UN steps in as Ukrainian agricultural exports slashed by half amid Russian invasion

23 Aug 2022 --- Exports of core Ukrainian agricultural commodities have plummeted by almost half since the beginning of the Russian invasion, compared to the same period in 2021, statistics from Ukraine’s agriculture ministry reveal. Fresh produce exports between February 24 and August 15 this year dropped to 10 million metric tons from around 19.5 million last year.

The United Nations Development Programme (UNDP) has now inked an agreement with the Ministry of Agrarian Policy and Food of Ukraine to raise competitiveness in the war-torn nation’s struggling agriculture sector.

The two organizations will cooperate on developing and promoting digital tools, improving access to “green financing” for Ukrainian agriculture producers, and providing climate-smart tools and technologies to support low-carbon agriculture.

Ukraine’s agriculture ministry reported that the nation’s grain exports in the 2022/23 season up to August 19 are down 51.6% from a year earlier.“This partnership will bring better access to green financing and digital tools, low-carbon technologies and carbon markets,” says UNDP interim resident representative in Ukraine, Manal Fouani.

“Our joint efforts will contribute to the green recovery pathways in Ukraine, while ensuring the role of agriculture in the Nationally Determined Contribution of Ukraine to the Paris Agreement,” he remarks.

“Most importantly, our partnership will help Ukraine retain its position as one of the key agriculture suppliers worldwide.”

Small victories, with more still to be done
As a result of Russia’s attack on Ukraine, which was launched on February 24, 2022, Ukrainian seaports have been blocked, disrupting trade and leaving a vast amount of crops either unharvested or destroyed.

Last week, Ukraine’s agriculture ministry reported that the nation’s grain exports in the 2022/23 season up to August 19 are down 51.6% from a year earlier at 2.99 million metric tons. Grain exports for the previous 2021/22 season, which ended on June 30, rose 8.5% to 48.5 million metric tons, thanks to a large volume of shipments before Russia invaded.

Even as trade flow in the Ukraine-Russia food corridor of the Black Sea has been gradually picking up once more – as it was reopened earlier this month under a deal between Moscow and Kyiv – Ukraine’s 2022 grain harvest forecast is still projected to drop to around 50 million metric tons from a record 86 million metric tons in 2021.

Between February 24 to August 15 this year, Ukraine has exported 3.8 million metric tons of corn, 1.4 million metric tons of sunflower seeds, almost 1 million metric tons of sunflower oil and around 640,000 metric tons of wheat, the ministry data outlines.

The country, whose food production is capable of feeding up to 400 million people, also exported barley, soybeans and oil, according to the government.

Slow climb back to normalcy
Ukraine’s deputy minister of agrarian policy, Denis Bashlyk, stresses the need for state support for farmers, the development of modern irrigation systems, and the resolution of logistical issues in agriculture.

“Before the war we were one of the biggest exporters of wheat, corn and oil,” says Bashlyk. “After Russia launched full-scale war, the world understood that without Ukraine, the world’s food security is threatened.”

“Many countries ended up in difficult conditions, in some countries we can see high inflation rates, and what is worse, millions of people have ended up on the brink of starvation.”

Among small victories for Ukraine’s local food sector, McDonald’s recently decided to reopen its business, where it had over 100 restaurants and 10,000 employees before the war started. The fast food giant’s operations in Russia have remained closed since shortly after the conflict began.

By Benjamin Ferrer