Ukrainian Agriculture: Promoting Resilience in the Face of Upheaval

29 Feb 2024

Executive Summary

The war in Ukraine has been devasting for agriculture, reducing production and crippling the livelihoods of growers and other stakeholders. International attention has focused on the grain sector, due to its importance to global food security and concerns over export disruptions. Less attention, however, is paid to other sectors. This report examines the war’s effect on domestic food production, particularly household-level and smallholder farms, with a specific focus on the fruit and vegetable, dairy, poultry, and honey sectors. The report’s conclusion discusses programmatic considerations and areas for intervention by international and domestic actors.

Among our findings, we note labor shortages, which significantly curtail production. Investments to adapt agricultural equipment for use by persons with disabilities (PWDs) could mitigate these shortages and lower unemployment among PWDs, including the growing numbers of veterans with disabilities.

Increasing production also means addressing damaged facilities and vulnerabilities in agricultural infrastructure. Promoting alternative energy sources such as solar panels and biogas would boost agricultural resilience in the face of attacks on energy infrastructure, while lowering agriculture’s environmental impact. Restoring storage infrastructure, which has suffered tremendously during the war, is also critical.

Revitalizing irrigation systems, including secondary irrigation networks, would increase vegetable and fruit production, especially in areas affected by the Kakhovka Dam's destruction. Although repairs to national and oblast-level infrastructurei are beyond the scope of many development actors, local-level interventions focusing on transportation could prove beneficial, especially for household-level and smallholder producers, who are hardest hit by transport costs. Examples of this include small-scale repairs to roads and bridges, support for small businesses offering tractor and vehicle repair services, and help with fuel costs.

In the current economic environment, certain agricultural products hold promise. The production of fodder, for example, should be supported. Household-level and smallholder farms could financially benefit from selling a much-needed product, as well as from easier access to locally grown fodder. The poultry sector is also worth supporting. Rising demand for chicken meat due to its lower cost relative to beef and pork is likely to continue, given Ukrainians’ diminished purchasing power. Finally, support for processing activities would benefit household-level and smallholder farms, whether through restoring damaged processing facilities, expanding existing facilities or developing new processing capacities.

The lack of available veterinary services for dairy and poultry producers should be addressed through support for the veterinary sector and the expansion of existing online services. Additionally, although many programs have already helped farmers acquire inputs such as seed, fertilizer, and veterinary medicines, the need is still there, particularly among farmers trying to maintain their operations near the front line.

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Ukrainian SMEs: Consequences, Challenges and Opportunities - February 2024