Russia’s exit from the global grain deal will also affect Serbia

Russia’s withdrawal from the grain deal will affect the whole world, including Serbia, according to EURACTIV agro-economic analyst Žarko Galetin.

The grain deal, brokered by the UN and Turkey last July, was supposed to ease the global food crisis by allowing safe exports of Ukrainian grain blocked when Russia invaded Ukraine. The deal is key because Ukraine is one of the main producers of grains and oilseeds, with a war on its territory pushing global food prices to record-high levels.

“The three most important Ukrainian ports, Odesa, Southern and Black Sea, are the most important sea routes for the export of grain and oilseeds. Given that before the war, Ukraine exported as much as 80% of grain and oilseeds through the Black Sea ports, primarily those that were the subject of a dispute, and then because of the war, it could no longer. This created a big problem,” Galetin told EURACTIV.

According to him, Ukraine again has large quantities of grain and oilseeds that it will not be able to market anywhere, so they are looking for an alternative way to get rid of the goods, along the Danube into central Europe- an important export destination for Serbia.

“If that happens, Constanta will be filled with goods to such an extent that Serbia will have nowhere to market its wheat and corn, so it will then be a problem for Serbia as well. This can have a negative effect, especially if we consider that Serbia is a regional power when it comes to the production of wheat and corn”.

Galetin fears that Serbia will lose a significant collection point, meaning there will be nowhere to export goods, and Serbia will have to turn to countries in Africa or neighbouring ones like Italy.

“Nevertheless, by far the most profitable market is the market in the Black Sea basin, primarily the port of Constanta”, said Galetin.

“That’s the curse of the food market. Each participant in that chain has his own reason, he lives his life for himself, and he doesn’t care if the private producer will fail because he has his own profit”, he also said, saying this is all happening due to an unregulated market.

(Jelena Jevtić/EURACTIV.rs)