Bayer says Russian crop supplies for 2023 growing season are “contingent on peace” in Ukraine

15 Mar 2022 --- Following the continued invasion and war in Ukraine, agri-food commodities giant Bayer has suspended all its advertising and promotional activities in Russia, in addition to halting capital investment projects in this country indefinitely. The company is monitoring future supplies to Russia, inferring they will be withheld unless there is peace.

The German multinational, which also manufactures pharmaceuticals, has hit the brakes on all non-essential businesses in Russia and Belarus. However, it will continue to supply life-saving commodities to the populations of these regions.

The intent here is to ensure continued access to health and agriculture products that are much needed by civilians in these countries. Withholding these supplies would only multiply the war’s ongoing toll on human life, Bayer underscores.

“Bayer has about 700 employees in Ukraine. Their safety is now our top priority, and we are taking all appropriate measures to protect them,” Rolf Ackermann, communications manager at Bayer, tells FoodIngredientsFirst.

Numerous multinational agri-food businesses in Ukraine shuttered operations out of safety concerns.“The central office in Ukraine is closed, the two seed stations have been shut down as planned in recent weeks and are undergoing maintenance. Please understand that we cannot go into further detail.”

Global community-led efforts
Bayer states it will continue to provide its Ukraine-based colleagues and their families with financial aid, shelter and evacuation assistance.

In response to the humanitarian crisis, Bayer has established a €3 million (US$3.3 million) Disaster Relief Fund and provided both monetary assistance and donations of health products like antibiotics to help up to 27,000 Ukrainian patients.

Its employees have collectively raised more than €900,000 (US$989,800) through a Red Cross relief campaign, which the company will be matching.

Furthermore, Bayer colleagues have set up a platform where employees can offer housing to colleagues from Ukraine and their families who may need temporary shelter, while country organizations and employee-led initiatives organize local volunteering campaigns.

Safeguarding farmers and civilians
For the 2022 growing season, Bayer has already provided essential agricultural inputs to farmers in Russia to alleviate additional pressure on the global food system. 

The company underscores that it is prepared to support these local farmers as the window for planting is closing in only a few weeks.

“From the outset, we have utterly condemned this brutal aggression against a sovereign country. Our hearts ache as we see the devastation and death affecting innocent civilians, including children,” states Bayer.

Ukraine is notably considered as “Europe’s bread basket,” and supplies of wheat are among the hardest hit.“Thousands have been killed or wounded, millions are fleeing the country, and the humanitarian situation of those who stay is deteriorating by the hour. We stand by the people of Ukraine who can fully count on our solidarity and support,” it continues.

Massive toll on global food chains
More than two weeks have passed since Russia’s invasion of Ukraine. Since its unfolding, agricultural analysts have warned of the severe impact that war and economic sanctions could have on the global food market.

Numerous multinational agri-food businesses in Ukraine shuttered operations out of safety concerns. Earlier this month, French food giant Danone closed down one of its two factories in Ukraine and temporarily stopped production in the other. 

Ukraine is notably considered as “Europe’s bread basket,” and supplies of wheat are among the hardest hit. Given the Black Sea’s location, fertile land and yield potential, the region supplied over 30% of global wheat exports several weeks ago. Now that two of its major surrounding countries are in conflict, prices are soaring and many countries are preparing to source their supplies from elsewhere. 

But stocks of corn, sunflower oil and barley exports have also taken a toll, adding to rising food prices that could prevent millions from affording nutrient-rich foods.

Pre-war, food prices were already at the highest levels since 1975, due to inflation.

By Benjamin Ferrer