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Global Agro Finance

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Total losses from the war in the agricultural sector have already exceeded 40 billion dollars - report KSE Argocenter

After the start of the full-scale russian invasion, KSE Agrocentr regularly calculates the losses and needs of the Ukrainian agriculture. KSE Institute has updated the figures on direct, indirect losses and needs for the restoration of the agricultural sector due to the war, as of February 24, 2023, that is, for the year of the war. According to the latest estimates, damage to the agro-industrial complex of Ukraine amounted to 40.2 billion dollars. However, the report does not take into account losses due to the mining of agricultural lands and the costs required for their inspection and demining.

Therefore, the direct losses of the agricultural sector amount to 8.7 billion dollars, most of the losses, namely 6 billion dollars, fall on destroyed and damaged agricultural machinery and warehouses for manufactured products. Indirect, including a decrease in the production of crop and livestock products, as well as disruptions in logistics, amount to another 31.5 billion dollars.

Livestock losses are estimated at $1.7 billion, most of which are in milk production. Losses due to reduced animal productivity amount to $1.1 billion, with more significant losses occurring in milk, poultry and eggs. The losses in the dairy sector are not final, as new attacks on dairy farms occur every day.

"Currently, the invaders are cynically and purposefully destroying the capacities of dairy farms. In the front-line and occupied territories, farms are barely surviving, often without electricity, communication, or the ability to transport and prepare fodder. This is the situation in Kharkiv and Kherson regions, a number of regions of Zaporizhzhia region, Donetsk and Luhansk regions. Due to communication problems, it is difficult to estimate the exact livestock losses, especially in the private sector. It is difficult to get reliable information about what is happening in the above-mentioned regions, but the losses of the industrial sector are at least 50,000 heads, which in monetary terms is 80 million dollars," says the general director of the Association of Milk Producers, Hanna Lavreniuk.

According to KSE Agrocentr estimates, $29.7 billion is needed to cover the needs for reconstruction and recovery of the industry, including $10.2 billion for immediate and short-term needs (2023-2026) and $19.7 billion for medium and long-term needs (2027–2033 years).

Full text of the report:

Press service of the Association of Milk Producers