Three other ships carrying thousands of tons of corn left Ukrainian ports, officials said Friday, in the latest sign that a negotiated grain export deal caught up since Russia’s invasion of Ukraine just about six months ago is coming to fruition. it lies forward to bring food to the countries that need it most.
Ships bound for Ireland, the UNITED Kingdom and Turkey are following the first shipment of grain crossing the Black Sea since the beginning of the war. Nations with Russia and Ukraine.
The Black Sea region is known as the breadbasket of the world, with Ukraine and Russia being the world’s leading suppliers of wheat, maize, barley and sunflower oil that millions of poor people in Africa, the Middle East and parts of Asia count on for their livelihoods. survival.
While shipments have raised hopes of easing a global food crisis, much of the grain Ukraine seeks to export is used for animal feed, not human consumption, experts say. The first ships to depart are part of more than a dozen bulk carriers and shipping Ships loaded with grain are still stranded in ports since Russia’s invasion in late February. And shipments are not expected to have a significant impact on the global price of corn, wheat and soybeans for several reasons.
For starters, the deal’s exports are starting slowly and cautiously due to the risk of explosive mines floating off Ukraine’s Black Sea coast.
And while Ukraine is the top exporter of wheat to emerging countries, there are other countries, such as the United States and Canada, with production levels much higher than world wheat prices. And they face the risk of drought.
“Ukraine accounts for about 10 percent of the foreign wheat industry, but in terms of production, it’s not even 5 percent,” said David Laborde, an expert on agriculture and industry at the International Food Policy Research Institute in Washington.
The 3 ships departed on Friday with more than 58,000 tons of corn, but that’s still only a fraction of the 20 million tons of grain that Ukraine says is trapped in the country’s silos and ports and wants to be sent to make room for this year’s. harvest.
About 6 million tons of trapped grains are wheat, but some of it is intended for human consumption, Laborde said.
Ukraine is expected to produce between 30% and 40% less cereals over the next 12 months due to the war; other estimates put the figure at 70%.
Grain costs peaked after Russia’s invasion, and since then some have returned to pre-war levels, still higher than before the COVID-19 pandemic. Corn costs are 70 percent higher than at the end of February 2020, said Jonathan Haines, principal analyst at knowledge and analytics firm Gro Intelligence. He said wheat costs were about 60% higher than in February 2020.
One of the reasons prices remain high is the effect of drought on crops in North America, China and other regions, as well as the superior value of fertilizers needed for agriculture.
“When fertilizer costs are high, farmers can use less fertilizer. And when they use less fertilizer, they will produce less. And if they produce less, they will remain insufficient,” Laborde said.
The 3 ships that left Ukraine on Friday give hope that exports will increase to the next countries, where many face an increased risk of food shortages and hunger.
“The movement of 3 more ships overnight is a very positive sign and will continue to build confidence that we are moving in the right direction,” Haines said. . “
The Turkish-flagged Polarnet with 12,000 tons of corn departed from the port of Chornomorsk for Karasu, Turkey. The Panamanian-flagged Navi Star left the port of Odessa for Ireland with 33,000 tons of corn. The Maltese-flagged Rojen left Chornomorsk for the UK with more than 13,000 tonnes of maize, the UN said.
He added that the Joint Coordination Center, headed by Ukrainian, Russian, Turkish and UN officials overseeing the agreement signed in Istanbul last month, legalized the 3 ships and inspected a ship bound for Ukraine. The Fulmar S, which flew the flag of Barbados, inspected in Istanbul and is heading to the port of Chornomorsk.
The checks are meant to ensure that outgoing cargo ships only bring grain, fertilizer or food and not other goods and that incoming ships do not bring weapons. Sea.
After Turkey, which has relations with Russia and Ukraine, helped negotiate the food deal two weeks ago, President Recep Tayyip Erdogan scheduled a meeting with Russian President Vladimir Putin later Friday in Sochi, Russia. The assembly follows another face-to-face assembly. the two leaders had in Iran 3 weeks ago.