The United Nations applauds the "success" of the recent agreement between Kiev and Moscow to unblock grain exports across the Black Sea. However, to avoid a global food crisis, the UN is now also calling for lower food and fertilizer prices.
The deal between Kiev and Moscow has made it possible to lower food prices, the United Nations acknowledges. But now a UN subsection says Russian fertilizer prices must come down to avoid a food crisis.
Cnuced, the United Nations Organization for Trade and Development, recalled that excessive fertilizer prices are a major obstacle to the normalization of the food market. Synthetic fertilizer prices have tripled in the past year and a half due to supply disruptions from Russia, the world's largest exporter, and rising gas prices, which are essential for its production.
On July 22, 2022, two agreements were signed between Kiev and Moscow under the auspices of the UN. One aims to resume Ukrainian grain exports, the other Russian food and fertilizer exports. That deal expires at the end of November.
The UN hopes it will be renewed, because it is an important addition to tackle the food crisis in the world. Five million tons have now been shipped. This has undoubtedly had an effect on the grain markets. The FAO food price index fell for the fifth consecutive month in August 2022, its lowest level in seven months.
A meeting of fertilizer producers will be held in Paris ahead of the G20 summit to be held in Indonesia in November to step up production.