Damages to the agricultural sector of Ukraine as a result of the war reached $40.3 billion

The agricultural sector of Ukraine suffers direct losses due to the destruction of equipment and resources, as well as losses due to a decrease in farmers’ incomes.

Ukrainian production and exports have significantly decreased compared to the pre-war level due to the attacks of the Russian Federation on all branches of the agricultural sector of Ukraine and the accompanying losses from military operations. This is stated in the report of the Center for Strategic and International Studie (CSIS).

Thus, as of June 2023, Ukraine’s agricultural sector suffered direct losses to agricultural machinery, equipment and storage in the amount of $8.7 billion, as well as stolen or damaged resources, such as fertilizers and seeds, and products, crops and livestock.

Agricultural sector losses of $40.3 billion indicate reduced incomes for farmers due to lost production, lower selling prices for products and higher operating costs at all stages of the agricultural value chain.

Further losses and damages resulted from Russia’s withdrawal from the Grain Agreement in July 2023 and an immediate increase in attacks on agricultural export infrastructure along the Black Sea and Danube coasts.

In the period from July to October, 17 separate attacks on Ukrainian ports, grain complexes and civilian ships were recorded. As a result of the attacks, 300,000 tons of grain were destroyed.”Limited export routes increased transportation costs and reduced the amount of goods farmers could sell. While incomes have fallen, costs for agricultural inputs have risen, and damage to farms and equipment is causing additional, heavy costs for farmers. As a result, many farmers are shutting down their operations and reducing their harvests,” the CSIS report said.