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Billions of dollars in damage: These are the consequences of the Ukraine war for agriculture

2024-02-19T15:32:30.973Z

Highlights: The war in Ukraine is causing significant damage to Ukrainian agriculture through destruction and bottlenecks in all areas. A global problem for farmers is the skyrocketing prices of fertilizers. Total damage to agriculture is estimated at $8.7 billion (as of February 24, 2023). This corresponds to 30 percent of the total Ukrainian agricultural capital before the start of the war. The damage is most severe in the Ukrainian oblasts in the east and south. According to estimates, almost 11.5 million tons of storage capacity were destroyed.



As of: February 19, 2024, 4:22 p.m

By: Bona Hyun

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What are the consequences of the Ukraine war for agriculture © Jens Büttner/dpa

The consequences of Russia's attack on Ukraine are also noticeable in agriculture.

It is not just the Ukrainian agricultural sector that is affected.

London - The war in Ukraine is causing significant damage to Ukrainian agriculture through destruction and bottlenecks in all areas.

A global problem for farmers is the skyrocketing prices of fertilizers.

Consequences of the Ukraine war: Since Putin's attack, fertilizer prices have skyrocketed

British farmers are complaining about additional fertilizer costs amounting to 1.45 billion pounds.

UK farmers spent around £1.42 billion in 2022 and £964 million in 2023, according to a new analysis of monthly data on fertilizer prices and consumption by the Energy and Climate Intelligence Unit (ECIU). 1.12 million euros) for fertilizers.

This is what businessgreen reports

.

Fertilizer costs skyrocketed before and after the Russian invasion, reaching

an unprecedented high in the summer of 2022, according to

businessgreen .

The main cause was the sharp rise in gas prices, which had already begun before the Russian invasion.

“Fertilizer prices had already more than doubled in autumn 2021 – before the start of the war in Ukraine – and had reached a utopian high price level,” a spokeswoman for the Bavarian Farmers’ Association in Munich told

ZDF

in March 2023 .

Ukraine war has consequences for agriculture - sales of fertilizers are falling

As a result, fertilizer sales in Germany fell sharply.

The three most important types of fertilizer are nitrogen (N), phosphate (P) and potassium (K), which are available in the agricultural trade in different concentrations and mixtures.

According to the Federal Statistical Office, sales of nitrogen fertilizer fell by 13 percent to 1.1 million tons in the 2021/22 financial year.

The Wiesbaden authorities reported sales of phosphate fertilizer had fallen by 40 percent to just under 115,000 tons.

For potash it was 306,000 tons, a decrease of 31 percent.

Support for the agriculture and food industry in Germany

The Federal Ministry of Food and Agriculture announced measures due to the worrying consequences in agriculture.

Two aid programs worth around 180 million euros were set up.

In 2022, the BMEL launched a small grant program with 10 million euros to support fishing businesses that are particularly suffering from the consequences of the Russian war of aggression against Ukraine. 

In order to further reduce dependence on fossil energy sources, the BMEL is making 136 million euros available over the next four years (2023-26) for the federal program to promote energy efficiency and renewable energies for greater climate protection and crisis resilience in agricultural companies.

Consequences of the Ukraine war for agriculture: high damage caused by destruction

In Ukraine, the total damage to agriculture is estimated at $8.7 billion (as of February 24, 2023).

This corresponds to 30 percent of the total Ukrainian agricultural capital before the start of the war.

The Center for Food and Land Use Research at the Kyiv School of Economics estimates agricultural damage for the evaluation and uses secondary data from various sources.

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The damage is most severe in the Ukrainian oblasts in the east and south.

This is where most of the fighting took place.

The second largest category of damage is stored crops.

The damage caused by the destruction and theft of stored products is estimated at 1.9 billion US dollars, including around four million tonnes of grain and oilseeds.

Storage facilities (e.g. grain silos) are the third most affected by damage in agriculture.

According to estimates, almost 11.5 million tons of the original 75 million tons of storage capacity were partially or completely destroyed.

Source: merkur

All news articles on 2024-02-19

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