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Business that works in Ukraine appeals to the UN to prolong the Grain Initiative including the Mykolaiv seaport hub

11/ 10/ 2022
  The European Business Association appealed to the United Nations and Embassy of the Republic of Turkey to Ukraine to do everything in power to facilitate the prolongation of the Grain Initiative including the Mykolaiv seaport hub, as well as the increase of the number of inspections of vessels with Ukrainian agricultural commodities.  The text of the Official appeal can be found below. According to the Ministry of Agrarian Policy and Food of Ukraine, Ukraine’s contribution to the world food market in 2021 was equivalent to the nutrition of about four hundred million people, not counting the population of Ukraine. During that year Ukraine was one of the leading suppliers of food to the world market. In 2021 we exported agricultural products to 191 countries. As a result of the 2020/2021 marketing year, Ukraine held leading positions among exporters of sunflower oil, millet, sunflower meal, corn, barley, rapeseeds, and wheat. Exports of Ukrainian agricultural products are a priority not only for Ukraine but, above all, for the whole world, especially to those countries where people suffer from hunger.  From February 24, 2022, martial law has been imposed on the entire territory of Ukraine. The Russian Federations military invasion on Ukraines territory and the introduction of martial law affected all spheres of life and all state, social and economic processes in Ukraine. The economy of our country has suffered significant losses. The export of goods, including grain and oil crops, has been significantly disrupted.  It is worth noting the important support for Ukraine from the United Nations and Turkey on the resumption of Ukrainian grain exports via Black Sea ports under the Grain Initiative for the safe transportation of grain and food products from three Ukrainian ports (hereinafter – Grain Initiative). The unblocking of Ukrainian ports already facilitates the improvement of the humanitarian situation in Africa and Asia, as well as the counteract the food shortage in the world and the reduction of grain prices. As of October 6, 2022, more than 280 ships had already been shipped via “grain corridor” with more than 6 million tons of agricultural commodities on board to countries in Asia, Africa, and Europe. This is a signal from the business that it trusts the Grain Initiative and is ready to increase the volume of cargo handling. Unfortunately, we have been witnessing logistical bottlenecks that block Ukrainian exports of agricultural commodities. In particular, according to the information of the European Business Association Grain & Oilseeds Committee, at the beginning of October, the number of inspections of vessels with Ukrainian agricultural commodities had already decreased to 15 per day. That means that the Black Sea ports of Great Odesa (Odesa, Chornomorsk and Pivdenny) will operate at half of their capacity and the idle time of vessels will increase. Shipowners and grain exporters will incur serious costs for vessel delays. As the EBA Committee experts calculate, it takes 25 days to handle one vessel, including 9 days for Joint Coordination Centre inspection on the way to Ukraine, 3 days sailing to load port, 3 days loading, 2 days sailing back to Bosporus, 9 days for Joint Coordination Centre backwards inspection. As a result, prices for Ukrainian grain will rise. According to the grain business community of the EBA, to avoid large congestion of vessels, it is necessary to carry out at least 25 inspections per day. In addition, there is a concern that having the current delay with Joint Coordination Centre inspections, many vessels may stuck around Bosporus waiting for inspection, which will never happen, if the Grain Initiative is not extended. To effectively overcome the food crisis, above all, for the whole world, especially to those countries where people suffer from hunger, it is also important to expand the geography of the Grain Initiative, namely to include the grain gates of Ukraine - Mykolaiv seaport hub, which in 2021 transhipped approximately a third part of the total volume of grain exports from the ports of Ukraine and in 2021 the volume of cargo processing almost reached 30 million tons. Considering the above, businesses that work in Ukraine with all urgency appeal to the UN and Embassy of the Republic of Turkey to Ukraine, to do everything in power to facilitate the prolongation of the Grain Initiative including the Mykolaiv seaport hub, as well as the increase of the number of inspections of vessels with Ukrainian agricultural commodities.  It is critical in helping Ukraine to fulfil its mission of providing the world with food continuously!

The European Business Association appealed to the United Nations and Embassy of the Republic of Turkey to Ukraine to do everything in power to facilitate the prolongation of the Grain Initiative including the Mykolaiv seaport hub, as well as the increase of the number of inspections of vessels with Ukrainian agricultural commodities. 

The text of the Official appeal can be found below.

According to the Ministry of Agrarian Policy and Food of Ukraine, Ukraine’s contribution to the world food market in 2021 was equivalent to the nutrition of about four hundred million people, not counting the population of Ukraine. During that year Ukraine was one of the leading suppliers of food to the world market. In 2021 we exported agricultural products to 191 countries. As a result of the 2020/2021 marketing year, Ukraine held leading positions among exporters of sunflower oil, millet, sunflower meal, corn, barley, rapeseeds, and wheat. Exports of Ukrainian agricultural products are a priority not only for Ukraine but, above all, for the whole world, especially to those countries where people suffer from hunger. 

From February 24, 2022, martial law has been imposed on the entire territory of Ukraine. The Russian Federation’s military invasion on Ukraine’s territory and the introduction of martial law affected all spheres of life and all state, social and economic processes in Ukraine. The economy of our country has suffered significant losses. The export of goods, including grain and oil crops, has been significantly disrupted. 

It is worth noting the important support for Ukraine from the United Nations and Turkey on the resumption of Ukrainian grain exports via Black Sea ports under the Grain Initiative for the safe transportation of grain and food products from three Ukrainian ports (hereinafter – Grain Initiative). The unblocking of Ukrainian ports already facilitates the improvement of the humanitarian situation in Africa and Asia, as well as the counteract the food shortage in the world and the reduction of grain prices. As of October 6, 2022, more than 280 ships had already been shipped via “grain corridor” with more than 6 million tons of agricultural commodities on board to countries in Asia, Africa, and Europe. This is a signal from the business that it trusts the Grain Initiative and is ready to increase the volume of cargo handling.

Unfortunately, we have been witnessing logistical bottlenecks that block Ukrainian exports of agricultural commodities. In particular, according to the information of the European Business Association Grain & Oilseeds Committee, at the beginning of October, the number of inspections of vessels with Ukrainian agricultural commodities had already decreased to 15 per day. That means that the Black Sea ports of “Great Odesa” (Odesa, Chornomorsk and Pivdenny) will operate at half of their capacity and the idle time of vessels will increase. Shipowners and grain exporters will incur serious costs for vessel delays. As the EBA Committee experts calculate, it takes 25 days to handle one vessel, including 9 days for Joint Coordination Centre inspection on the way to Ukraine, 3 days sailing to load port, 3 days loading, 2 days sailing back to Bosporus, 9 days for Joint Coordination Centre backwards inspection.

As a result, prices for Ukrainian grain will rise. According to the grain business community of the EBA, to avoid large congestion of vessels, it is necessary to carry out at least 25 inspections per day. In addition, there is a concern that having the current delay with Joint Coordination Centre inspections, many vessels may stuck around Bosporus waiting for inspection, which will never happen, if the Grain Initiative is not extended.

To effectively overcome the food crisis, above all, for the whole world, especially to those countries where people suffer from hunger, it is also important to expand the geography of the Grain Initiative, namely to include the “grain gates” of Ukraine – Mykolaiv seaport hub, which in 2021 transhipped approximately a third part of the total volume of grain exports from the ports of Ukraine and in 2021 the volume of cargo processing almost reached 30 million tons.

Considering the above, businesses that work in Ukraine with all urgency appeal to the UN and Embassy of the Republic of Turkey to Ukraine, to do everything in power to facilitate the prolongation of the Grain Initiative including the Mykolaiv seaport hub, as well as the increase of the number of inspections of vessels with Ukrainian agricultural commodities. 

It is critical in helping Ukraine to fulfil its mission of providing the world with food continuously!

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