Ukraine is a global granary. Before communism, Ukraine was the granary of the world; since the privatization of agricultural land in 2000, it has become so again. Its grain production has skyrocketed, and Ukraine is now focusing on modern grains—corn, wheat, soy, canola, and sunflower oil.
There has been a tight global grain market. In recent years, the global grain market has tightened fast because of production problems in many parts of the world, which are largely connected with climate change. The two big positive exceptions have been Russia and Ukraine. As a result of a tightening global grain market, global prices have risen greatly. By and large, global wheat prices have doubled since early 2021. The Euronext Paris milling price of wheat has risen from about 200 euros per ton in early 2021 to 400 euros a ton at present.
Ukrainian grain is stuck with no where to go. Out of Ukraine’s total grain production of some eighty-six million tons in 2021, about twenty-eight million tons are stuck in Ukrainian ports because of the Russian naval blockade. Ukraine has limited storage available—and, after some time in storage, much of the grain perishes. Moreover, new sowing and other work require financing, and the Ukrainian farmers need to be able to sell their grain in order to acquire financing for the next year’s harvest.
Russia has been accused of the destruction and plunder of Ukrainian farming facilities. The Kremlin has by no means ignored the global food crisis. To the contrary, it has decided to aggravate and exploit it. Ample Ukrainian sources report that the Russian military has intentionally bombed and burnt Ukrainian grain elevators, fertilizer stores, farming areas, and infrastructure.
So, how can the Russian blockade of Ukraine’s Black Sea Ports be ended?