres, a member of the group that has a range of activities, from grain trading to the distribution and sale wine, said the group opened a Saudi Arabian office in this year, and they saw the sale Ukrainian wheat as a future way to increase their scale in the Middle East.

He said that the Black Sea Zone is essential to balance your business model, if you are planning to ship to China and the Middle East.

Between Ukrainian wheat and French grain, there is the opportunity to export all year at a competitive rate.

InVivo, building on its presence in the malt industry in Ukraine through its subsidiary Soufflet, is studying ways to develop grain trade as part of rebuilding the agricultural sector of the country once the war is over.

In the last two years, Russia has overtaken France in terms of the number one wheat supplier for Algeria. European traders believe that Moscow is using its position as the world's largest wheat exporter as a way to increase its influence in developing countries.

The Russian President Vladimir Putin presented a grain exchange proposal for BRICS nations on Wednesday, and last week the Grain Exporters Union of Russia said that only Russian exporters could sell directly to sovereign purchasers.

Blandinieres stated that "Putin is steering a parallel market versus the global market." "We must adapt and find new outlets for export."

(source: Reuters)