Agri-Pulse (USA) published an analysis on next steps following Russia’s announcement that it was suspending its involvement in the Black Sea Grain Initiative. The agreement allowed Ukraine to ship grain and other commodities from its Black Sea ports and the United Nations estimates the agreement has saved 100 million people globally from extreme poverty.
International Food Policy Research Institute senior research fellow Joseph Glauber comments on the importance of the agreement and what it had achieved. While the recent shipments were half the previous year’s shipments, the agreement “provided needed grains and oilseeds to a hungry world,” Glauber explains. Some of those exports, indeed, went to the EU and other developed economies, however, “the world benefited from lower prices as a result of the increase in exports. This move [suspending the agreement] also further penalizes Ukraine farmers who will have fewer incentives to plant for next, further extending short global supplies into 2023.”
Republished in Industry Update.