While ‘solidarity lanes’ helped to increase Ukrainian grain exports, the majority of wheat is stuck in the nearby EU countries barely reaching the third countries that needed it, according to the European Commission. Ukrainian grain barely reaches countries in need via ‘solidarity lanes’, Commission says “What is important is not the proportion of Ukraine in world production in general, but a strong dependence of particular countries on Ukrainian wheat and corn”, explained Martin Banse from the German Thünen-Institut specialised in rural and agricultural research.Īs also pointed out recently by Oleg Nivievskyi, professor at the Kyiv School of Economics, global trade chains were already highly damaged due to the COVID pandemic, making it tougher to substitute Ukraine’s output on the global market. But, as of today, the Ukrainian economy was set on a war footing,” he said during a debate this week.īefore the Russian invasion, Ukraine and Russia accounted for 26% of world wheat exports and 14% of corn exports, with the Middle East and African countries among the key buyers of their grains. “We all understand there will be issues with the new sowing campaign, harvesting, and plant protection products. However, as a result of the full-scale Russian invasion, the market situation has changed, posing an additional threat to food security in the world.įor Ukraine’s agriculture Deputy Minister Denys Bashlyk, complicated logistics and lack of storage are the key challenges for the agricultural sector and will likely influence the upcoming sowing campaign. While food prices on the global stage are reportedly decreasing, food affordability remains an issue due to worrying forecasts for the forthcoming sowing season in Ukraine.Īccording to a recent report from the Food and Agriculture Organisation (FAO) of the United Nations, prices of all cereals represented in their Food Price Index fell in July, led by wheat which declined by as much as 14.5%.įAO identifies two key reasons for this trend: the resumption of exports in the Black Sea after the agreement reached in Istanbul by Russia and Ukraine and the fact that the seasonal harvesting campaign has started.īoth events were hailed positively by the international community as Ukraine was the world’s sixth-biggest wheat exporter in 2021, accounting for 10% of the global wheat market share, according to the UN.
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