03/2017
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10 M o l d ova Agriculture Bulletin Wine in Moldova to be considered a food product
MDL 10 million in grants to agricultural producers Moldova, Japan sign USD 4.8 million project agreement Number of Moldovans engaged in agriculture increased
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Contents State Initiatives ........................................................................................................... 2 1) 2) 3) 4) 5) 6) 7) 8)
New rules for agricultural subsidies starting in 2017 ...................................................................... 2 Grape, apple and plum EU export quotas to be increased ............................................................. 2 2016 agricultural subsidies fully paid out ........................................................................................ 2 Up to USD 20,000 available in grants for farmers ........................................................................... 2 Pakistan interested in Moldovan agricultural goods ....................................................................... 3 APIA to be reorganized .................................................................................................................... 3 Wine in Moldova to be considered a food product ........................................................................ 3 Less money for agricultural subsidies.............................................................................................. 4
Foreign Aid ................................................................................................................. 4 9) 10) 11) 12) 13) 14)
Moldova to increase agricultural cooperation with Italy ................................................................ 4 MDL 10 million in grants to agricultural producers ......................................................................... 4 Moldova and IFAD to sign new budget agreement ......................................................................... 4 15 EU grants for entrepreneurs in southern Moldova .................................................................... 5 Slovak company to promote Moldovan organic production .......................................................... 5 Moldova, Japan sign USD 4.8 million project agreement ............................................................... 5
Private Sector.............................................................................................................. 6 15) 16) 17) 18) 19) 20)
Number of Moldovans engaged in agriculture increased ............................................................... 6 Moldovan cherry producers discuss growth opportunities ............................................................ 6 Moldovan wines and cognac on display internationally ................................................................. 6 Farmers cautioned about buying seeds and pesticides .................................................................. 7 Potential new case of African swine flu in Rublenita ...................................................................... 7 Agricultural production costs drop 3.4% in 2016 ............................................................................ 7
Note: The Agriculture Bulletin presents a monthly roundup of headlines and news stories related to Moldova’s agricultural sector. This bulletin is prepared by Business & Finance Consulting—a Swiss-based development finance consulting company with a long history of working in Eastern Europe, Central, South and South East Asia and North Africa. Read more »
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BFC Agriculture Bulletin
State Initiatives 1)
New rules for agricultural subsidies starting in 2017
April 4th, 2017, http://www.publika.md/noi-reguli-de-subventionare-pentru-agricultorii-din-moldova-regulamentul-vine-cu-oveste-buna_2943571.html
The Agency for Payments and Intervention in Agriculture (APIA) has announced that it has developed new rules for agricultural subsidies for 2017 which will last for a period of 5 years. It is expected that, under the new rules, subsidies will be provided to approximately 5,000 farmers this year. The changes come as good news for smaller farmers as the minimum subsidy amount has been reduced from MDL 400,000 to MDL 100,000, with a maximum amount of MDL 3 million. Other changes include farmers needing to prove they work at least 5 hectares of land and producers needing to prove at least a 50% stake in production materials and land where processing occurs. In addition, organic farmers will be required to maintain organic production for at least 5 years or return the subsidy amount provided by the state. The new rules will also provide support for Moldovan farmers eager to promote in foreign markets and will also include provisions for developing rural agritourism.
2)
Grape, apple and plum EU export quotas to be increased
April 4th, 2017, http://agrobiznes.md/cotele-de-export-spre-ue-pentru-struguri-de-masa-mere-si-prune-ar-putea-fimajorate.html
Prime Minister Pavel Filip met with European Union (EU) Trade Commissioner Cecilia Malmstrom to discuss export quotas for Moldovan products to the EU. In particular, the two sides discussed that the quotas for table grapes, apples and plums had reached 100%. The two then agreed to increase the quotas for these three products. The Prime Minster also spoke with the EU Health Commissioner to discuss what Moldova needs to do in order to start exporting products of animal origin to the EU; he also met with the EU Commissioner for Regional Development about the possibility of Moldova applying for the ‘Danube 2014-2020’ project with a reduced co-financing percentage required.
3)
2016 agricultural subsidies fully paid out
April 3rd, 2017, http://www.maia.gov.md/ro/comunicate-de-presa/subventiile-aferente-anului-2016-achitate-integral
The Ministry of Agriculture and the Agency for Payments and Intervention in Agriculture (APIA) have announced that subsidies owed to agricultural producers for 2016 have now been fully paid out. The outstanding amount as of early 2017 was MDL 330 million owed on 2,645 applications. In total, subsidies for 2016 were provided for more than 4,500 applications, representing MDL 640 million. The Ministry stated that the delay in payments was the result of a delay with approval of the 2016 budget.
4)
Up to USD 20,000 available in grants for farmers
March 28th, 2017, http://www.trm.md/en/economic/agricultorii-pot-ob-tine-granturi-de-pana-la-20-de-mii-de-dolari/
Moldova’s Agency for Payments and Intervention in Agriculture (APIA) has announced the launch of the sixth round of applications for the ‘Sustainable Land Management’ post-investment grant program. The grant will reimburse up 50% of the cost of investments made, up to USD 20,000. The grants are open to Page 2
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farmers across the country, except those in Chisinau and Balti, who are applying practices and technologies for sustainable land management which ensure soil health and productivity. This latest round of grants will be for farmers that have purchased new machinery after November 1, 2016, have been active producers since 2015 and have applied practices of sustainable land management after November 1, 2016. Application files may be submitted to APIA offices until April 28, 2017.
5)
Pakistan interested in Moldovan agricultural goods
March 28th, 2017, http://www.noi.md/md/news_id/214668
Pakistani businessmen are interested in buying Moldovan fresh fruits and vegetables as well as Moldovan textiles and other products. The group also expressed interest in helping these sectors develop. Moldovan and Pakistani sides conducted further meetings to elaborate on more concrete cooperation projects at the Moldovan-Pakistan Business Forum which saw 20 Pakistani companies participate.
6)
APIA to be reorganized
March 21st, 2017, http://infomarket.md/en/agriculture/The_Agency_for_Intervention_and_Payment_in_the_Field_of_Agriculture_of_Moldova_A IPA_will_be_reorganized/
Moldova’s Agency for Payments and Intervention in Agriculture (APIA) will be reorganized and considered a self-governing institution under the Ministry of Agriculture. The agency will be responsible for the effective management of the National Fund for Agriculture and Rural Development, including financial resources received from the development partners. APIA’s responsibilities will also include considering applications submitted for grants and subsidies, submitting payments for subsidies, performing onsite visits, monitoring compliance with eligibility criteria and contractual terms for granted subsidies, developing procedural guides for support measures, and providing promotion, communication, information and control for the proper implementation of projects financed from the National Fund for Agricultural and Rural Development. Financing for APIA will be provided from the state budget, donations, sponsorships and other legal sources. The agency will also be required to provide full monthly reports on the management of funds, including lists of applicants and grant recipients, the amount of subsidies identified in the process of implementing projects and any identified violations which occur.
7)
Wine in Moldova to be considered a food product
March 17th, 2017, http://infomarket.md/en/agriculture/Wine_in_Moldova_will_be_considered_a_food_product_it_will_be_possible_to_sell_it_in _stores_after_2200_and_the_restrictions_on_its_advertising_will_be_lifted
Amendments have passed in Parliament which will reclassify wine in Moldova into one of several categories based on the name of the wine, the geographical origin of the wine and the variety of grape used to make the wine. The passed amendments also include a measure that will allow wine, unlike other alcoholic beverages, in Moldova to be sold at stores after 22:00. In addition, wine will no longer fall under an article which restricts its advertising on television and in print media. The purpose of the adopted amendments is to ensure sustainable development of the wine sector. Page 3
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8)
Less money for agricultural subsidies
March 6th, 2017, http://jurnaltv.md/ro/news/2017/3/6/mai-putini-bani-pentru-agricultura-10275061/#1
Agricultural subsidies are expected to fall this year by nearly MDL 250 million, meaning that agriculture will be supported by approximately 2% of budget revenues instead of the 4% farmers had requested. Officials earlier approved subsidies totaling MDL 900 million lei; however, this most recent decision will allow officials to only offer MDL 660 million for the subsidies. The reduced amount has producers outraged and threatening to leave agricultural production as they consider it too expensive an undertaking without government support.
Foreign Aid 9)
Moldova to increase agricultural cooperation with Italy
March 27th, 2017, http://curentul.md/stiri/camera-de-comert-moldo-italiana-si-aipa-vor-semna-un-acord-de-colaborarepentru-a-creste-competitivitatea-agricola-in-r-moldova.html
The Moldovan-Italian Chamber of Commerce and Industry and Moldova’s Agency for Payments and Intervention in Agriculture (APIA) have signed a cooperation agreement designed to attract new investments and technologies which increase the competitiveness of the Moldovan agricultural sector. The agreement will work to establish Italian investments in Moldova’s agricultural sector which aid in Moldova’s implementation of the Association Agreement it signed with the European Union (EU) and enhance knowledge of the business environment of the agricultural sector, with specific attention given to new technologies and support which stimulates agricultural entrepreneurs. As part of the agreement, jointly organized workshops and trainings will be held for a quicker and more efficient exchange of knowledge and information. The agreement is considered a formalization of an already fruitful relationship between the Italian business environment and Moldova’s agricultural sector.
10) MDL 10 million in grants to agricultural producers March 27th, 2017, http://www.trm.md/en/economic/granturi-de-peste-zece-milioane-de-lei-pentru-producatorii-agricoli/
Grants worth over MDL 10 million in total will be given to 28 agricultural producers in Moldova as part of the fifth round of applications for the ‘Sustainable Land Management’ post-investment grant program. Grants were awarded to 13 beneficiaries in the south, 9 beneficiaries in the north and 6 beneficiaries in the center. The ‘Sustainable Land Management’ post-investment grant program was launched in 2014 as part of ‘Competitive Agriculture in Moldova’, a project funding by the World Bank, the Global Environmental Facility and the governments of Sweden and Moldova. Thus far, the project has provided financial support to agricultural producers in Moldova totaling approximately MDL 32 million.
11) Moldova and IFAD to sign new budget agreement March 22nd, 2017, http://moldpres.md/en/news/2017/03/22/17002212
Moldova is set to sign a USD 24 million agreement on a financing program with the International Fund for Agricultural Development (IFAD), with USD 5 million of the funds in the form of grants. The financing Page 4
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will be used mainly for infrastructure, including restoring water resources in the country. The program, IFAD VI, has been underway for two years; however, new financial and assistance products for agricultural producers were recently approved. The program also offers grants worth USD 10,000 for each project which provides for minimum land tilling. 34 grants of this kind were provided in 2016, with 50 more available for 2017. Grants are also available for creating forest belts which prevent soil erosion, infrastructure projects, the creation of small inter-village markets, and the development of post-harvest infrastructure. Loans are also available under the project, especially for members of savings and loan associations and young entrepreneurs.
12) 15 EU grants for entrepreneurs in southern Moldova March 11th, 2017, http://radiochisinau.md/uniunea-europeana-ofera-granturi-pentru-15-antreprenori-din-republica-moldova--47206.html
The European Union (EU) has awarded 15 grants (up to EUR 18,400 each) for entrepreneurs developing businesses in Gagauzia and Taraclia. The selected entrepreneurs will each qualify for one year of technical assistance and consulting support for business development in areas such as agriculture, manufacturing and services. Among the ideas selected were the growing of vegetables in greenhouses, the packaging and storing of fruits, bakery production, the manufacture of textiles, and grape seed oil production. It is expected that the grants will create 90 new jobs and help improve living conditions in Gagauzia and Taraclia. A new round of grants offered by the European Union was launched on March 1, 2017. Proposals can be submitted until May 2, 2017. Winners are eligible to receive funding of up to EUR 18,400.
13) Slovak company to promote Moldovan organic production March 10th, 2017, http://www.timpul.md/articol/o-companie-slovaca-va-sustine-un-
Slovak company Rokosan will support a project promoting organic farming which utilizes fertilizers derived from animal byproducts, the use of which is increasing in Europe and has recently come to Moldova and Ukraine. Speaking at an event announcing the project, Deputy Agriculture Minister Ion Parea stressed the need to promote organic farming techniques, including the setting up of businesses which have a processing capacity of 15,000 tons of animal byproduct per year. The number of farming businesses in Moldova which are engaged in organic production has increased from 37 in 2015 to 87 today.
14) Moldova, Japan sign USD 4.8 million project agreement March 9th, 2017, http://www.basarabia.md/moldova-va-deveni-mai-competitiva-in-domeniul-agriculturii-durabile-cu-sprijinulguvernului-japoniei/
The governments of Moldova and Japan have signed an agreement to implement a project aimed at promoting conservation agriculture. For the project, Japan will provide a grant of USD 4.8 million. The project aims to develop sustainable soil management in Moldova and purchase modern agricultural machinery and equipment. Conservation agriculture is a priority for Moldova and requires that agriculture adapts to climate change based on best practices that protect and improve soil fertility. Page 5
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Private Sector 15) Number of Moldovans engaged in agriculture increased April 4th, 2017, http://agrobiznes.md/numarul-populatiei-ocupate-in-agricultura-a-crescut.html
The National Bureau of Statistics has announced that the number of people employed in agriculture grew 29,100, or 7.6%, in 2016 as compared to 2015. In total, 410,900 people were engaged in activities in the agricultural sector, representing 33.7% of total employment Moldova. Out of this, 44% were engaged in the production of agricultural goods exclusively for their own consumption.
16) Moldovan cherry producers discuss growth opportunities March 29th, 2017, http://moldpres.md/en/news/2017/03/29/17002409
More than 70 cherry producers and exporters gathered to discuss how to best enhance the competitiveness of Moldovan cherries in export markets. The discussions focused on the prospects and challenges the sector faces as well as actions which could be undertaken to extend cherry exports in both traditional markets like Russia and new and developing markets like the European Union (EU) and the United Arab Emirates. More specifically, the group discussed problems which affect competitiveness such as non-homogenous soils, a lack of post-harvest equipment and insufficient promotion. Cherry production in Moldova has great potential for development, especially since cherries are in demand in international markets and Moldova has seen a continued rise in production the last several years. In order to enhance the performance of cherries in Moldova, experts believe that producers need to orient their production to the specific requirements of markets they wish to enter, develop new varieties of cherries and invest in post-harvest infrastructure. Additionally, experts believe it is necessary for Moldova to develop a national brand for cherries which will lead to increased recognition in international markets. The meeting was organized by the ‘High Value Agriculture Activity in Moldova’ project of the United States Agency for International Development (USAID) in partnership with the Moldova Fruit Association and the AGROinform National Farmers’ Federation.
17) Moldovan wines and cognac on display internationally March 28th, 2017, http://moldpres.md/en/news/2017/03/28/17002379
Moldovan wines and cognacs were well-received at two prestigious international events: ProWein 2017 held in Dusseldorf, Germany and Drink Fair 2017 held in Chengdu, China. In total, 390 wines and cognacs from Moldova were presented, many of which received the highest distinctions. Wine products were presented under the country brand of ‘Wine of Moldova’ and were accompanied by a virtual tour which gave visitors the chance to vividly see the advantages of Moldovan wine. This year marked the fourth time Moldova participated at ProWein under the common brand of ‘Wine of Moldova’ and brought together 35 wineries. Moldovan wines were also promoted heavily at the entrance to the event and via 800 complimentary leaflets and 600 promotional bottles. This was Moldova’s second year participating at Drink Fair, where 24 wine companies banded together under the ‘Wine of Moldova’ brand.
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Moldova’s participation in both fairs is important for the continued growth of the sector as ProWein is one of the largest wine exhibitions in the world and China is on pace to become the second largest consumer of wines worldwide.
18) Farmers cautioned about buying seeds and pesticides March 13th, 2017, http://www.trm.md/en/economic/agricultorii-sunt-indemnati-sa-nu-procure-pesticidele-din-strada/
Specialists of the National Food Safety Agency are warning farmers to be careful when buying seeds this year as they have discovered several agricultural shops selling seeds without certificates of origin and quality. The Agency is also cautioning farmers not to buy pesticides from street vendors either as they are dangerous products which must be inspected for use in the country.
19) Potential new case of African swine flu in Rublenita March 11th, 2017, http://en.publika.md/new-potential-swine-fever-hotbed-in-northern-moldova_2635672.html
A possible new outbreak of African swine flu has been reported in the northern district of Soroca, along the border with Ukraine. The virus was detected in seven pigs in the village of Rublenita; the animals have been killed and incinerated as a precaution. Last year, African swine flu was discovered in the northern village of Donduseni. The village was quarantined three months before being declared virus-free.
20) Agricultural production costs drop 3.4% in 2016 March 7th, 2017, http://moldovanews.md/07032017/economika/147324.htm
Prices for the production of agriculture in 2016 decreased 3.4% compared to prices in 2015. In particular, production prices decreased 38.4% for berries, 10.9% for melons and 8.7% for cereals and legumes. Price production declines were also recorded for buckwheat (by 28.2%), barley (by 11.7%), wheat (by 10.5%), corn (by 5.1%), pome fruits (by 3.7%), sunflower oil (by 3.4%) and rapeseed (by 3.1%). Rises were recorded for the price to produce potatoes (by 19.5%), tobacco (by 16.8%), grapes (by 15.7%), stone crops (by 2.7%), soybeans (by 2.6%) and vegetables (by 1.6%). Prices for animal production also decreased by 0.2% overall, with production prices for sheep and goats dropping 31.1% and egg production prices dropping 0.9%. Production prices rose for cattle (by 11.6%), milk (by 9.3%), poultry (by 7.3%) and pigs (by 2.0%).
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Prepared by Business & Finance Consulting (BFC) www.bfconsulting.com Articles are taken directly from local sources without any fact-checking; they are provided as a convenience and for informational purposes only. Business & Finance Consulting (BFC)’s editing is limited to providing a short summary in English of the texts, highlighting the main points of the original articles. All rights reserved by the authors. BFC takes no responsibility and does not make any representation or warranty, express or implied, or assume any responsibility whatsoever for the content, accuracy, and reliability, or completeness of any of the articles.