Livestock production losses in Ukraine: economic damages caused by the war

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Purpose. The purpose of this study is to assess the economic losses incurred by Ukraine’s livestock production sector due to the war in 2022. The research focuses on quantifying the scale of food losses and evaluating their economic impact. Methodology. The study uses a comprehensive methodological framework developed by the Kyiv School of Economics (KSE). Economic losses were calculated using both national average and regional pricing approaches. The analysis focuses on losses of cattle, pigs, poultry, and other livestock, as well as milk and eggs. Results. The study found that the largest economic losses in Ukraine’s livestock production sector in 2022 were concentrated in regions directly impacted by military actions, including frontline areas and territories temporarily occupied by the Russian Federation. Donetsk, Kherson, Zaporizhzhia, and Kharkiv regions suffered the greatest losses. Total economic damages from livestock production losses amounted to over 785.6 million euros based on regional prices and 800.9 million euros based on national prices. While regional price variations and productivity differences played a role in the overall economic losses, the primary driver of these losses was the direct impact of the war on livestock farming in affected area. The findings aim to contribute to the broader discussions regarding reparations and post-war agricultural recovery efforts. Originality. This study offers a novel approach by focusing specifically on war-induced food losses in the livestock sector and assessing both direct and indirect economic impacts. The use of both national and regional pricing provides a more accurate estimate of economic losses, highlighting the regional disparities caused by the conflict. The findings contribute new insights into the economic repercussions of war on agricultural productivity and food security. Practical value. The results of this study are important for policymakers and international organisations working in the field of post-war reconstruction and reparations. A quantitative assessment of economic losses can serve as a basis for developing recovery strategies, allocating aid, and prioritising investments in the agricultural sector. Moreover, the research highlights the need for region-specific approaches to effectively address the unique challenges faced by each affected area.