Posted on February, 27, 2025 at 04:47 pm
The cost of rebuilding Ukraine’s agriculture sector is expected to be more than $55 billion, according to the updated Rapid Damage and Needs Assessment (RDNA4), a joint report by the government of Ukraine, World Bank Group, European Commission and United Nations.
Three years after Russia’s full-scale invasion, the total cost of reconstruction and recovery in Ukraine is estimated at $524 billion over the next decade, which is nearly three times the estimated nominal GDP of Ukraine for 2024, according to the RDNA4, which was released Feb. 25. The priorities include the recovery of housing, energy and critical infrastructure. A separate segment is agriculture.
Ukraine is among the world’s leading exporters of wheat, barley and corn, and the top supplier of sunflowerseed meal and oil. The total losses of Ukraine’s agricultural sector due to the war are estimated at about $80 billion, according to agricultural consultancy UkrAgroConsult, citing a presentation on RDNA4 by Minister of Agrarian Policy and Food of Ukraine Vitaly Koval
According to Koval, the total includes direct and indirect losses from disruption of logistics, reclamation, demining or loss of land, and fertilizer and fuel price increases, among others. World Bank calculations show direct losses in Ukraine’s agricultural sector amounted to $11.2 billion. A separate item is $700 million for the cost of irrigation and water resources.
The most recent US Department of Agriculture (USDA) World Agricultural Supply and Demand report projects Ukraine will produce 22.9 million tonnes of wheat for marketing year 2024-25, down 0.43% from 2023-24; 26.5 million tonnes of corn, down 18.5%; 5.9 million tonnes of barley, down 7%; 12.9 million tonnes of sunflowerseed, down 16.7%.
“I am convinced that the restoration of the agricultural sector should take place today,” Koval said. “The Ministry of Agrarian Policy, together with international partners, is working on various programs to support farmers. An important priority is to help farmers in frontline territories.”
Source: World Grain