How does the war in Ukraine affect the production and export of food from the country?

Russia's invasion of independent Ukraine was a turning point for Europe and the world, especially in terms of security, energy architecture and the international economy. The consequences of Russian aggression have not stopped within the borders of Ukraine, but affect other areas of the world, and one of the most noticeable effects is the further increase in inflation and food prices. Both Ukraine and Russia previously had a sizable share of global food trade. How did the war affect this situation?

Negative economic effects of the war

The war in Ukraine had a negative impact on the production and export of food from the country. The armed conflict has caused a number of problems for agriculture and the food industry, including a reduction in cropland, damage to infrastructure, disruption to trade and restricted access to export markets. And this affected the violation of food security not only in Ukraine, but also in the international arena.

What is food security? It is a multi-faceted concept, usually defined as individuals' continued physical access to sufficient and safe food that meets their dietary preferences and needs for an active and healthy life. Any interruption of this state is treated as food insecurity, which may affect social and economic development.

Russia and Ukraine are the main producers of agricultural products in the world. In 2020, Ukraine alone accounted for as much as 35% of the world export of sunflower oil and sunflower seeds, 13% of corn, 11% of rye, 10% of rapeseed and 9% of wheat. The largest recipients of grain from Ukraine (in 2019) were Egypt, Indonesia and the Philippines. The war resulted in a reduced supply and production of these agricultural products, which translated into higher prices and upset the global stability of food markets.

The impact of the war on food production in Ukraine

The war in Ukraine had a significant impact on food production in the country. The armed conflict has caused a number of problems for agriculture and the food industry, including a reduction in cropland, damage to infrastructure, inaccessibility to certain areas, disruption to trade and labor shortages.

The first problem that affected food production in Ukraine was the reduction of the crop area. This was directly related to the difficult (or even completely impossible) access to land and other natural resources. In addition, the war destroyed many agricultural areas, including farmland and infrastructure such as roads and bridges, making it difficult to transport and distribute food. Subsequently, the armed conflict had a negative impact on the water and sewage infrastructure, which in many regions complicated the issue of access to running water, necessary for agricultural production.

Despite the fact that the front has moved east of Ukraine in recent months, many farmers still do not have access to their fields. The problem is not only the destruction of land or the remains of military equipment, but also the risk of landmining. Unfortunately, according to the Ministry of Internal Affairs of Ukraine, demining the country may take from 5 to even 10 years [4]. And the prolonged lack of access to many agricultural areas will certainly have a negative impact on agricultural production and limit food access to local markets.

It is also impossible not to mention internal difficulties. The war also affected the economic situation of the country, which resulted in a decrease in the purchasing power of the inhabitants of Ukraine. Fewer people can afford to buy more expensive food products, and this leads to a decrease in demand for some agricultural products.

Ultimately, the war also affected the lack of workers in agriculture and the food industry. This is influenced by both the involvement of a large part of society (especially men) in military operations and the mass emigration of people who simply run away from the threat of military operations.

Undoubtedly, the harvest of 2022 was the most difficult harvest in the history of independent Ukraine. Despite the ongoing fighting and the difficult situation, according to data from the Ministry of Agricultural Policy and Food of Ukraine, by September 23, 2022, Ukrainian farmers had harvested 30.26 million tons of main crops from a total area of 9.1 million hectares (which is about 61% of the planned area for cultivation before the war).

Harvest of barley and rape amounted to 5.5 million tonnes and 3.1 million tonnes, respectively. Wheat was harvested from 99% of the area (a total of 19.2 million tonnes), peas - from 98% (250.7 thousand tonnes), millet - from 64% (68.1 thousand tonnes) and buckwheat - from 40% ( 66.1 thousand tons). In turn, sunflower was harvested from 14% of the area (1.29 million tons), soybeans from 6% (228,000 tons), sugar beets from 5% (469,000 tons), and corn from less than 1% (92.2 thousand tons). These data quite clearly show the scale of the impact of the war on Ukrainian agricultural production.

The impact of the war on food exports from Ukraine

The war in Ukraine had a negative impact not only on the production, but also on the export of food from the country. The armed conflict has caused a number of problems for agriculture and the food industry, including damage to infrastructure, disruption to trade and restricted access to export markets. Problems in export routes translate into reduced financial revenues of the country, at a time when the Ukrainian government needs huge resources for armament, maintaining the army and mitigating the effects of the war from the liberated territories.

The war in Ukraine had a negative impact on foreign trade. The war resulted in limited access to some export markets, as well as transport problems, which made it difficult to sell agricultural products to foreign markets.

One of Ukraine's main export problems is the impossibility of transporting food by sea, which is the result of the Russian blockade of ports on the Black Sea. It is worth emphasizing that sea transport was the main method of transporting Ukrainian goods to foreign markets. Although in some areas of Ukraine the armed situation has stabilized, and new solutions are constantly being sought, and Western countries offer assistance to the government of Ukraine, at the moment the export of Ukrainian food remains at a low level - especially compared to the period before 2022. We must not forget about another undesirable effect of the war situation, which is the decline in the competitiveness of Ukrainian products on the market, resulting from the lack of investment in agriculture and the food industry.

Summary

The tragic consequences of Russia's invasion of Ukraine have been, are and will be felt in the human, social, economic and political context. Certainly, the end of the armed conflict will be only the first step towards stabilizing security and the situation in Europe, and it should rather be expected that the road to achieving a satisfactory state of affairs will be a long one. Without adequate and balanced help from its Western partners, Ukraine will find it difficult to "get back on its feet" and compensate for war losses: both in human, financial and economic terms. On the other hand, the war in Ukraine showed the world how much Ukrainian grain exports had on food security in many countries of the world. A quick end to the war and reconstruction of Ukraine is therefore in the interest of many countries.