Black Sea Grain Initiative Set to Expire Sunday

With your Southeast Regional Ag News, I am Haylie Shipp. This is the Ag Information Network.

The Black Sea Grain Initiative set to run out on Sunday.

State Department Spokesman Ned Price…

“The world needs this, the world needs the Black Sea Grain Initiative. We believe it should be extended, we believe it should be expanded. And we believe that because we’ve seen the implications of a world with the Black Sea Grain Initiative, and we’ve seen a world without the Black Sea Grain Initiative.”

The situation after Russia’s invasion of Ukraine…

“World food prices spiked nearly 30 percent, wheat and fertilizer prices spiked nearly 30 percent, in the immediate aftermath of Russia’s full-scale invasion. It wasn’t until the Black Sea Grain Initiative was put into place that these prices started to actually go down.”

A big deal, according to USDA Chief Economist Seth Meyer…

“That is something that contributes to the Ukrainians exporting grain, that moderates global grain prices, whether that grain ends up in a specific country or not, it’s availability in the world market reduces wheat prices, it reduces other commodity prices.”

And State’s Ned Price says, it keeps people from starving…

“Over four million metric tons of wheat have gone to developing countries as a result of the Black Sea Grain Initiative.”

That boils down to eight billion loaves of bread.