A photo of a burning grain storage facility after an enemy shelling in the city of Uman was circulated by various international media outlets. This happened in early October, and within a month, the founder of our SaveUA Foundation, Andriy Dykun, provided dozens of comments on the protection of grain infrastructure in all regions of Ukraine.
The head of the foundation told journalists that since July 18, when Russia unilaterally withdrew from the grain deal, the Russians have carried out 17 massive attacks on grain storage facilities throughout Ukraine, destroyed more than 300 thousand tons of Ukrainian grain, damaged and partially destroyed 105 facilities of Ukraine's port infrastructure. They also launched more than 500 Shahed-136 kamikaze drones across Ukraine in September alone. Most of them targeted critical infrastructure and agricultural enterprises.
Each attack on Ukraine's port infrastructure and agricultural enterprises is an attack on the food security of the whole world.
"The ports of the Danube cluster are currently the only waterway for Ukrainian agricultural exports. If it is not protected by powerful air defense systems, the consequences will be greater. First of all, for those countries that depend on Ukrainian agricultural products," comments Andriy Dykun, adding that "Russians are destroying not only port infrastructure but also other grain storage facilities and agricultural enterprises throughout Ukraine, aiming to create a food crisis in Ukraine and the world. The hit to the grain storage facility in Uman is an example of the actions of the aggressor, who, in addition to energy infrastructure, has set a new goal for itself - the destruction of crops, elevators, grain warehouses, and vehicles. It no longer matters where the elevators are located, in what region of the economy. This is illustrated by the example of the city of Uman, where 7 shaheds flew to one of the grain silos. The city, where the headquarters of the Ukrainian Agri Council and the charity fund are located, is in the center of Ukraine and very far from ports."
The Ukrainian agricultural sector suffers huge losses after each attack by the enemy. As a result of the attacks on the Danube cluster ports and the blocking of seaports, grain exports to Asia, Africa and Europe have decreased by almost 3 million tons per month, and Ukraine has lost 40% of its port export potential. It will take at least a year and millions of dollars to rebuild the infrastructure in some regions. Currently, the survival of agricultural enterprises is the number one issue for Ukraine.
According to Andriy Dykun, the Ukrainian agricultural sector is in a critical situation regarding financial performance in 2023. According to the experts of the Ukrainian Agri Council, direct losses of the agricultural sector by the end of 2023 will amount to more than $3 billion, and most of the enterprises will go bankrupt. The main reasons are the blockade of the Black Sea and expensive logistics. The situation is exacerbated by the rise in the cost of fuel, agrochemicals, and spare parts, which has led to higher production costs amid lower purchase prices.
"We tried to estimate the financial performance of the agricultural sector this year, focusing on the crop production sub-sector. We used the production of the main crops - wheat, corn, sunflower, barley, soybeans and rapeseed - in the central regions of Ukraine. Due to low purchase prices and high production costs, all crops except soybeans are unprofitable this year. According to the forecast, crop production losses will exceed $3 billion. Under the scenario that provides for improvement of seaport conditions, the figure may drop to $1.2 billion, but the industry will still suffer large losses even under the optimistic scenario," says Andriy Dykun.
Andriy Dykun also emphasized that the agricultural sector in Ukraine is unprofitable for the first time in 20 years. Therefore, the information support of the world's media is extremely important now, as it is the support of our partners and the international community.
Our team is grateful for the attention of foreign journalists, because support for the agricultural sector is support for our country's economy. This means supporting the population and helping Ukraine's defenders.
We continue to provide humanitarian assistance and tell the world community about the real state of the agricultural sector.
Reuters World Grain Nieuwe Oogst ESM - European Supermarket Magazine
DAILY SABAH BBC News Hellenic Shipping News Worldwide