Ukraine and the world are interested in extending the functioning of the “Grain Corridor” in the Black Sea indefinitely or at least for a year. This will ensure a stable supply of Ukrainian grain to the world market, and for Ukrainian farmers it will guarantee the possibility of selling their grain and allocation of resources for growing the next year’s harvest.
The UGA appeals to the UN Secretary General and world leaders to do everything possible to continue the Black Sea Initiative for the safe transportation of grain from Ukrainian ports to further ensure global food security.
The Grain Agreement of July 22, 2022, and the subsequent unblocking of the Ukrainian ports of Chornomorsk, Pivdennyi, and Odesa significantly contributed to the improvement of the humanitarian situation around the world and in Africa and Asia in particular, as well as to reducing food shortages and grain prices. Thus, as of October 27, 2022, 399 vessels with a total volume about 9 mmt of grains and oilseeds, as well as their processed products, have been exported through “Grain Corridor” from Ukraine to Asia, Africa and Europe.
Why it is important to continue the work of the “Grain Corridor”:
Ukrainian grain for the world
It is important to continue the Grain Initiative in the Black Sea to make the “grain corridor” work stably and predictably. This will help to avoid a global food crisis and another growth of grain prices on the world market. After all, suspended “Grain Corridor” will increase food inflation in the world and further deepen the problem of hunger and malnutrition, especially in Africa and Asia. But it will also increase food inflation in developed countries as well. According to UGA’s estimates, if the grain agreement resume, in the current marketing year the volume of Ukrainian grain exports would reach about 50 mmt. In case the “Grain Corridor” is suspended, Ukraine will be able to send abroad a maximum of 35 mmt of grains and oilseeds.
The problem of blocking Ukrainian exports for the world
Food shortages and high prices will again cause political instability in developing countries, especially in Africa and the Middle East. This political instability may escalate into riots and rebellions, as well as cause a new wave of mass migration to Western countries. This is exactly what the aggressor country wants – to destabilize the countries dependent on Ukrainian grain to cause a new wave of mass migration to the West and thus destabilize politically and economically Western countries.
Stability for Ukrainian farmers is important
Ukrainian farmers who suffered losses and destruction from the russian invasion, thanks to the work of the “Grain Corridor” have the opportunity to sell their products at a reasonable price that covers the their costs. In case of termination of the “Grain Corridor” and too expensive alternative logistics, Ukrainian farmers will not be able to cover their costs and will not sow and harvest. As a result, next year the world may face a new challenge due to the lack of Ukrainian grain. Ukrainian crop will decline to the lowest volumes needed just for Ukraine’s own consumption.
Extended period for Grain Corridor
“Grain Corridor” is a certain prospect and confidence for the farmer. But in this case, the term of the agreement should be extended for a year. Then the farmer will sow winter crops and will know that he can sell it, and the trader will be sure that he has the technical ability to export. And the extension of the agreement for several months is a solution in the short term, but a big question arises with the sown areas for the next year.
The UGA appeals to the UN Secretary General and world leaders to find the necessary arguments for the russian aggressor who is terrorising Ukraine and the whole world to resume the Grain Initiative for safe Grain Corridor work for the next year.
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