July 22, 2023, marks the one-year anniversary of the landmark — and often tumultuous — Black Sea Grain Initiative.
The deal that’s allowed for safe passage of Ukrainian grain and Russian ag inputs through the Black Sea has resulted in major wins for the global community, according to an analysis from the United Nations (U.N.), which helped broker the agreement.
More than 32 million metric tons of food commodities have been exported from three Ukrainian Black Sea ports to 45 countries across three continents, U.N. data shows.
“The FAO Food Price Index stood at 140.6 in July 2022, when the Initiative was unveiled,” the U.N. stated, noting that the Food Price Index has declined 11.6% since that time, reaching 122.3 points in June 2023.
“In the same period, the FAO Cereal Price Index has fallen by 14% from 147.3 points to 126.6 points, thanks in part to increased global supplies facilitated by the Initiative.”
Nearly 80% of the grain cargo that’s moved during the Black Sea Grain Initiative has come in the form of corn and wheat, with much of it going to developing nations that rely on Ukrainian ag exports to feed their people.
The Initiative has allowed the World Food Programme (WFP) to transport more than 725,000 metric tons of wheat to help people in need in Afghanistan, Ethiopia, Kenya, Somalia, Sudan, and Yemen. Ukraine supplied more than half of WFP’s wheat grain in 2022, according to the U.N.
Despite the positives, the deal could be nixed as soon as July 17, when the most recent extension Russia agreed to expires. In May, Russia signed on to a 60-day extension, with a promise that if more of their fertilizer wasn’t shipped to the global market, or new sanctions from the West were put in place, they would not continue.
According to a recent Associated Press report, things aren’t looking good.
“Unfortunately, at the moment there are no particular grounds for extending the deal,” Kremlin spokesman Dmitry Peskov said on July 7. But Russia said there’s “still time for the West to fulfill those parts of the deal that concern Russia.”
Russia has complained about not having increased fertilizer and ammonia exports under the agreement — which the U.N. acknowledges has not happened since the deal was first signed. However, the U.N. said that exports of ammonia would depend on the resumption of an ammonia pipeline in Russia that runs to Ukraine, which has reportedly been damaged.
It’s worth noting that blustering about leaving the deal is nothing new for Russia, which has routinely threatened to pull out, only before agreeing to progressively shorter extensions at the last minute.
Source: michiganfarmnews.com
Photo Credit: gettyimages-ziviani
Categories: Michigan, Crops