05/2017
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12 M o l d ova Agriculture Bulletin Helping Moldova’s agro-food industry compete
PARE 1+1 to provide MDL 6.6 million in financing
8 new projects approved by World Bank project New project launched to improve Moldova’s berry sector
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Contents State Initiatives ........................................................................................................... 2 1) 2) 3) 4)
Ministry of Agriculture meets with donor organizations ................................................................ 2 Moldova, Russia discuss agricultural exports .................................................................................. 2 Moldova-Romania Intergovernmental Commission meets ............................................................ 2 Moldova approves National Fund allocation procedures ............................................................... 3
Foreign Aid ................................................................................................................. 3 5) 6) 7)
Agricultural conservation project approved.................................................................................... 3 USAID project to help Moldovan beekeepers ................................................................................. 3 Winemakers encouraged to utilize grant opportunities ................................................................. 4
Private Sector.............................................................................................................. 4 8) 9) 10) 11) 12) 13) 14)
22 Moldovan companies to participate at Belagro ......................................................................... 4 International exhibition encouraged by MIEPO .............................................................................. 5 Grape exports to the EU grew by 15 times in 5 years ..................................................................... 5 Two cases of African swine flu detected in Moldova ...................................................................... 5 Agricultural exports increasing in 2017 ........................................................................................... 5 New type of mulberry to be registered in Moldova ........................................................................ 6 Late winter weather affects agricultural sector .............................................................................. 6
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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State Initiatives 1)
Ministry of Agriculture meets with donor organizations
May 26th, 2017, http://www.maia.gov.md/ro/comunicate-de-presa/avut-loc-sedinta-sectoriala-donatorilor
The Ministry of Agriculture hosted a meeting with donor organizations to discuss cooperation with development partners in regards to Moldova’s agricultural sector. At the meeting, information on the volume, type and conditions of external support for 2017 was presented in the context of the Ministry’s 2017 priorities, the National Strategy for Agriculture and Rural Development 2014-2020, the Government Action Plan (2016-2018) and the implementation of the Association Agreement between the Republic of Moldova and the European Union. The parties also discussed ways to improve the format of consultations with development partners as well as mechanisms for collecting and analyzing data on sectoral support. Other topics of interest were discussed, including the development of education, research and extension in agriculture as well as the revitalization of the livestock sector and result-oriented approaches focused on finished products. Deputy Agriculture Minister Iurie Usurelu expressed the Ministry’s intention to intensify cooperation with donors in order to maximize the benefits of assistance provided to Moldova’s agricultural sector. The Deputy Minister also confirmed the importance of both modernizing the agri-food sector to be in line with European requirements and standards as well as the importance of identifying new markets for domestic production such as Asia and the near East. For their side, development partners welcomed the initiatives and expressed their readiness to provide information on assistance and develop a platform/database concept for the efficient management of external support.
2)
Moldova, Russia discuss agricultural exports
May 25th, 2017, http://agrobiznes.md/rosselhoznadzor-ar-putea-extinde-lista-exportatorilor-moldoveni-dar-cu-anumiteconditii.html
A delegation from Moldova, including Radu Mudreac, chairman of the Parliamentary Committee on Agriculture, and Andrei Neguta, Moldovan Ambassador to the Russian Federation, met with Russian representatives to restore trade relations with Russia, the loss of which caused Moldova to suffer significant financial losses. To this end, the Moldovan delegation expressed interest in expanding the list of agricultural enterprises that have access to the Russian market, especially since agriculture is one of the main branches of the Moldovan economy and is actively supported by the state. Iulia Svabauskene, head of Rosselkhoznadzor, noted that Moldovan producers lost the Russian fruit and vegetable market because of a number of cases of products that do not meet Russia's phytosanitary standards, including attempts to introduce Polish plant products into Russia as Moldovan production. Rosselkhoznadzor has stated its willingness to extend the list of Moldovan exporters, but only after it can be sure of the volume and nomenclature of the exports from each enterprise carrying out commercial activity with Russia in order to exclude the delivery of prohibited products. So far, a list of 125 companies has been formed for which the National Food Safety Agency provides guarantees on the safety of the delivered products. This has resulted in an increase in the volume of fruit and vegetable exports to Russia; most notably, 60,000 tons of apples were exported to Russia in the first quarter of this year.
3)
Moldova-Romania Intergovernmental Commission meets Page 2
May 19th, 2017, http://www.maia.gov.md/ro/comunicate-de-presa/s-inaugurat-
The 4th session of the Moldova-Romania Intergovernmental Commission for European Integration was held in May 2017 and included a working session on agriculture. At the working session, parties exchanged views on the structure, constraints and outlook of agriculture and also set out priority directions for cooperation, including: cooperation in apiculture, cooperation in fighting hail, research and knowledge exchanges in farming technologies and the harmonization of Moldovan legislation with the European Union (EU). In addition, the Romanian Ministry of Agriculture will continue supporting Moldova in aligning its agricultural sector with EU requirements, drawing from its own experience during the accession process. The Moldova-Romania Intergovernmental Commission for European Integration was created on the basis of an action plan between the two governments for the implementation of a strategic partnership and was signed on April 27, 2010.
4)
Moldova approves National Fund allocation procedures
May 17th, 2017, http://www.maia.gov.md/ro/comunicate-de-presa/fost-aprob
The government has approved regulations regarding the conditions and procedures for the National Fund, from which the agricultural and rural development policy and subsidy policy receive state funding. This includes measures regarding subsidizing agricultural insurance policies which cover certain risks in livestock, horticulture, viticulture, crops and birds. The draft regulation will last for five years (20172021) and provides for the introduction of a new system for monitoring the validity of investment costs and increasing subsidies to young farmers and women farmers for the purchase goods from local producers. In 2017, the National Fund will have a budget of MDL 900 million, including MDL 231 million provided by the European Neighborhood Program for Agriculture and Rural Development (ENPARD) Moldova. The Fund's resources will be used for approved support measures and will facilitate the modernization of the agro-industrial sector and rural development by enhancing the competitiveness of the agro-industrial sector through restructuring and modernization, ensuring sustainable resource management and increasing investments in physical infrastructure, rural services and the related infrastructure of agricultural enterprises.
Foreign Aid 5)
Agricultural conservation project approved
June 2nd, 2017, http://moldpres.md/en/news/2017/06/02/17004163
Moldova’s parliament has approved a USD 4.8 million grant agreement with Japan for a project that will help the country purchase updated agricultural machinery and equipment. The project will be managed by the 2KR Food Production project and will be implemented over a period of two years. Agricultural conservation is a priority in Moldova and is specifically stipulated in the National Strategy for Agricultural and Rural Development 2014-2020. More particularly, the National Strategy requires that Moldova works towards the development of sustainable agriculture by applying practices that protect and improve soil fertility.
6)
USAID project to help Moldovan beekeepers Page 3
May 19th, 2017, http://infomarket.md/en/agriculture/Moldovas_beekeepers_to_have_USAID_grants_to_buy_honey_containers_/
The ‘High Value Agricultural Activity’ project of the United States Agency for International Development (USAID) has launched the first grant competition for honey producers and exporters. Winners will each receive between MDL 250,000 and MDL 400,000 as grants for the purchase of special containers to collect and store honey. The grant will cover up to 60% of the total cost of the containers. Applications will be accepted until June 22, 2017. Exporting honey from Moldova is a very promising business, especially since European Union (EU) beekeepers are able to meet only 60% of EU demand. However, to have greater access to this market, Moldovan beekeepers must meet EU standards, including those regulating the storage and transportation of honey. Currently, honey in Moldova is harvested into buckets, aluminum barrels or plastic containers, all of which lessen its quality. With the help of the USAID grants, Moldovan beekeepers will be able to buy containers which meet the best safety and quality standards. Over the last 10 years, the export of honey has increased more than 12 times, from 245 tons in 2006 to 3,100 tons in 2016.
7)
Winemakers encouraged to utilize grant opportunities
May 19th, 2017, http://tvrmoldova.md/economic/vinificatorii-din-republica-moldova-sunt-indemnati-sa-acceseze-granturilenevalorificate/
Moldovan winemakers are being encouraged to access grant opportunities offered as part of the World Bank-funded PAC II food competiveness project. Winemakers can use the grants to strengthen production and export capacities. Such activities can include improving product quality, carrying out activities to make products more attractive, improving internal company processes and optimizing costs. So far, only 15 of the 120 beneficiaries of the PAC II grants are involved in the wine sector. Grants cover up to 50% of the cost of a beneficiary’s project, up to MDL 200,000. PAC II has a budget of USD 45 million and is being implemented from 2015 through 2019.
Private Sector 8)
22 Moldovan companies to participate at Belagro
May 29th, 2017, http://www.interlic.md/2017-05-29/produsele-agroalimentare-moldovene-ti-vor-fi-promovate-la-belagro48981.html
22 Moldovan companies involved in the agricultural sector will participate at the Belagro international exhibition in Minsk, Belarus from June 6 to June 10, 2017. This year, Belarus has offered Moldova exhibition space free of charge, and the Moldova Investment and Export Promotion Organization (MIEPO) is helping companies by contributing finances to help them make the trip. Products from Moldova will be presented together at one country stand. The exhibition will be attended by farmers and animal breeders as well as manufacturers of feed and fertilizer, seeds and plants, veterinary medicines, agricultural machinery and packaging and refrigeration equipment. Participants at the exhibition will have an opportunity to promote their products, find new partners, explore new market opportunities and learn about the latest trends in the field. There will also be various product presentations, tastings and master classes. Last year, 535 enterprises from 23 countries attended Belagro. Page 4
Moldovan Prime Minister Pavel Filip will also attend the exhibition as part of his official visit to Belarus. In addition to the exhibition, the Prime Minister will also meet with representatives of various official delegations.
9)
International exhibition encouraged by MIEPO
May 28th, 2017, http://www.trm.md/en/social/companii-din-moldova-pot-participa-la-o-expozitie-in-turcia/
The Moldova Investment and Export Promotion Organization (MIEPO) is encouraging domestic companies involved in the agricultural sector to participate in the 25th ‘Food and Technology’ international exhibition in Istanbul this September. This is the largest food products and processing exhibition in Turkey, with about 300 exhibitors participating annually. The exhibition brings together local and international producers and provides a useful platform to promote products and develop business partnerships.
10) Grape exports to the EU grew by 15 times in 5 years May 26th, 2017, http://mybusiness.md/ru/novosti-biznesa/item/5784-za-pyat-let-eksport-stolovogo-vinograda-v-es-vyros-v-15raz
The export of table grapes from the Republic of Moldova to the European Union (EU) has grown 15 times in terms of value since 2011. In 2011, the value of table grapes to the EU was EUR 574,000; in 2016, it was EUR 8,736,000. According to the Moldova Investment and Export Promotion Organization (MIEPO), the production of table grapes in Moldova averages 60,000 tons per year.
11) Two cases of African swine flu detected in Moldova May 16th, 2017, http://www.realitatea.md/alerta--doua-focare-de-pesta-porcina--depistate-din-nou-in-moldova--cazurile-aufost-notificate-de-ansa-in-raioanele-soroca-si-edinet_57660.html
The National Food Safety Agency announced two outbreaks of African swine flu within the territory of the Republic of Moldova: one in the village of Rublenita (Soroca region) and the other in the village of Bratuseni (Edinet region). Animals in the protection zone around the areas are being continually monitored, and additional cases have not been detected. The National Food Safety Agency has held a meeting with various governmental agencies to discuss the epidemiological situation in Moldova and to undertake measures to resolve the outbreak of the disease within Moldova.
12) Agricultural exports increasing in 2017 May 16th, 2017, http://www.trm.md/en/economic/piata-europeana-principala-destinatie-a-exporturilor/
The export of agricultural food products in the first three months of 2017 amounted to USD 58,996,000, a 24% year-on-year increase. Moldova supplies agricultural products to more than 70 countries; however, the main trading partners of Moldova are the European Union (EU) and the Commonwealth of Independent States (CIS), which together represent 85% of foreign trade destinations.
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Moldovan exported agricultural products include cereals and cereal products, oilseeds, fruits, dairy products, eggs, sugar, honey and alcoholic and non-alcoholic beverages. Moldova is also one of the world's largest exporters of nuts. The total annual production volume of nuts is between 16,000-18,000 tons a year, cultivated on an area of about 6,000 hectares.
13) New type of mulberry to be registered in Moldova May 15th, 2017, http://agora.md/stiri/32303/pentru-prima-data--un-nou-soi-de-mur-urmeaza-a-fi-inregistrat-in-r--moldova
After several years of selection, Dumitru Trocin, a Moldovan horticulturalist, has filed an application for the registration of a new type of mulberry called the “Moldovan Mulberry” or the “King of Mulberries”. This is the first time that a request has been made in Moldova for a new kind of mulberry. To make the new berry, Mr. Trocin selected the best berries available in the market and created two parental forms. From these parental forms, he was able to eventually produce a mulberry which ripens earlier and has a sweet and sour taste. The new variety produces 7-8 kilograms of 10-12 gram fruit per plant. The new mulberry was created for the domestic market; however, Mr. Trocin is also examining the potential of expanding worldwide. To this end, he has filed a patent application in Poland and, following this, will file one in France. Mr. Trocin is also looking to patent another three varieties of mulberries, each with a different ripening period.
14) Late winter weather affects agricultural sector May 12th, 2017, http://moldpres.md/en/news/2017/05/12/17003551
The damage to Moldova’s wine sector from April’s frosts and heavy snowfall is estimated at 43%, with 1,400 hectares of vineyards from 170 households being affected. The most affected regions were Telenesti, Calarasi, Ialoveni, Causeni and Taraclia. According to data collected from 29 regions, the disaster affected an area of 34,500 hectares in total, with the degree of damage ranging from 5% to 100%. Fruit crops, especially apple trees, suffered the most. It was also found that some data on weather-caused damages were exaggerated by regional directorates and the farmers. In general, the sowing areas (especially sunflower and maize) which were said to be completely affected were found to be in good condition, and the degree of damage was set at a maximum of 5-10%.
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