Workers pack Lebanese flat breads at a bakery in Beirut. Bloomberg
Workers pack Lebanese flat breads at a bakery in Beirut. Bloomberg
Workers pack Lebanese flat breads at a bakery in Beirut. Bloomberg
Workers pack Lebanese flat breads at a bakery in Beirut. Bloomberg

Black Sea grain deal: What does its failure mean for Middle East wheat importers?


  • English
  • Arabic

After Russia said on Monday it would end the Black Sea Grain Initiative – a deal to provide safe export routes for about 20 per cent of the world’s grain – governments have been trying to assess the impact on world hunger.

Ukraine, sometimes called the breadbasket of Europe, is a major producer of sunflower oil, wheat and maize, but when Russia invaded in February 2022, turning much of the agriculturally rich east of the country into a warzone, wheat prices were hit hardest amid a general surge in global food prices.

Wheat futures jumped 60 per cent within a week, but by July the UN, Turkey, Russia and Ukraine had signed a deal to allow food to be exported safely through the Russian navy-controlled Black Sea from three Ukrainian ports, Chornomorsk, Odesa and Yuzhnyi.

Odesa seaport in Ukraine. AP
Odesa seaport in Ukraine. AP

By August, prices had stabilised but not before delivering a harsh blow to the finances of some of the poorest countries in the world.

Wheat prices have remained high as countries compete to secure new sources of the grain.

For Gulf nations – and major oil exporters such as Iraq, which have seen elevated oil prices for the past two years – the impact of the wheat price rises are manageable.

But for net energy importers including Syria, Tunisia and Jordan, coming after the economic shock of Covid-19, the economic stress was acute.

It was a similar tale for Egypt, which used to import 25 per cent of its wheat from Ukraine, and Lebanon, which used to import 80 per cent from the conflict-hit country.

In Tunisia, the war's impact on livelihoods has been very visible. In a study conducted by UN Habitat and released in May, Tunisia was said to import 93 per cent of its soft wheat and 40 per cent of its durum wheat in the period between 2018 and 2021. Most of these imports were from Russia or Ukraine at the war's onset.

Experts say that grain, fertilisers and energy costs all increased following the war, leading to an explosion of subsidy allocations that the government provides to support the local market and prevent it from falling apart.

This subsidy increase in turn worsened a budget deficit and the shrinking of public funds for other vital sectors such as health, education and investment.

Stabilising food prices

Last year, two things contributed to the stabilisation of prices: the Black Sea deal, which allowed for around 30 million tonnes of food to be moved from Ukraine’s ports, and a surge in production in wheat-growing areas as producers took advantage of high prices.

Those positive factors are now in doubt, not just because of the deal ending, but because record breaking temperatures will soon have an impact on harvests. Australia, where wheat exports surged last year, will see a slight decline this year.

A wheat crop near Moree, Australia. Reuters
A wheat crop near Moree, Australia. Reuters

So the picture is mixed when it comes to the struggles of import dependent countries.

Lebanon, a country suffering from a prolonged economic crisis that has rendered the vast majority of its population impoverished and left nearly 50 per cent food insecure, continues to rely on Ukraine’s wheat exports.

More than 500 days into the war, more than half of Lebanon’s wheat continues to be imported from the eastern European country.

Experts and rights organisations warn that the failure to renew the Black Sea Grain Initiative would further deepen food insecurity in the troubled country and have devastating consequences on a population already struggling to receive even basic goods and services.

“Lebanon is now the country with the highest food price inflation in the world, at a staggering 352 per cent,” Jennifer Moorehead, Save the Children’s country director in Lebanon, warned in a report on Monday.

“Millions of people in Lebanon have been classified as experiencing crisis or emergency levels of food consumption gaps.”

Lebanon has suffered from chronic shortages of wheat and flour since its economic crisis began in 2019.

The interruption in wheat supply caused by the war in Ukraine exacerbated bread shortages and drove prices up at a time when soaring inflation, paired with a plunge in the value of the local currency, has debilitated the purchasing power of Lebanon’s citizens.

Unable to store wheat long term due to the destruction of its main wheat silos in the Beirut port explosion on August 4, 2020, the small state has become reliant on regular wheat shipments, financed by the World Bank, to keep it afloat.

The situation remains fragile in Egypt, the world’s largest wheat importer, annually buying around 10 million tonnes on world markets.

On the eve of the outbreak of the Russia-Ukraine war, Egypt procured the vast majority of its wheat imports from the two warring countries. Egypt’s Supply Minister Ali Moselhy said in May that the nation’s reserves of wheat were sufficient for about six months.

A large segment of Egypt’s imported and locally grown wheat is used to make bread, a main staple for most Egyptians. At least 70 million of its 105 million people are entitled to heavily subsidised bread available on state-issued food cards, set aside for those with limited incomes.

An Egyptian man carries bread in the Abdeen district of Cairo. EPA
An Egyptian man carries bread in the Abdeen district of Cairo. EPA

A loaf of the local flat variety sells to card holders for 0.05 pounds. A slightly larger and better loaf sells for 10 times as much on the free market. The availability of bread in Egypt is commonly used as a reference point for how well a government is performing, given the political sensitivity linked to it.

With a rapidly growing population and a foreign currency crunch, Egypt has expanded the growing of local wheat and adopted legislation obliging farmers to sell to the government a percentage of their harvest.

But with water shortages looming – as in much of the region – and a lingering dispute with neighbouring Ethiopia over the massive Nile dam that Addis Ababa is intent on building, there are question marks over how sustainable this is.

Iraq's short-term relief

While global markets adjust, one outlier is Iraq, which is unlikely to be affected by the collapse of the grain deal as the country has sufficient strategic reserves of wheat from its procurement of local grain from farmers this season.

After years of drought, Iraq saw a good harvest of wheat in its 2022-2023 season, thanks to heavy and unexpected rains.

According to the chairman of the Iraqi Grain Board Haider Nouri, the season was the “most successful one” with 5.194 million tonnes of wheat purchased.

“We have reached self-sufficiency that exceeds all expectations,” Mr Nouri said in a statement on Monday.

In previous years and amid severe drought, Iraq cut the amount of irrigated farmland and imposed wheat quotas on farmers, leading to a significantly higher import bill.

The country went through severe drought the past two seasons due to lack or rains and dwindling flows of the two main rivers, the Tigris and Euphrates, mainly as a result of upstream dams in Turkey and Iran, as well as poor water management.

Additional reporting by Ghaya Ben Mbarek, Hamza Hendawi and Sinan Mahmoud.

The five pillars of Islam

1. Fasting

2. Prayer

3. Hajj

4. Shahada

5. Zakat 

Brolliology: A History of the Umbrella in Life and Literature
By Marion Rankine
Melville House

The biog

Born: near Sialkot, Pakistan, 1981

Profession: Driver

Family: wife, son (11), daughter (8)

Favourite drink: chai karak

Favourite place in Dubai: The neighbourhood of Khawaneej. “When I see the old houses over there, near the date palms, I can be reminded of my old times. If I don’t go down I cannot recall my old times.”

UAE currency: the story behind the money in your pockets
UAE currency: the story behind the money in your pockets
The burning issue

The internal combustion engine is facing a watershed moment – major manufacturer Volvo is to stop producing petroleum-powered vehicles by 2021 and countries in Europe, including the UK, have vowed to ban their sale before 2040. The National takes a look at the story of one of the most successful technologies of the last 100 years and how it has impacted life in the UAE.

Part three: an affection for classic cars lives on

Read part two: how climate change drove the race for an alternative 

Read part one: how cars came to the UAE

LAST-16 FIXTURES

Sunday, January 20
3pm: Jordan v Vietnam at Al Maktoum Stadium, Dubai
6pm: Thailand v China at Hazza bin Zayed Stadium, Al Ain
9pm: Iran v Oman at Mohamed bin Zayed Stadium, Abu Dhabi

Monday, January 21
3pm: Japan v Saudi Arabia at Sharjah Stadium
6pm: Australia v Uzbekistan at Khalifa bin Zayed Stadium, Al Ain
9pm: UAE v Kyrgyzstan at Zayed Sports City Stadium, Abu Dhabi

Tuesday, January 22
5pm: South Korea v Bahrain at Rashid Stadium, Dubai
8pm: Qatar v Iraq at Al Nahyan Stadium, Abu Dhabi

Dhadak 2

Director: Shazia Iqbal

Starring: Siddhant Chaturvedi, Triptii Dimri 

Rating: 1/5

The%20Genius%20of%20Their%20Age
%3Cp%3EAuthor%3A%20S%20Frederick%20Starr%3Cbr%3EPublisher%3A%20Oxford%20University%20Press%3Cbr%3EPages%3A%20290%3Cbr%3EAvailable%3A%20January%2024%3C%2Fp%3E%0A
UAE squad

Esha Oza (captain), Al Maseera Jahangir, Emily Thomas, Heena Hotchandani, Indhuja Nandakumar, Katie Thompson, Lavanya Keny, Mehak Thakur, Michelle Botha, Rinitha Rajith, Samaira Dharnidharka, Siya Gokhale, Sashikala Silva, Suraksha Kotte, Theertha Satish (wicketkeeper) Udeni Kuruppuarachchige, Vaishnave Mahesh.

UAE tour of Zimbabwe

All matches in Bulawayo
Friday, Sept 26 – First ODI
Sunday, Sept 28 – Second ODI
Tuesday, Sept 30 – Third ODI
Thursday, Oct 2 – Fourth ODI
Sunday, Oct 5 – First T20I
Monday, Oct 6 – Second T20I

The years Ramadan fell in May

1987

1954

1921

1888

Specs

Engine: 51.5kW electric motor

Range: 400km

Power: 134bhp

Torque: 175Nm

Price: From Dh98,800

Available: Now

North Pole stats

Distance covered: 160km

Temperature: -40°C

Weight of equipment: 45kg

Altitude (metres above sea level): 0

Terrain: Ice rock

South Pole stats

Distance covered: 130km

Temperature: -50°C

Weight of equipment: 50kg

Altitude (metres above sea level): 3,300

Terrain: Flat ice
 

Iftar programme at the Sheikh Mohammed Centre for Cultural Understanding

Established in 1998, the Sheikh Mohammed Centre for Cultural Understanding was created with a vision to teach residents about the traditions and customs of the UAE. Its motto is ‘open doors, open minds’. All year-round, visitors can sign up for a traditional Emirati breakfast, lunch or dinner meal, as well as a range of walking tours, including ones to sites such as the Jumeirah Mosque or Al Fahidi Historical Neighbourhood.

Every year during Ramadan, an iftar programme is rolled out. This allows guests to break their fast with the centre’s presenters, visit a nearby mosque and observe their guides while they pray. These events last for about two hours and are open to the public, or can be booked for a private event.

Until the end of Ramadan, the iftar events take place from 7pm until 9pm, from Saturday to Thursday. Advanced booking is required.

For more details, email openminds@cultures.ae or visit www.cultures.ae

 

Sly%20Cooper%20and%20the%20Thievius%20Raccoonus
%3Cp%3E%3Cstrong%3EDeveloper%3A%3C%2Fstrong%3E%20Sucker%20Punch%20Productions%3Cbr%3E%3Cstrong%3EPublisher%3A%3C%2Fstrong%3E%20Sony%20Computer%20Entertainment%3Cbr%3E%3Cstrong%3EConsole%3A%3C%2Fstrong%3E%20PlayStation%202%20to%205%3Cbr%3E%3Cstrong%3ERating%3A%3C%2Fstrong%3E%205%2F5%3C%2Fp%3E%0A
The specs

Price, base / as tested Dh135,000

Engine 1.6L turbo

Gearbox Six speed automatic with manual and sports mode

Power 165hp @ 6,000rpm

Torque 240Nm @ 1,400rpm 0-100kph: 9.2 seconds

Top speed 420 kph (governed)

Fuel economy, combined 35.2L / 100km (est)

UPI facts

More than 2.2 million Indian tourists arrived in UAE in 2023
More than 3.5 million Indians reside in UAE
Indian tourists can make purchases in UAE using rupee accounts in India through QR-code-based UPI real-time payment systems
Indian residents in UAE can use their non-resident NRO and NRE accounts held in Indian banks linked to a UAE mobile number for UPI transactions

The rules on fostering in the UAE

A foster couple or family must:

  • be Muslim, Emirati and be residing in the UAE
  • not be younger than 25 years old
  • not have been convicted of offences or crimes involving moral turpitude
  • be free of infectious diseases or psychological and mental disorders
  • have the ability to support its members and the foster child financially
  • undertake to treat and raise the child in a proper manner and take care of his or her health and well-being
  • A single, divorced or widowed Muslim Emirati female, residing in the UAE may apply to foster a child if she is at least 30 years old and able to support the child financially
The biog

Favourite car: Ferrari

Likes the colour: Black

Best movie: Avatar

Academic qualifications: Bachelor’s degree in media production from the Higher Colleges of Technology and diploma in production from the New York Film Academy

New schools in Dubai
The specs

Engine: 1.5-litre turbo

Power: 181hp

Torque: 230Nm

Transmission: 6-speed automatic

Starting price: Dh79,000

On sale: Now

The specs

Engine: 5.2-litre twin-turbo V12

Transmission: eight-speed automatic

Power: 715bhp

Torque: 900Nm

Price: Dh1,289,376

On sale: now

Match info

Athletic Bilbao 0

Real Madrid 1 (Ramos 73' pen)

The biog

Name: Abeer Al Shahi

Emirate: Sharjah – Khor Fakkan

Education: Master’s degree in special education, preparing for a PhD in philosophy.

Favourite activities: Bungee jumping

Favourite quote: “My people and I will not settle for anything less than first place” – Sheikh Mohammed bin Rashid.

Living in...

This article is part of a guide on where to live in the UAE. Our reporters will profile some of the country’s most desirable districts, provide an estimate of rental prices and introduce you to some of the residents who call each area home. 

Gifts exchanged
  • King Charles - replica of President Eisenhower Sword
  • Queen Camilla -  Tiffany & Co vintage 18-carat gold, diamond and ruby flower brooch
  • Donald Trump - hand-bound leather book with Declaration of Independence
  • Melania Trump - personalised Anya Hindmarch handbag
Breast cancer in men: the facts

1) Breast cancer is men is rare but can develop rapidly. It usually occurs in those over the ages of 60, but can occasionally affect younger men.

2) Symptoms can include a lump, discharge, swollen glands or a rash. 

3) People with a history of cancer in the family can be more susceptible. 

4) Treatments include surgery and chemotherapy but early diagnosis is the key. 

5) Anyone concerned is urged to contact their doctor

 

UAE currency: the story behind the money in your pockets
The years Ramadan fell in May

1987

1954

1921

1888

The years Ramadan fell in May

1987

1954

1921

1888

Sarfira

Director: Sudha Kongara Prasad

Starring: Akshay Kumar, Radhika Madan, Paresh Rawal 

Rating: 2/5

The%20specs
%3Cp%3E%3Cstrong%3EEngine%3A%3C%2Fstrong%3E%202-litre%204-cylinder%3Cbr%3E%3Cstrong%3EPower%3A%20%3C%2Fstrong%3E153hp%20at%206%2C000rpm%3Cbr%3E%3Cstrong%3ETorque%3A%20%3C%2Fstrong%3E200Nm%20at%204%2C000rpm%3Cbr%3E%3Cstrong%3ETransmission%3A%20%3C%2Fstrong%3E6-speed%20auto%3Cbr%3E%3Cstrong%3EFuel%20consumption%3A%20%3C%2Fstrong%3E6.3L%2F100km%3Cbr%3E%3Cstrong%3EPrice%3A%20%3C%2Fstrong%3EDh106%2C900%3Cbr%3E%3Cstrong%3EOn%20sale%3A%20%3C%2Fstrong%3Enow%3C%2Fp%3E%0A
The%20specs
%3Cp%3E%3Cstrong%3EEngine%3A%3C%2Fstrong%3E%201.8-litre%204-cyl%20turbo%0D%3Cbr%3E%3Cstrong%3EPower%3A%20%3C%2Fstrong%3E190hp%20at%205%2C200rpm%0D%3Cbr%3E%3Cstrong%3ETorque%3A%3C%2Fstrong%3E%20320Nm%20from%201%2C800-5%2C000rpm%0D%3Cbr%3E%3Cstrong%3ETransmission%3A%20%3C%2Fstrong%3ESeven-speed%20dual-clutch%20auto%0D%3Cbr%3E%3Cstrong%3EFuel%20consumption%3A%3C%2Fstrong%3E%206.7L%2F100km%0D%3Cbr%3E%3Cstrong%3EPrice%3A%3C%2Fstrong%3E%20From%20Dh111%2C195%0D%3Cbr%3E%3Cstrong%3EOn%20sale%3A%20%3C%2Fstrong%3ENow%3C%2Fp%3E%0A
While you're here
if you go

The flights

Etihad, Emirates and Singapore Airlines fly direct from the UAE to Singapore from Dh2,265 return including taxes. The flight takes about 7 hours.

The hotel

Rooms at the M Social Singapore cost from SG $179 (Dh488) per night including taxes.

The tour

Makan Makan Walking group tours costs from SG $90 (Dh245) per person for about three hours. Tailor-made tours can be arranged. For details go to www.woknstroll.com.sg

The burning issue

The internal combustion engine is facing a watershed moment – major manufacturer Volvo is to stop producing petroleum-powered vehicles by 2021 and countries in Europe, including the UK, have vowed to ban their sale before 2040. The National takes a look at the story of one of the most successful technologies of the last 100 years and how it has impacted life in the UAE.

Read part three: the age of the electric vehicle begins

Read part two: how climate change drove the race for an alternative 

Read part one: how cars came to the UAE

The Brutalist

Director: Brady Corbet

Stars: Adrien Brody, Felicity Jones, Guy Pearce, Joe Alwyn

Rating: 3.5/5

The five pillars of Islam
RESULT

Wolves 1 (Traore 67')

Tottenham 2 (Moura 8', Vertonghen 90 1')

Man of the Match: Adama Traore (Wolves)

AGL AWARDS

Golden Ball - best Emirati player: Khalfan Mubarak (Al Jazira)
Golden Ball - best foreign player: Igor Coronado (Sharjah)
Golden Glove - best goalkeeper: Adel Al Hosani (Sharjah)
Best Coach - the leader: Abdulaziz Al Anbari (Sharjah)
Fans' Player of the Year: Driss Fetouhi (Dibba)
Golden Boy - best young player: Ali Saleh (Al Wasl)
Best Fans of the Year: Sharjah
Goal of the Year: Michael Ortega (Baniyas)

In%20the%20Land%20of%20Saints%20and%20Sinners
%3Cp%3E%3Cstrong%3EDirector%3A%20%3C%2Fstrong%3ERobert%20Lorenz%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EStarring%3A%3C%2Fstrong%3E%20Liam%20Neeson%2C%20Kerry%20Condon%2C%20Jack%20Gleeson%2C%20Ciaran%20Hinds%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3ERating%3A%20%3C%2Fstrong%3E2%2F5%3C%2Fp%3E%0A
APPLE IPAD MINI (A17 PRO)

Display: 21cm Liquid Retina Display, 2266 x 1488, 326ppi, 500 nits

Chip: Apple A17 Pro, 6-core CPU, 5-core GPU, 16-core Neural Engine

Storage: 128/256/512GB

Main camera: 12MP wide, f/1.8, digital zoom up to 5x, Smart HDR 4

Front camera: 12MP ultra-wide, f/2.4, Smart HDR 4, full-HD @ 25/30/60fps

Biometrics: Touch ID, Face ID

Colours: Blue, purple, space grey, starlight

In the box: iPad mini, USB-C cable, 20W USB-C power adapter

Price: From Dh2,099

The Sand Castle

Director: Matty Brown

Stars: Nadine Labaki, Ziad Bakri, Zain Al Rafeea, Riman Al Rafeea

Rating: 2.5/5

Updated: July 19, 2023, 9:23 AM`