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Losses and damage to Ukraine's agricultural sector in full-scale war exceed US$80 billion – KSE

Wednesday, 21 February 2024, 19:34
Losses and damage to Ukraine's agricultural sector in full-scale war exceed US$80 billion – KSE
A farmer wears a bulletproof vest during crop sowing which takes place 30 km from the front line. Stock photo: Getty Images

The Ukrainian agricultural sector has suffered more than US$80 billion in direct losses and damages as a result of Russia's full-scale invasion.

Source: Kyiv School of Economics with reference to the calculations of the Center for Food and Land Use Research of the Kyiv School of Economics (KSE Agrocenter), conducted jointly with the World Bank

Details: In particular, the total value of the destroyed assets is US$10.3 billion, which is 18% higher than the estimate in April 2023.

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"The largest category of losses is damaged and destroyed agricultural machinery, which amounts to $5.8 billion or 56.7% of all losses. 

In total, about 181,000 units of agricultural machinery and equipment were partially or completely damaged due to the invasion," the report says.

At the same time, experts estimated the damage caused by the theft or destruction of already produced products at US$1.97 billion, losses due to damage to grain storage facilities at US$1.8 billion, damage to perennial plantations at US$398 million, livestock at US$254 million, and aquaculture and fisheries at US$35 million.

At the same time, losses, which include the lost income of agricultural producers and increased production costs, more than doubled compared to the previous review to US$69.8 billion.

Quote: "Total losses due to lower crop production amounted to US$35.1 billion, additional losses due to lower livestock production amounted to US$5.6 billion, losses caused by lower domestic prices are estimated at US$24.1 billion, and losses due to higher production costs amounted to US$4.4 billion.

Given the scale of the damage and losses suffered by agricultural producers in Ukraine, the total reconstruction and recovery needs over the next ten years amount to US$56 billion. Priority needs for 2024 are estimated at US$435 million, most of which has already been covered by donor funding."

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