EBA calls on the UN and the Republic of Turkey to contribute to increasing the number of inspections of vessels within the grain initiative

20/ 01/ 2023

During 2022, despite the full-scale war in the country, Ukraine was among the leading food suppliers to the global market. Back in 2021 Ukraine exported agricultural products to 191 countries. According to the Ministry of Agrarian Policy and Food of Ukraine, Ukraines contribution to the world food market in 2021 was equivalent to feeding about four hundred million people beside the population of Ukraine. Therefore, Ukrainian agriculture export is a priority not only for Ukraine, but also for the whole world in order to ensure global food security. According to the Ukrainian Ministry of Agropolicy, in 2022, Ukraine managed to export more than 50 million tons of grain, oil crops and their processing products. As of now, more than 650 ships with Ukrainian agricultural products on board have already been sent through the grain corridor to the countries of Asia, Africa and Europe. Such export results became possible due to the concerted efforts of farmers, traders, international partners and the operation of the grain corridor. In this regard the importance of support from the UN and the Republic of Turkey is worth admitting. Business trusts and surely supports the grain initiative and is ready to increase transshipment volumes, however, unfortunately, there are logistical bottlenecks that block Ukrainian exports of agricultural products. In particular, according to the information of the EBA Grain and Oilseed Committee members, in January 2023, the number of inspections of ships arriving to load Ukrainian agricultural products sharply decreased to 2-3 per day. This means that vessel lay-ups will increase and ship owners and grain exporters will incur serious costs for vessel delays. Therefore, according to the grain business community of the European Business Association, in order to avoid a large crowding of vessels, as well as to effectively overcome the food crisis, especially in those countries where people suffer from hunger, it is extremely important not to allow delays in the inspections of such vessels. According to experts estimates, at least 25 inspections of vessels should be carried out per day for normal operation. At the same time, it must be mentioned that millions of tons of agricultural products remain blocked in Ukraine. Therefore countries that depend on Ukrainian agricultural products cannot receive grain in the required quantity precisely because of the war that the Russian Federation waged on the territory of Ukraine. Accordingly, it is likely that this situation could lead to an increase in food prices and inflation around the world. Considering the abovementioned, the agribusiness of the European Business Association appeals to UN Secretary General Antonio Guterres and Ambassador Extraordinary and Plenipotentiary of the Republic of Turkey to Ukraine Yağmur Ahmet Güldere to facilitate the increase in the number of inspections of ships with Ukrainian agricultural products, as well as to facilitate the further continuation of the grain initiative. This is critical to continuing to ensure global food security!

According to the Ukrainian Ministry of Agropolicy, in 2022, Ukraine managed to export more than 50 million tons of grain, oil crops and their processing products. As of now, more than 650 ships with Ukrainian agricultural products on board have already been sent through the “grain corridor” to the countries of Asia, Africa and Europe. Such export results became possible due to the concerted efforts of farmers, traders, international partners and the operation of the “grain corridor”. In this regard the importance of support from the UN and the Republic of Turkey is worth admitting.

Business trusts and surely supports the grain initiative and is ready to increase transshipment volumes, however, unfortunately, there are logistical bottlenecks that block Ukrainian exports of agricultural products. In particular, according to the information of the EBA Grain and Oilseed Committee members, in January 2023, the number of inspections of ships arriving to load Ukrainian agricultural products sharply decreased to 2-3 per day. This means that vessel lay-ups will increase and ship owners and grain exporters will incur serious costs for vessel delays.

Therefore, according to the grain business community of the European Business Association, in order to avoid a large crowding of vessels, as well as to effectively overcome the food crisis, especially in those countries where people suffer from hunger, it is extremely important not to allow delays in the inspections of such vessels. According to experts’ estimates, at least 25 inspections of vessels should be carried out per day for normal operation.

At the same time, it must be mentioned that millions of tons of agricultural products remain blocked in Ukraine. Therefore countries that depend on Ukrainian agricultural products cannot receive grain in the required quantity precisely because of the war that the Russian Federation waged on the territory of Ukraine. Accordingly, it is likely that this situation could lead to an increase in food prices and inflation around the world.

Considering the abovementioned, the agribusiness of the European Business Association appeals to UN Secretary General Antonio Guterres and Ambassador Extraordinary and Plenipotentiary of the Republic of Turkey to Ukraine Yağmur Ahmet Güldere to facilitate the increase in the number of inspections of ships with Ukrainian agricultural products, as well as to facilitate the further continuation of the grain initiative. This is critical to continuing to ensure global food security!