June 25, 2022
Russia confiscates and destroys agricultural machinery in Ukraine - 03/22/2022 - Commodity Shuttle

Russia confiscates and destroys agricultural machinery in Ukraine – 03/22/2022 – Commodity Shuttle

The Russia attacks Ukraine One of its strongest economic points: Agriculture. Russian forces seize and destroy agricultural machinery, fertilizer, seeds and fuel stocks, according to a report from the country’s producers to S&P Global Commodity Insights.

The war deals a severe blow to the agricultural sector in Ukraine. Agriculture Minister Roman Leshchenko told Reuters on Tuesday that the country is expected to plant less than half of what it forecast this spring.

Last year, 15 million hectares were planted, an area that will drop to 7 million this year. Farms of corn, sunflower, barley, soybeans and sugar beets, which are important products for domestic industrial processing and exports, will be affected.

Ukrainians are The largest exporter of sunflower oil It ranks third in the world in barley and rye. The country also has great importance in exports of maize and wheat, ranking fourth in the international trade of these grains.

The war will reduce Ukraine’s share in world trade. According to the Minister of Agriculture, maize planting is expected to drop to 3.3 million hectares, well below 5.4 million in 2021.
Leshchenko told Reuters that 6.5 million hectares of wheat were planted in the winter, but only 4 million could be harvested because of the war.

According to S&P, in addition to the spring planting of corn and sunflowers that were significantly lower than last year, productivity will certainly be lower. Farmers say sowing wheat and barley in the winter will also see yield losses.

After the loss of cultivated area and a decrease in productivity, the participation of Ukrainians in the foreign market will decrease, since their ports, through which 90% of exported goods leave, The flow was blocked due to the war.

In addition to jeopardizing the food security of many countries, prices of basic commodities may remain high, as Ukrainians are of great importance in the foreign market, according to S&P Global Commodity Insights.

On Friday (18) Ukrainian wheat was trading at $415 per ton, $67 more than the start of the Russian invasion of Ukraine.

Grain production this year should be far from 84 million tons for 2021. The same is true for exports, which are also unlikely to reach the 65 million tons initially expected.

Gross domestic product smallest Agricultural growth is expected to be just 1% this year, lower than the previous forecast of 2.8%. Estimates are from Ipea (Institute of Applied Economic Research).

soy download The downward revision of GDP occurs due to the 9% decline in the estimate of soy production. As a result, plant production will be 0.3%, down from the previous estimate of 2.6%.

no loss beef Protein production, previously expected Growth of 3.6%, it should only develop 3% this year, according to new data from Ipea.

Wheat Pesticide use in wheat crops increased 19% in the 2021 crop, with sales reaching $268 million, according to a survey by Spark Intelligence Strategy.

Leader For the first time, the best-selling herbicide for this crop was, with a total of US$104 million. This increase is attributed to the increased adoption of pre-harvest drying by producers.

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