The calculations of indirect losses help to understand not only the scale of the decline in the industry, but also the need for a full resumption of production.
Indirect losses to Ukraine’s agriculture due to reduced production, blockage of ports and increased cost of production factors are estimated at $ 23.3 billion. This was reported by the press service of the Ministry of Agrarian Policy, citing a report of the KSE Institute.
Indirect losses due to shortage of agricultural crops are estimated at 9.6 billion dollars. USA. The most significant decline in the yield forecast in 2022 is for wheat (33%decrease in 2022 is expected compared to the base case), sunflower (32%), barley (31%), corn (18%).
In 2022, other crops are also expected to fall by 22%, which means an additional $ 3.3 billion in lost revenue.
The decline in the number of pets leads to a decline in production for several years into the future: the total loss of the livestock sector is estimated at 682 million US dollars.
Losses due to declining yields of perennial crops amount to 89 million dollars. USA, perennial crop losses over five years will amount to 222.4 million US dollars.
Due to the blockade of the ports of the naval forces of the Russian Federation, Ukraine is faced with an excessive saturation of the domestic market of export-oriented products and an almost fourfold increase in the cost of logistics in exports, which led to a decrease in domestic prices for major export-oriented crops of more than 30%. Indirect losses of producers from lower prices for export-oriented crops (wheat, corn, barley, sunflower) amount to 11.9 billion US dollars.
At the beginning of the Russian invasion, Ukrainian agricultural producers were faced with an increase in the cost of production factors, in particular, fertilizers and fuel. The total loss due to increased production costs is estimated at US $ 859 million.
“The calculation of indirect losses helps to understand not only the scale of the decline of the industry, but also the need for a full resumption of production. A significant portion of the lost revenue is used to cover the costs of subsequent sowing campaign and the purchase of feed for the animals. Without partial compensation for the losses, farmers in the regions most affected by the war, will not be able to resume production, “commented Roman Neyter, a expert at the Center for Food and Land Use Research of the KSE Institute, on calculations.
Earlier it was reported that Turkish President Recep Tayyip Erdogan and UN Secretary General António Guterres discussed options for unblocking Ukrainian grain exports in a telephone conversation.
Zelensky on the blockade of ports: Russia needs this crisis
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Source: korrespondent
I am David Wyatt, a professional writer and journalist for Buna Times. I specialize in the world section of news coverage, where I bring to light stories and issues that affect us globally. As a graduate of Journalism, I have always had the passion to spread knowledge through writing.