Abandoned fields, abandoned equipment, mined areas, and finally, the financial problems of Ukrainian companies led to the severe degradation of local agriculture, which needs to be restored after a year of war. The Bloomberg agency writes about the problems of Ukrainian farmers, which talked to the victims.
Farmer Oleksandr Klepach says that usually in the spring, wheat and rapeseed can be seen on his fields, but this year only weeds sprouted there – about 1,000 hectares remained untouched due to the Russian invasion. Klepach could not engage in crops due to the occupation of the territories, now the Russian troops have left his fields, but now he has a new problem – mines, from which the land must be freed. Additional problems run into finances: there is not enough money for fuel and pesticides – prices have risen sharply, there are not enough seeds of the usual barley, which is why you have to switch to other crops. The choice fell on sunflower, a crop that Klepach had not grown for 8 years.
“At the moment, Ukrainian agriculture looks like a lottery. If there are ideal conditions, we can get a decent harvest. But the chances are lower than usual,” says HarvEast CEO Dmitry Skornyakov.
Agriculture in Ukraine is extremely important for the economy of the republic, as well as for world food markets. The influence of Ukrainian grain on international food security has repeatedly become the subject of negotiations between Ukraine and Russia mediated by the UN. At the moment, it is clear that the "grain deal" will be valid until mid-July – on March 18, it was extended by the parties for 120 days.
Klepach's problems are now relevant for the entire industry. Farmers are forced to reduce the use of fertilizers, put up with idle fields, and are forced to switch to growing cheaper oil crops. The agency estimates that these measures could reduce overall grain production by about 20% compared to the precipitous 2022. Another problem is the service of many farmers in the Armed Forces of Ukraine, because of this, farmers cannot fully devote themselves to work.
“I serve in the Armed Forces of Ukraine and I want my farm and I to stay alive,” says the owner of a farm near Kiev, Valery Myrtyshko.
Last year, the planting season took place before the Russian invasion, which allowed at least part of the harvest to be harvested; in the new year, many fields were simply left unsown due to their proximity to war zones. Also last year, many companies retained financial cushions at the end of 2021, when a record harvest was recorded. However, at the beginning of 2023, the picture is not so rosy – there is no money, no stocks of seeds, no fertilizers, and the volume of sown areas is declining due to the consequences of the war. According to the International Grains Council, grain production in Ukraine in 2023 will fall to 47 million tons – less than half the pre-war level.
“The situation is critical. Ukrainian farms are well equipped. We can recover. But the main question is how long this war will continue,” says Kateryna Rybachenko, vice president of the Ukrainian Agribusiness Club.
In addition to internal problems, Ukrainian farmers also face external problems related to grain exports. The agency notes that Ukrainian grain was quoted on world markets due to the speed of deliveries, but now ships with grain are sometimes forced to wait several weeks before shipping. An increase in the time lag negatively affects grain prices, which only reduces the margin of Ukrainian farmers.
