Business news from Ukraine

Ministry of Agrarian Policy announces possible crop losses this season

20 July , 2022  

An aerospace study of winter crops in Ukraine revealed their reduction from 9.14 million hectares to 8.38 million hectares (by 0.75 million hectares, or 8.3%), mainly due to the economic consequences of a full-scale invasion of the Russian Federation to Ukraine.
As reported on the website of the Ministry of Agrarian Policy and Food on Wednesday, a decrease in this indicator means a drop in yields from these areas by 15%, which is equivalent to the loss of 4.2 million tons of grain (20% of the crop).
The relevant data was provided by a team of experts from the National Technical University. I. Sikorsky, Space Research Institute of the National Academy of Sciences of Ukraine, Joint Research Center of the European Commission and the World Bank (WB) at a meeting of the coordination meeting of international donors.
The research group is collecting data on direct and indirect damage caused to the Ukrainian agro-industrial complex for possible further recovery of compensation from the Russian Federation. The group continues to monitor crops and yields, and will present an updated forecast for the loss of winter and spring crops in September.
It is clarified that a 20% loss of winter crops will occur provided that they can be harvested in the current volume, without taking into account the ongoing war. Otherwise, crop losses may be higher.
“If it weren’t for the perseverance and sacrifice of our farmers, the losses for the agricultural sector would have been much greater,” Denis Bashlyk, Deputy Minister of Agrarian Policy for Digital Development, Digital Transformations and Digitalization, stated during the meeting.
He added that thanks to cooperation with international partners and the use of modern digital technologies, all losses of Ukrainian agricultural producers are recorded.
“A systematic analysis of crop losses will help attract more support from international partners in the agricultural sector to help agricultural producers survive these difficult times and subsequently revive production,” Klaus Deininger, a leading economist at the World Bank, was quoted by the Ministry of Agrarian Policy as participating in the meeting.
As reported with reference to a study by the KSE Institute, the total amount of direct losses caused to the agricultural industry of Ukraine as a result of the full-scale invasion of the Russian Federation amounted to $4.3 billion by mid-June. military operations – $ 2.14 billion.
In addition, 22% of the total damage to the Ukrainian agro-industrial complex fell on the loss of agricultural equipment ($926 million), 14% – on already manufactured products ($613 million), 6% – on granaries ($272 million), 3% – on livestock breeding ($136 million). ) and inventory items, including fuel and fertilizers ($120 million), 2% for perennial plantings ($89 million).
The total amount of indirect losses of the agricultural industry of Ukraine from the invasion of the Russian Federation for the period from February 24 to mid-June amounted to $23.3 billion. At the same time, the country suffered the largest losses (51%) due to the reduction in the cost of agricultural products caused by the blockade of its seaports – $11.9 billion.