Losses and damages of the agricultural sector of Ukraine amount to more than $80 billion – KSE Agrocenter

21 February 2024

According to the latest calculations of the Center for Food and Land Use Research of the Kyiv School of Economics (KSE Agrocenter), conducted jointly with the World Bank, the Ukrainian agricultural sector has suffered more than $80 billion in direct losses and damages as a result of the full-scale invasion. 

In particular, the total value of destroyed assets is $10.3 billion, which is 18% higher than the estimate in April 2023. The largest category of losses is damaged and destroyed agricultural machinery, which amounts to $5.8 billion or 56.7% of all losses. 

In total, about 181 thousand units of agricultural machinery and equipment were partially or completely damaged due to the invasion.

Experts estimate the damage caused by the theft or destruction of already produced grain and oilseeds at $1.97 billion, losses due to damage to grain storage facilities at $1.8 billion, damage to perennial plantations at $398 million, livestock at $254 million, and aquaculture and fishing at $35 million. 

At the same time, losses, which include foregone income of agricultural producers and increased production costs, more than doubled compared to the previous review and amounted to $69.8 billion. 

Total losses due to lower crop production amounted to $35.1 billion, additional losses due to lower livestock production amounted to $5.6 billion, losses caused by lower domestic prices are estimated at $24.1 billion, and losses due to higher production costs amounted to $4.4 billion.

Given the scale of the damage and losses suffered by agricultural producers in Ukraine, the total reconstruction and recovery needs over the next ten years amount to $56 billion. Priority needs for 2024 are estimated at $435 million, most of which has already been covered by donor funding.

The report presents the details of the Rapid Damage and Needs Assessment (RDNA) that was conducted for the agricultural sector of Ukraine as part of the third RDNA report prepared by the Government of Ukraine, the World Bank, the United Nations, and the European Union.