The agricultural sector of Ukraine is in a critical situation due to the war with the Russian Federation. The key problem is the realization of products, especially exports through sea ports. The export of Ukrainian grain through the Black Sea ports was resumed on July 22, 2022 as part of the Grain Initiative for 120 days. Currently the agreement should be extended. 

On October 20, representatives of the associations Ukrainian Agri Council, Ukrainian Agribusiness Club and Ukrainian Grain Association signed a joint appeal to UN Secretary-General Antonio Guterres, President of Turkey Recep Tayyip Erdogan, President of Ukraine Volodymyr Zelensky and leaders of African, Asian and European countries and other countries with a request to do everything possible to continue the action of the Initiative on the safe transportation of grain from Ukrainian ports in order to further ensure global food security.

This was announced by agricultural associations during the joint press conference "Grain corridor: why is it necessary for Ukraine and the world?" on the "Ukrinform" platform on October 21.

The grain initiative has so far proven its effectiveness both in terms of the Ukrainian economy and in terms of world food security.

"As part of the grain corridor, 360 ships with almost 8 million tons of agricultural products have already been shipped from Ukrainian seaports to Asia, Africa and Europe. Currently, the grain sea corridor provides 60% of all grain and food exports from Ukraine. In addition, the majority of agricultural products that were sent to Africa are food wheat, while more feed grain was sent to Europe. I am sure that the world will unite diplomatically, the grain corridor agreement will be extended " Roman Slastion, the general director of UKAB, emphasized.

The director of UKAB noted the positive impact of the implementation of the Grain Initiative on the stabilization of food prices in the world. According to him, the FAO food price index dropped to 136 points in September and almost reached the value before the start of the Russia’s full-scale invasion in Ukraine.

The implementation of the Grain Initiative has a positive effect on the capacity of Ukrainian farmers for further production.

"The beginning of the grain agreement became a signal for farmers that it is possible to sow winter agricultural crops. The agricultural sector works in extremely difficult conditions. In both temporarily occupied and recently liberated territories, as well as in relatively safe territories, there is only one problem - the trade. If the agreement is terminated, then the spring sowing campaign is in question, it will be impractical to sow. The agricultural sector is the locomotive of the economy, and if it stops, the country will lose a lot, because even before the war, agricultural products accounted for 17% of GDP. I hope that common sense will win and the agreement will be extended," said the chair of the UAC Andrii Dykun.

One of the factors to continue the Grain Initiative is Ukraine's export potential of grain and oilseeds, which, according to UKAB estimates, is 48-50 million tons. Without the functioning of the corridor, the world will return to a sharp rise in prices and food shortages.

"Ukraine can export only up to 3 million tons per month by alternative, non-sea routes, but the cost of such transportation reaches $200 per ton, which at current sales prices is unprofitable for farmers. There is no other way, it is necessary to extend the grain agreement, as well as add new conditions to it. Today ships are stuck in Istanbul and due to problems with the inspection’s work, some have been standing for 20 days. Therefore, we suggest canceling the inspection of ships loaded from Ukrainian ports or inspecting them randomly. I believe that the grain agreement should be signed immediately for a year, so that both farmers and grain traders can plan their activities, - emphasized Mykola Gorbachov, president of UGA.

According to him, today about 60% of the new harvest is exported through the grain corridor, so last year's stocks are significant. The Food and Agricultural Organization of the United Nations (FAO) in Ukraine helps with grain storage.

"FAO is making a lot of efforts to continue the Grain Initiative. A few days ago, high-ranking UN officials held talks in Moscow, FAO hopes to extend the Istanbul Agreement. Today, FAO is doing everything possible to help Ukrainian farmers with grain collection. Together with the Ministry of Agriculture, we provide storage of up to 6 million tons of grain, for this we have purchased 30,000 polymer sleeves," said Mykhailo Malkov, adviser on political issues of FAO in Ukraine.

Agrarian associations also initiated the addition to the Grain Initiative of the Mykolaiv seaport and Olvia seaport. They expanded the initiative by including the possibility of importing mineral fertilizers to Ukrainian ports in order to ensure the production of agricultural crops in Ukraine in 2023.