The UN-brokered Black Sea Grain Initiative (grain deal) has led to the export of 32 tons of Ukrainian grain, which led to a 23% slash in global food prices, the British Intelligence reported in its daily update.
“It’s highly likely that the successful export of Ukrainian grain during the Black Sea Grain Initiative (BSGI) has helped reduce global prices and food insecurity.
During the initiative more than 32 million tonnes of food reached the global market and the Food Price Index fell 23% from its peak in March 2022.
Developing nations have especially benefited from lower prices as well as from direct imports of grain from Ukraine.
Russia’s withdrawal from the BSGI has reduced Ukraine’s exports, a clear effort to degrade the Ukrainian economy and its ability to support the war effort.
The agricultural sector made up 40% of Ukraine’s exports pre-war and remains vital; food exports earned $28bn in 2021.
Ukraine has found success using alternative methods like river, rail and road to export its grain; however, it is unlikely that this will match the capacity of the Black Sea export routes.”
