Doing business
Farms bordering the war zones reported significant losses – 25% of small farmers have stopped or reduced 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.
The cost of livestock and crop production increased by 64% and 72%, respectively, which significantly reduced the income of small farmers.
The challenges faced include the loss of workers, the destruction of critical infrastructure, and economic instability. Ukraine has also become one of the most mine-contaminated countries, making farming very difficult.
Josie Scott, Emergency Economic Recovery and Development Coordinator for Ukraine, said: “Farmers in the region continue to face difficulties in selling their grain due to disruptions in supply chains and blockades of seaports.
Some farmers we spoke to acknowledge that while they are eager to work 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 transportation costs have also led to spoilage and wastage of crops,” 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 the world’s supply.
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, the 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 employs 14% of the population.
Source: https://mind.ua/