Warehouse Bombed, Tractors Stolen as Russia Strikes Ukraine Food

(Bloomberg) --

Russia’s military is striking deeper into Ukraine’s food supply chain, with shells destroying a frozen-chicken warehouse and soldiers commandeering tractors and other farm equipment to build fortifications and tow armored vehicles.

The action not only threatens the growing season in one of the biggest food exporters, it’s also exacerbating a humanitarian crisis as Ukraine and its neighbors struggle to feed people fleeing cities under siege. Several major agribusinesses say some plantings won’t happen this year if the war continues because it’s not safe for workers to be in the fields.

MHP SE, a major poultry producer, said $8.5 million worth of frozen chickens was destroyed in a warehouse fire caused by shelling near Kyiv. The facility was the nation’s largest frozen-food store. Another 8,500 tons of poultry, worth more than $20 million, is at risk in the southern region, where blown-up roads and railways are limiting access to its facilities.

Russian forces also are destroying agricultural equipment in occupied areas or taking it and then forcing local people to build fortifications, the Ukrainian defense ministry said. About 30 machines in Sumy, east of Kyiv, were destroyed Sunday by bombs. The Kremlin has denied targeting civilians.

The war is forcing Ukraine’s agriculture sector, considered Europe’s breadbasket, to focus increasingly on feeding the nation rather than feeding the world. Ukraine is the second-biggest shipper of grains and biggest exporter of sunflower oil, but the conflict is inflicting heavy damage on growers, their distribution networks and shipping ports.

Some manufacturing lines for Kyiv-based Astarta Holding NV, which produces sugar, grains and milk, and its partners “were interrupted very suddenly,” and some supply chains were broken, Chief Executive Officer Viktor Ivanchyk said in an interview. Astarta typically plants on 220,000 hectares (544,000 acres), yet Ivanchyk said there were “multiple cases” of downed jets, missiles and drones in his fields.

“This will jeopardize the sowing campaign in the spring, which could lead to a humanitarian crisis in some regions,” the defense ministry said. “Not only Ukraine’s food security is under threat. 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 sowing, but consultant APK-Inform expects spring-grain plantings overall could fall 40% from last year, and the sunflower area may plummet to a 13-year low. One of the largest agricultural companies, UkrLandFarming, said it’s producing 40% fewer eggs than usual after closing multiple farms -- including Europe’s largest -- due to artillery fire and power cuts, leaving millions of hens without feed or care.

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