Biden announced the search for an opportunity to export 20 million tons of grain from Ukraine
The US President explained the need to export grain with record food prices in the world. According to him, the return of Ukrainian grain to the world market should help reduce prices. ” alt=” Biden said he was looking for an opportunity to export 20 million tons of grain from Ukraine” />
The United States, together with its allies, is looking for opportunities to return 20 million tons of Ukrainian grain to the world market in order to achieve a reduction in world prices. This was during a speech on measures to combat inflation in the United States, said US President Joe Biden, the broadcast was hosted by the CNBC YouTube channel.
According to him, due to the conflict in Ukraine, world food prices soared to record highs. He explained this by the fact that Russia and Ukraine are the world's largest exporters of grain, including corn.
“Ukraine has 20 million tons of grain in its storage facilities. <…> We are studying ways to return this grain to the world market and thereby achieve price reductions,— he said.
Russia and Ukraine— one of the largest suppliers of grain in the world, follows from the data of the foreign agricultural service of the US Department of Agriculture. In the 2021/22 season, which began in July, Russia accounted for 16% of world wheat exports, Ukraine— 10%.
At the same time, Ukraine is among the leaders in the export of corn in the world, its share is 14% (Russia has 2%). Exports of Russian and Ukrainian suppliers of sunflower oil and meal used to be about 80%.
Against the background of the conflict in Ukraine, world prices for food and fertilizers have increased by an order of magnitude. So, in March, food prices increased by 12.6%, to 159.3 points, which was a record for more than 30 years— since 1990, according to the Food and Agriculture Organization of the United Nations (FAO). This dynamics was the result of a significant rise in prices for vegetable oils (by 23.2% in March versus February) and grain crops (by 17.1%).
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French President Emmanuel Macron warned at the end of March about the risk of an “unprecedented” food crisis due to events in Ukraine. “This will lead to <…> difficult humanitarian situations in a number of countries and, no doubt, to huge political consequences, — he said. The French president expressed confidence that the situation on this issue would become even worse in a year and a half.
Biden then agreed with his French counterpart and said that “food shortages will be real.” He added that the countries— G7 members discussed measures to increase wheat production to reduce food shortages.
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