Since its signing in July 2022, the Black Sea Grain Initiative has made significant strides in facilitating the export of food commodities from three Ukrainian Black Sea ports to 45 countries across three continents.
In nearly a year, over 32 million tonnes of food commodities have been exported, helping to alleviate global food security concerns and contributing to the reversal of spiking food prices.
Reversing Spiking Food Prices and Ensuring Food Accessibility
Before the agreement, global food prices had reached record highs. However, with the partial resumption of Ukrainian sea exports enabled by the Initiative, vital food commodities have been unblocked, resulting in a steady decline in the UN Food and Agriculture Organization (FAO) Food Price Index.
Over the past year, the index has dropped by more than 23 percent from its peak in March 2022, providing relief to consumers worldwide.
Supporting Humanitarian Efforts and Reconnecting Global Supply Chains
The Black Sea Grain Initiative has not only benefited global markets but has also had a significant impact on humanitarian efforts.
The World Food Programme (WFP) has been able to transport over 725,000 tonnes of wheat to countries in need, such as Afghanistan, Ethiopia, Kenya, Somalia, Sudan, and Yemen.
This critical support has been made possible by the Initiative, with Ukraine supplying more than half of WFP’s wheat grain in 2022 and 2023.
Addressing Food Affordability and Inflation
While global food commodity prices have generally fallen, factors such as exchange rates can still influence food affordability and domestic food inflation. The Initiative has played a crucial role in reconnecting foodstuffs from Ukraine to global supply chains, contributing to lower prices on world markets.
The FAO Food Price Index and Cereal Price Index have both experienced declines, thanks in part to increased global supplies facilitated by the Initiative.
The Continued Need for the Black Sea Initiative
The Black Sea Initiative must continue to ensure the uninterrupted flow of foodstuffs from Ukraine to supply markets and help contain prices.
Disruptions in food supplies have far-reaching consequences, particularly for the most vulnerable populations, impacting areas such as health, education, and social cohesion.
The Initiative has not only allowed the partial resumption of vital food supplies but has also provided Ukrainian farmers with a level of predictability, fostering a revival of key shipping lanes.
The Dual Nature of the Black Sea Initiative
The Black Sea Initiative primarily aims to facilitate exports from Ukrainian seaports, serving as a commercial endeavor. However, the exported crops can contribute to addressing food insecurity in various countries, regardless of their income levels.
The Initiative has a direct humanitarian impact through the World Food Programme, which procures a significant portion of its global wheat grain from Ukraine. Commercial exports also help stabilize global markets and mitigate food price inflation.
The Future of the Black Sea Initiative
The Black Sea Initiative, initially set for 120 days starting in July 2022, has undergone renewals and extensions.
The agreement is currently set for renewal on 17 July, and the UN advocates for its continuation for as long as necessary to ensure the safe and cost-effective transportation of food out of Ukraine via the Black Sea route.
Challenges and Declining Exports
In recent months, food exports through the Initiative have experienced a sharp decline due to slower inspections and the exclusion of the port of Yuzhny/Pivdennyi. While daily inspections have decreased, the UN continues to monitor cargo and inspection volumes to assess the situation and address any challenges that arise.
Fertilizer Exports and Ammonia Pipeline
Fertilizer exports, including ammonia, are critical for agricultural production and food security. However, no ammonia has been exported under the Initiative due to damage to the pipeline from Togliatti in Russia to the port of Yuzhny/Pivdennyi.
The resumption of ammonia exports depends on the restoration of the pipeline, which remains uncertain.
Implementation and Consensus
The Initiative is implemented through the Joint Coordination Centre (JCC), which ensures the safe passage of commercial vessels and conducts inspections at three Ukrainian ports.
While exports from Ukrainian ports undergo inspections, the Initiative does not address exports from Russian ports.
Implementation is based on consensus among all parties involved, and the UN continues its engagement to address operational challenges and secure agreements to support the effective continuation of the Initiative.
Ensuring Safe Passage and Transparent Operations
The JCC’s responsibility is to facilitate the movement of commercial vessels carrying grain, foodstuffs, and fertilizers, including ammonia, in and out of Ukrainian ports.
The JCC conducts inspections to ensure cargo and crew comply with regulations, reporting on shipments and movements facilitated under the Initiative. The transparency of operations is crucial to maintain the safety and efficiency of the Initiative.
Sources: THX News & United Nations.
