Resumption of the Black Sea Grains Initiative is critical — FAO

The resumption of the Initiative for the safe transportation of agricultural products from Black Sea ports is critical to overcoming the global food crisis. This opinion was expressed by the chief economist of the Food and Agriculture Organization of the United Nations (FAO), Maximo Torero, in an interview with the Ukrinform agency.

“Resumption the Black Sea Grain Initiative will help lower international prices and improve access to agricultural products for a number of low- and lower-middle-income countries. Many of these countries are already in a difficult macroeconomic situation, facing high levels of debt, and rising import costs and economic instability significantly impair their ability to support their populations,” Torero said.

According to him, countries such as Kenya or Bangladesh, which currently have serious problems with food shortages, have already received support from the grain initiative in the form of a sufficient supply of wheat.

Torero also noted that resuming the work of the grain initiative will prevent a sharp drop in agricultural production in Ukraine, given the important role of our country in the supply of oilseeds and grains to the world market.

The suspension of the Black Sea Grain Initiative, in addition to the war, creates a challenge for domestic producers due to the high logistical costs of exporting via alternative routes.

The Black Sea Grain Agreement was concluded in July 2022. For this purpose, two documents were signed: with the participation of the UN, Turkey and Ukraine, and separately — the UN, Turkey and Russia. The agreement was extended several times.

On July 17, 2023, Russia announced its withdrawal from the grain agreement and the withdrawal of navigation safety guarantees in the northwestern waters of the Black Sea.

According to the UN, during almost a year of the “grain initiative”, 1,004 ships were sent from Ukrainian ports to the Black Sea, transporting 32.9 million tons of agricultural products, including 16.9 million tons of corn, to the countries of Africa, Asia, and Europe. wheat — 8.9 million tons, sunflower oil — 1.7 million tons.

Tags: Black Sea Grain Initiative, grain, prices, Grains, oilseeds, agricultural products, transportation, world market, Black Sea ports, food crisis, Ukraine, resumption, export