With the Russian invasion of Ukraine marking its second anniversary this weekend, new data has revealed that the Ukrainian agricultural sector has suffered more than $80 billion (€73.7 billion) in direct losses and damages in the two years since the conflict began.
Data collected by the Center for Food and Land Use Research of the Kyiv School of Economics (KSE Agrocenter) and the World Bank found that the total value of destroyed assets as a result of the conflict is $10.3 billion (€9.46 billion), with agricultural machinery accounting for $5.8 billion (€5.32 billion) in losses.
Some 181,000 units of agricultural machinery and equipment have been either partially or completely damaged, with 18,200 tractors destroyed, worth around $1.6 billion (€1.47 billion).
Zaporizhya, Kherson, and Luhansk
The Zaporizhya, Kherson, and Luhansk regions incurred the most damage, collectively accounting for two-thirds (65%) of all farming and agricultural damage.
The study assesses the financial impact of theft or destruction to already-produced grain and oilseeds at $1.97 billion (€1.81 billion). Losses attributed to damage to grain storage facilities are estimated at $1.8 billion (€1.65 billion), while damage to perennial plantations amounts to $398 million (€365.66 million). Livestock losses are valued at $254 million (€233.28 million), and losses in aquaculture and fishing are estimated at $35 million (€32.16 million).
Simultaneously, overall losses, which encompass the income of agricultural producers and increased production costs, have more than doubled compared to the previous assessment, reaching $69.8 billion (€64.09 billion).
Total losses due to reduced crop production stand at $35.1 billion (€32.26 billion), the study found. Additional losses due to decreased livestock production amount to $5.6 billion (€5.15 billion). Losses resulting from lower domestic prices are estimated at $24.1 billion (€22.12 billion), with losses due to heightened production costs totaling $4.4 billion (€4.04 billion).
Polish Blockade
"Ukrainian farmers are suffering additional losses due to the blockade of the Ukrainian-Polish border by the Poles," commented Andriy Dykun, head of the Ukrainian Agri Council. "According to our experts, if Ukraine's border with Poland is not unblocked by the end of February, the country's budget could lose $200 million (€183.6 million).
"For example, export losses in November 2023 amounted to $160 million (€147.2 million), and imports fell by $700 million (€644.2 million)."
Dykun accused Polish demonstrators of playing "a very dangerous game" by playing into Putin's hands.
"Therefore, at every opportunity, we urge our colleagues to weigh all their steps and work for a common victory, not division and resentment," he said. "We are stronger only together and only together can we defeat the enemy."
'Not Ashamed'
Elsewhere, Józef Wiśniewski, president of Wipasz, one of Poland's largest feed producers, has said in an interview that he is "not ashamed of buying grain from Ukraine", with the company having purchased 83,000 tonnes of cereals from the neighbouring country in the past four years.
" I built grain warehouses for Polish farmers and I will trade with Poles first," he told the Portal spożywczy news platform. "However, if something is not available on the Polish market, I will buy it in Ukraine."
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