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The Black Sea Initiative turns one this month. Since July 2022, more than 32 million tons of food commodities have been exported from three Ukrainian ports to the Black Sea and supplied 45 countries on three continents.
According to the UN, the partial resumption of Ukrainian maritime exports helped to reverse the rise in global food prices, which reached records shortly before the signing of the Initiative.
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Food price
The Food and Agriculture Organization's (FAO) Food Price Index has recorded a steady monthly decline over the past year, falling more than 23% from its March 2022 peak.
The agreement allowed the World Food Programme, WFP, to transport more than 725 thousand tons of wheat to bring aid to Afghanistan, Ethiopia, Kenya, Somalia, Sudan and Yemen. Ukraine has provided more than half of the supply over the past two years.
In addition to wheat, says “UN News”, shipments of corn and sunflower are the products most exported by the initiative.
In May, Russia confirmed its participation in the agreement for another 60 days. In mid-June, United Nations Secretary-General António Guterres asked the parties to do everything possible to ensure the continuation of the Initiative, to be renewed on July 17.
Continuity of the Initiative
Before the conflict, Ukraine was a leading grain exporter and the world's leading exporter of sunflower oil. The UN believes that production should continue unimpeded, to supply markets and help contain prices.
The agreement allowed for a partial resumption in the food sector and gave Ukrainian farmers some level of predictability in production and harvesting and resumed key shipping routes.
The duration of the Black Sea Grains Initiative was 120 days from July 22, 2022. Thereafter, it was renewed by all parties on November 18 for another 120 days.
In March, the agreement was extended again, but Russia limited it to 60 days, pending review. The last renewal took place in May for another 60 days.
The United Nations encourages the implementation and continuation of the Initiative, for as long as necessary, so that food can be transported out of Ukraine using the Black Sea route safely and economically.
Export volume
Food exports through the Initiative have declined significantly in recent months due to the slower pace of inspections and the exclusion of the Yuzhny/Pivdennyi port.
From a record daily average of 11 inspections in October 2022, daily movement fell to less than five in April, May and June 2023.
Monthly exports peaked at 4.2 million tonnes in October 2022, but were just 1.3 million tonnes in May 2023.
The agreement also provides for exports of fertilizers, including ammonia, essential for agricultural production and food security. The Secretary-General highlighted the importance of increasing the supply of fertilizers and ammonia to support global food security.
However, to date, no fertilizers or ammonia have been exported by the Initiative, which would depend on the resumption of the ammonia pipeline from Togliatti, Russia, to the Ukrainian port of Yuzhny/Pivdennyi. Damage to the pipeline was reported on June 5 and its current status is not known.
Delay in inspections
The United Nations reports that it remains “firmly committed” to supporting the effective implementation of the Initiative and its continuation. However, it is based on consensus, so all parties must agree on the pace of the operation.
Inspections are conducted jointly and all parties clear each vessel for its round trip. The UN team seeks to facilitate and work with all sides to try to address operational challenges.
High-level engagement continues to secure agreement on a package of measures addressing their key concerns in a mutually acceptable manner.
Source: datagro
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