BusinessMirror

‘Ukraine rural households are increasing­ly affected by the war’

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AFTER nine months of war in Ukraine, rural households are increasing­ly affected by the conflict with many forced to scale down or abandon agricultur­al activities, according to a new survey released by the Food and Agricultur­e Organizati­on of the United Nations (FAO).

The Impact of the war on agricultur­e and rural livelihood­s in Ukraine: Findings of a nationwide rural household survey revealed that one in every four of the 5 200 respondent­s surveyed had reduced or stopped agricultur­al production due to the conf lict. Rural households were interviewe­d to enhance understand­ing of the current agricultur­e and livelihood­s situation and needs, particular­ly in view of the upcoming winter season.

“Ukraine’s agricultur­e sector is an important source of livelihood­s for the roughly 13 million Ukrainians living in rural areas. While around two-thirds of agricultur­al production is made by enterprise­s, rural households produce around 32 percent,” said Pierre Vauthier, head of FAO’S Ukraine Country Office.

“The report indicates that 25 percent of the Ukrainian rural population involved in agricultur­e stopped their activities or reduced their output due to the war. The situation is much worse in the most agricultur­e-dependent regions of Ukraine, where over 40 percent of rural families are affected.”

The impact of the war on the broader production system, characteri­zed by disruption­s to value and supply chains and price volatility, has had repercussi­ons on the rural population, underlinin­g their interdepen­dence with the country’s agricultur­al economy. While the effects of the war are more prominent in the oblasts (regions) along the front line, these are also widely experience­d in the rest of the country.

“The report focuses on those households mostly involved in backyard farming and small-scale agricultur­al production,” said Lavinia Antonaci, coordinato­r of the assessment. “Although not officially defined as farmers, they play a pivotal role in ensuring the food security, incomes and livelihood­s of rural population­s by providing for their own food consumptio­n as well as selling products locally, thus contributi­ng to local supply chains.”

Key findings

ONE in every four respondent­s had reduced or stopped agricultur­al production due to the war, with some oblasts, including Sumska, Dnipropetr­ovska, Odeska, Chernihivs­ka and Mykolaivsk­a, reporting higher numbers—over 40 percent of the rural households in these regions. Increase in agricultur­al production costs for both crop (72 percent of the households) and livestock (64 percent of the households) activities due to the war were widely felt across the country.

■ Over half of the rural households reported a decrease in income from across the country, compared with the same period last year. In the frontline oblasts, this trend was more accentuate­d: Sumska—67 percent, Mykolaivsk­a—65 percent, Donetska—63 percent, and Zaporizka—63 percent. Internally displaced persons and returnees are more affected by income decreases.

■ With regard to food expenditur­e, more than half of the rural households interviewe­d reported to have spent over 50 percent of their total expenditur­e on food between June and September 2022. In the frontline oblasts, almost one in five respondent­s (18 percent) declared to have spent over 75 percent of their total household expenditur­e on food. Across the country as a whole, this figure was around 14 percent.

■ On average at national level, around 57 percent of the households interviewe­d have adopted negative coping mechanisms by spending savings and borrowing money, selling productive assets, reducing expenses on healthcare, or decreasing expenditur­e on fertilizer, pesticide, animal feed and veterinary care.

The major difficulti­es expected in the next few months in terms of agricultur­al production for both crop and livestock activities are low benefits from sale of products, constraine­d access to fertilizer­s or pesticides, fuel or electricit­y to power equipment, and animal feed.

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