Agricultural products in Ukraine will continue to become more expensive

23/03/2023 09:37

Farms bordering war zones reported significant losses, with 25% of smallholder farmers ceasing or reducing their agricultural production due to the war. This is stated in the report of the International Rescue Committee on the impact of the war on the vital agricultural sector of Ukraine, Sky News reports, agronews.ua writes.

Expenditure on livestock and crop production increased by 64% and 72% respectively, which significantly reduced the incomes of small farmers.

Challenges faced include the loss of workers, the destruction of critical infrastructure, and economic instability. Ukraine also became one of the most mine-contaminated countries, which made farming very difficult.

Josie Scott, Coordinator of Emergency Economic Recovery and Development in Ukraine, notes: “Farmers in the region continue to face difficulties in selling their grain due to disruptions in logistics chains and blockades of seaports.

Some of the farmers we spoke to admit that while they are eager to cultivate their land, food storage in regions like Zaporizhzhia has become extremely difficult due to the war's devastating impact on energy supplies.

Limited access, logistical problems and rising transport costs have also led to crop spoilage and discards,” said Scott.

Farmers' losses in the first six months of the war alone are estimated at $2.25 billion.

Before the war, about 7.5 million people worked in agriculture, and according to preliminary estimates, the deficit will be about 1.3 million people.

Ukraine is a major exporter of small grains, including corn, wheat, and barley, and a major producer of sunflower oil, which accounts for about half of global supplies.

The UN said that as many as 25 African countries import more than one-third of their wheat from Ukraine or Russia, and for 15 of them this share is more than half.

The recovery of Ukraine's economy will also depend on the state of its agricultural sector: according to the US Department of Agriculture, more than 55% of the country's territory is arable land, and this sector provides employment for 14% of the population, the publication writes.

Farms bordering war zones reported significant losses, with 25% of smallholder farmers ceasing or reducing their agricultural production due to the war. This is stated in the report of the International Rescue Committee on the impact of the war on the vital agricultural sector of Ukraine, Sky News reports, agronews.ua writes.
Expenditure on livestock and crop production increased by 64% and 72% respectively, which significantly reduced the incomes of small farmers.
Challenges faced include the loss of workers, the destruction of critical infrastructure, and economic instability. Ukraine also became one of the most mine-contaminated countries, which made farming very difficult.
Josie Scott, Coordinator of Emergency Economic Recovery and Development in Ukraine, notes: “Farmers in the region continue to face difficulties in selling their grain due to disruptions in logistics chains and blockades of seaports.
Some of the farmers we spoke to admit that while they are eager to cultivate their land, food storage in regions like Zaporizhzhia has become extremely difficult due to the war's devastating impact on energy supplies.
Limited access, logistical problems and rising transport costs have also led to crop spoilage and discards,” said Scott.
Farmers' losses in the first six months of the war alone are estimated at $2.25 billion.
Before the war, about 7.5 million people worked in agriculture, and according to preliminary estimates, the deficit will be about 1.3 million people.
Ukraine is a major exporter of small grains, including corn, wheat, and barley, and a major producer of sunflower oil, which accounts for about half of global supplies.
The UN said that as many as 25 African countries import more than one-third of their wheat from Ukraine or Russia, and for 15 of them this share is more than half.
The recovery of Ukraine's economy will also depend on the state of its agricultural sector: according to the US Department of Agriculture, more than 55% of the country's territory is arable land, and this sector provides employment for 14% of the population, the publication writes.
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