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Ukraine’s Agricultural Crisis Deepens Amid War and Drought

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Ukraine’s agricultural sector is facing a severe crisis as Russian attacks on Black Sea ports have halted grain exports, which previously accounted for 90% of the country’s agricultural trade. Farmers have harvested over 28 million tons of grains, but many are unable to sell their produce, leading to cash shortages necessary for planting winter crops. This situation is compounded by a lack of storage facilities, particularly in war-affected regions, forcing some farmers to leave their crops in the fields.

The impact of this blockade is not just immediate; it threatens to destabilise Ukraine’s economy further. With estimates suggesting annual losses from unsold agricultural products could reach $20.5 billion, the financial strain on farmers is escalating. Prices for food-grade wheat have plummeted by 30-35%, pushing many farms into operating at a loss. As the harvest season progresses, the situation is expected to worsen, particularly with the corn harvest looming.

The Ukrainian government is exploring alternative export routes via rail and road, but these measures are temporary and insufficient to replace the lost maritime trade. The ongoing drought has also reduced the Danube’s transport capacity, complicating efforts to move goods. Experts warn that the current crisis could prompt a reevaluation of Ukraine’s long-term export strategies, which have not adapted to the realities of the war.

As the conflict continues, the urgency to restore safe shipping routes remains paramount. Agriculture Minister Taras Vysotsky emphasises that without reopening the Black Sea ports, Ukraine’s agricultural future hangs in the balance, highlighting the need for immediate and effective solutions to ensure the survival of the sector.

Source: DW News

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News Category: Money Tags: agriculture, drought, economy, ukraine, war

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