After the renewal of the Black Sea grain deal for 120 days in November 2022, the safe corridor for the easier grain export from Ukraine to different industries will run out on 18 March 2023.
In ongoing negotiations, Russia has accepted an extension for 60 days while Ukraine advocates a 4 – months extension.
According to Ukrainian Deputy Prime Minister Oleksandr Kubrakov, Russia’s demand “contradicts the document signed by Turkey and the United Nations.” The TASS Russian News Agency stated that the deal will be automatically prolongated on Saturday if no one raises a plea.
António Guterres, the UN Secretary-General, assured that the UN “remains fully committed” to the agreement and “will do everything possible to preserve the integrity of the Black Sea Grain Initiative and ensure its continuity.”
As grains are essential for pet food recipes, producers always search for assured supplies discovering other, costlier markets in November 2022 when the situationwas rather poor.
According to the UK Pet Food and the Pet Food Industry Association of Southern Africa (PFI), pet food producers are watching for this time’s outcome of negotiations.
As to the UK’s Agriculture and Horticulture Development Board, the pending outcome is “likely continue to weigh on prices”.
The agreement has permitted the export of 24 million short tons of grain plus a safe pass of over 1,600 ships through the Black Sea pursuant to the United Nations Office for the Coordination of Humanitarian Affairs (OCHA). In January and February, the amount of 6.5 million short tons could be brought across the Black Sea.
Corn and wheat accounted for 77% of the exports followed by sunflower meal and oil with 11% and barley with 4.3%.
Joe Glauber, a senior research fellow at the International Food Policy Research Institute (IFPRI), said to GlobalPETS, the agreement has faciliated monthly wheat exports of 875,000 short tons and maize exports of 1.7 million tons.
He continued that Ukraine has “benefited significantly” exporting 3 million tons of grain a month as well as “significant quantities” of oilseeds and oilseed products.
As to the UN, 5 million tons were exported by China which represents the greatest part followed by by Spain (4.2 million) and Turkey (2.7 million).
Read the full article here – globaletindustry.com