According to the press service of the European Business Association, the blockade of the grain initiative by Russia will have unpredictable consequences for Ukraine’s agricultural sector. In particular, this situation could lead to a 33% reduction in winter crops in Ukraine in 2023, or by 1.5 million ha. This means that wheat and barley production will fall by 6 million tonnes. Such a reduction could lead to price volatility on the world market and exacerbate food security problems.
“In addition, entrepreneurs emphasize that at the current cost of logistics across the Danube, farmers will be forced to sell grain at 40 USD/t below cost. This will not allow farmers to finish planting campaign next year and may lead to a reduction of the total production of grain in Ukraine by 30%, or 15 mln tonnes,” – the EBA believes.
In this regard, the Association underlines the importance of joint efforts to implement the strategy to fully open Ukrainian Black Sea seaports for commercial transport of all types of cargo.
Source: Apkinform