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Shining Light on Farm & Food Policy for 20 Years.
Saturday, April 20, 2024
Leaders in the United Nations, Turkey and Russia are announcing that a deal has been reached to extend the Black Sea Grain Initiative for another 120 days beyond Nov. 19, when the original deal would have expired without a new agreement.
The United Nations, fresh off a scare from Russia’s threat to withdraw from the Black Sea Grain Initiative and 10 days from the extension deadline for the deal, is desperate to show Moscow that it’s serious about improving Russian fertilizer exports.
The inspection of grain ships entering and leaving the Black Sea is set to resume Thursday now that Russia has resumed participation in the Black Sea Grain Initiative, and that is allowing the United Nations to focus on preventing the Nov. 19 expiration of the agreement.
The Russian government says it will continue to allow grain shipments out of the Black Sea. All inspections of grain ships were due to stop on Wednesday because of uncertainty about Russia's plans.
Russia announced on Saturday that it was suspending its involvement in the agreement that has allowed Ukraine to ship grain and other commodities from its Black Sea ports. The UN estimates the Black Sea deal has saved 100 million people globally from extreme poverty.
The deal that opened up grain exports from three ports in Ukraine is widely lauded as a success in bringing down global food prices, but the future of the Black Sea Grain Initiative is being threatened by Russia, and United Nations officials are scrambling to save it.
Some of the top U.S. ag leaders are quietly discussing potential ramifications if China ramps up its aggression toward Taiwan and Russia continues its invasion of Ukraine.
The three Ukrainian ports in Odesa are ramping up grain exports now that they are free to ship, and the U.S. Agency for International Development is funding some of that new activity.
Global prices for food commodities dropped sharply in July, led by declines in vegetable oil and grain markets, but food costs overall remain 13% above the level a year ago.
