(Bloomberg) — The Russian army is increasingly attacking Ukraine's food supply chain, as shells have destroyed a frozen chicken warehouse and soldiers seize tractors and other agricultural equipment to build fortifications and tow armored vehicles.
The attacks not only threaten the growing season in one of the largest food exporters, but also exacerbate a humanitarian crisis as Ukraine and its neighbors struggle to feed people fleeing besieged cities. Several major agro-industries say that some plantations will not take place this year if the war continues because it is not safe for workers to be in the fields.
MHP SE, a major poultry producer, said a warehouse fire caused by shelling near Kiev destroyed $8.5 million worth of frozen chickens. The facility was the largest frozen food store in the country. Another 8,500 tons of poultry, valued at more than US$20 million, are at risk in the southern region, where destroyed roads and railways limit access to its facilities.
Russian forces are also destroying agricultural equipment in occupied areas or taking it and then forcing the local population to build fortifications, the Ukrainian Ministry of Defense said. Around 30 machines in Sumy, east of Kiev, were destroyed on Sunday by bombs. The Kremlin has denied attacking civilians.
The war is forcing Ukraine's agricultural sector, considered the granary of Europe, to increasingly focus on feeding the nation rather than feeding the world. Ukraine is the second largest exporter of cereals and the largest exporter of sunflower oil, but the conflict is causing serious damage to producers, their distribution networks and shipping ports.
Some manufacturing lines of Kiev-based Astarta Holding NV, which produces sugar, grains and milk, and its partners “were disrupted very suddenly,” and some supply chains have been destroyed, said CEO Viktor Ivanchyk in an interview. Astarta normally plants on 220,000 hectares, but Ivanchyk said there have been “multiple cases” of planes, missiles and drones shot down in their fields.
“This will jeopardize the planting campaign in spring, which could lead to a humanitarian crisis in some regions,” said the Ministry of Defense. “Not only is Ukraine's food security threatened. Our country is one of the main suppliers of many types of crops to the markets of Europe and China.”
Astarta is trying to prepare for planting, but the consultancy APK-Inform forecasts that spring grain plantations in general could fall by 40% from last year, and the sunflower area could collapse to a minimum of 13 years. One of the largest agricultural companies, UkrlandFarming, said it is producing 40% fewer eggs than usual after closing several farms, including the largest in Europe, due to artillery fire and power outages, leaving millions of hens without food or care.
Original Note:
Warehouse Bombed, Tractors Stolen as Russia Strikes Ukraine Food
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