06/2017
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13 M o l d ova Agriculture Bulletin AIPA to be a public, self-governing institution
New USD 23.7 million IFAD project set to begin
‘Summer Berry Fair’ held in Chisinau Fruit producers take study tour to the Netherlands
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Contents State Initiatives ........................................................................................................... 2 1) 2) 3)
AIPA to be a public, self-governing institution ................................................................................ 2 Call for revamped agricultural subsidy mechanisms ....................................................................... 2 Sanitary-veterinary restrictions lifted in Edinet .............................................................................. 3
Foreign Aid ................................................................................................................. 3 4) 5) 6) 7)
EBRD supporting Moldovan wine’s global recognition ................................................................... 3 New USD 23.7 million IFAD project set to begin ............................................................................. 3 World Bank approves Climate Adaption Project funding................................................................ 4 New Czech project to support organic agriculture.......................................................................... 4
Private Sector.............................................................................................................. 5 8) 9) 10) 11) 12) 13) 14)
Agricultural goods to Russia can clear at any customs post ........................................................... 5 ‘Summer Berry Fair’ held in Chisinau .............................................................................................. 5 Moldovan businessmen abroad to help agricultural sector............................................................ 5 Lolly Berry to grow berries in tunnels ............................................................................................. 5 Fruit producers take study tour to the Netherlands ....................................................................... 6 Conservation agriculture in Moldova .............................................................................................. 6 Russia’s Rosselkhoznadzor inspects Moldovan farms ..................................................................... 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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BFC Agriculture Bulletin
State Initiatives 1)
AIPA to be a public, self-governing institution
June 26th, 2017, http://infomarket.md/en/agriculture/Moldovan_Agency_for_Interventions_and_Payments_in_Agriculture_of_was_reorganized _into_a_public_self-governing_institution_
Parliament recently approved the Law on the Principles for Subsidizing Agricultural Producers. Part of the provisions of the law will reorganize the Agency for Interventions and Payments in Agriculture (AIPA) as a public, self-governing institution under the Ministry of Agriculture that is responsible for the effective management of the National Fund for Agricultural and Rural Development as well as funds received from development partners. Until now, AIPA has been an administrative body under the Ministry of Agriculture and has been responsible for managing the financial resources intended to support agricultural producers, monitoring the allocation of funds and assessing the impact of the support measures for agrarians. It is believed that the reorganization will help the agency be able to attract more funding. Financing of AIPA will come from the National Fund for Agricultural and Rural Development, funds from external assistance programs, donors and other legal sources. AIPA will be required to provide full monthly public reports on management of the funds allocated from the National Fund for Agricultural and Rural Development, including lists of applicants, lists of grant recipients, any violations of terms and the amount of subsidies used in implementing investment projects.
2)
Call for revamped agricultural subsidy mechanisms
June 20th, 2017, http://www.realitatea.md/cine-inghite-cele-mai-multe-subven-ii-din-agricultura-expert-este-nevoie-deimbunata-irea-mecanismelor-de-acordare-a-banilor_59585.html
Viorel Chivriga, director of the development and social initiative institute ‘Viitorul’, appeared on the television program ’15 minutes of Economic Realism’ to discuss agricultural subsidies in Moldova. While noting the positive changes visible in the Agency for Interventions and Payments in Agriculture’s (AIPA) work, especially in ensuring transparency, informing stakeholders and disseminating positive practices, Chivriga pointed out that a number of problems still need to be resolved. For example, the regulation on the application of the Law on Subsidies to Agricultural Producers, although approved, did not enter into force and was not published in the Official Gazette in 2017 as well as in previous years. And while the number of beneficiaries (4,321) in 2016 was higher than in 2015, it was lower than the 5,133 in 2014 and the 4,457 in 2012. Moreover, most subsidy beneficiaries (74%) represent just three professional agricultural organizations. This, Chivriga argues, shows that the law is only good on paper and that many of the 13 sub-measures are ineffective. Furthermore, the number of rejected files is on the rise. In 2016, AIPA rejected 224 files worth MDL 52,589,400, representing 7.5% of the total allocated amount. In order to improve the subsidy mechanism, Chivriga recommends a quantitative and qualitative assessment of the impact of the subsidy on agro-food sector development, which includes using a wide spectrum of indicators to illustrate the real effect of financial support from the state such as increased productivity/volume, increased turnover, increased value of exported production, new jobs created and increased production quality. Chivriga argues that the best way to increase productivity and competitiveness in agriculture as well as stabilize the market and ensure food security and a fair income for farmers is to grant direct payments to farmers which are dependent on both crop and animal species produced as well as the average individual yield and the actual area sown/number of animals raised.
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3)
Sanitary-veterinary restrictions lifted in Edinet
June 9th, 2017, http://www.realitatea.md/ansa-a-dispus-ridicarea-restric-iei-sanitar-veterinare-in-raionul-edinet-ultimul-focarde-pesta-porcina-africana-a-fost-lichidat_59052.html
The deputy director of the National Food Safety Agency has ordered that the sanitary-veterinary restriction imposed on Bratuseni (Edinet region) be lifted. The restrictions were introduced following the outbreak of African swine flu in the region. As soon as the outbreak was discovered, authorities immediately began a program of daily monitoring of animals in the restricted area as well as the disinfection of the area and the placement of sanitary stations and filters at the entrances and exits of the area.
Foreign Aid 4)
EBRD supporting Moldovan wine’s global recognition
July 3rd, 2017, http://www.ebrd.com/news/2017/moldovan-wine-for-the-european-market.html
Moldova boasts a rich and proud 4,000-year old tradition of wine making; yet, Moldovan wine was largely unknown outside of eastern European circles. In an effort to expand markets, many Moldovan wineries have turned to the European Bank for Reconstruction and Development (EBRD) for help. The EBRD has supported the wine industry through various advisory projects which give guidance on marketing, energy savings and the importance of international certifications. EBRD has also organized training sessions, improved links between suppliers and buyers and has even organized a study tour to Poland in order to increase Moldovan wineries’ understanding of retail in advanced markets, especially in regards to post-harvest handling and packaging standards. The efforts of EBRD in supporting Moldovan wine are starting to pay off, especially following Moldova’s entrance into a free trade agreement with the European Union (EU). Moldovan wineries have started winning over EU consumers and have recently become more competitive globally, entering United States, Canadian, Chinese and Japanese markets. Moldovan wine is also establishing itself as a dominate presence at many international competitions and wine clubs. The EBRD supports companies in Georgia, Moldova and Ukraine to trade with the EU in many ways, including through EUR 380 million in credit lines and trade finance for partner banks to help small- and medium-sized enterprises modernize and raise their products and practices to EU standards. There are also direct financing and advisory services available through the EU4Business initiative to help Moldovan businesses grow.
5)
New USD 23.7 million IFAD project set to begin
June 12th, 2017, http://www.maia.gov.md/ro/comunicate-de-presa/moldova-va-investi-237-mln-de-dolari-sua-agricultura-sidezvoltare-rurala
The International Fund for Agricultural Development (IFAD) will provide USD 23.7 million, including USD 5.5 million as grants, for the implementation of ‘Rural Resilience Project - IFAD VII’. The project aims to provide an affordable and long-term source of financing for enhancing resilience to climate change in agriculture. The project plans to aid in this effort through the construction of 24 irrigation water supply networks (affecting 75 agricultural producers) and the rehabilitation of 12 segments of roads (affecting 50 enterprises and more than 1,200 families from 12 villages). Grants will be given to about 420 farmers for improving resilience to climate change efforts, and more than 450 micro-entrepreneurs, 150 young entrepreneurs and at least 20 small and medium-sized businesses will benefit from preferential credit. Page 3
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The project will also finance the construction and rehabilitation of rainwater accumulation lakes with an area of more than 30 hectares and plant/rehabilitate 200 hectares of forest strips and 200 hectares of grasslands in an effort to reduce the soil erosion. The project will last for six years. It will be managed by the Consolidated Unit for Implementation of the IFAD program in Moldova.
6)
World Bank approves Climate Adaption Project funding
June 9th, 2017, http://www.worldbank.org/en/news/press-release/2017/06/09/moldova-to-enhance-climate-adaptationcapacity-with-world-bank-support
The World Bank has approved USD 27.2 million in financing to Moldova for the Climate Adaptation Project. The Climate Adaptation Project will work to reduce the vulnerability of rural households to the impacts of climate change and enhance the capacity of government institutions, key stakeholders, communities and the public to manage climate change risks. The project will also support the Moldovan Government Action Plan for the Implementation of the Climate Change Adaptation Strategy to 2020. The key objectives of the Climate Adaptation Project are to scale up farmers’ use of climate-smart technologies and agricultural practices, expand the up-take of irrigation services, restore degraded lands at the community and village level, improve climate-smart management of forest reproductive material and strengthen Moldova’s climate and disaster risk management systems. Since Moldova joined the World Bank Group in 1992, over USD 1 billion has been allocated to approximately 60 projects in the country. Currently, the World Bank portfolio in Moldova includes 8 active projects, with a total commitment of USD 333.3 million.
7)
New Czech project to support organic agriculture
June 9th, 2017, http://www.maia.gov.md/ro/comunicate-de-presa/s-lansat-proiectul-suport-institutional-sectorul-agriculturiiecologice-din
The ‘Institutional Support for the Organic Farming Sector of Moldova’ project was launched on June 8, 2017. The four-year project will increase the transparency and credibility of state institutions in the field of organic farming within Moldova, especially through exploring long-term opportunities for solutions to supply and demand challenges. The project will contribute to Moldova meeting the objectives set out in the National Agricultural and Rural Development Strategy for 2014-2020 and will likely lead to more partnership opportunities and the greater mobilization of stakeholders. As part of this effort, the project will work to adjust the existing legislative framework in ways which ensure the development of the organic sector and will also work to create stability and security for organic farmers as the legislative framework is transitioned. The ‘Institutional Support for the Organic Farming Sector of Moldova’ project is being financed by the Czech Development Agency and will be implemented by the Central Institute for Surveillance and Testing in Agriculture in the Czech Republic.
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Private Sector 8)
Agricultural goods to Russia can clear at any customs post
July 4th, 2017, http://moldpres.md/en/news/2017/07/04/17005137
Exporters of fruits and vegetables from Moldova to Russia may now apply for customs clearance at any Russian customs post authorized to clear goods. The decision to cancel limitations on customs clearances was communicated to the Moldovan Customs Service via a letter sent by the Federal Service of the Russian Federation following a meeting between Moldovan and Russian customs directors.
9)
‘Summer Berry Fair’ held in Chisinau
July 3rd, 2017, http://moldovanews.md/03072017/economika/155359.htm
Moldovan berry producers and lovers of fresh fruit products were brought together at the ‘Summer Berry Fair’ in Chisinau. The fair is part of an organized effort to turn Moldovan-grown berries into a national brand and encourage buyers to buy domestically. The quality of the berries presented at the fair was confirmed by certificates of food safety, and berry growers which participated in the fair were also given trainings on the correct packaging of perishable goods. In 2015, berries were grown on 3,000 hectares of land, with 83% of the harvested berries being sold in the domestic market.
10) Moldovan businessmen abroad to help agricultural sector June 29th, 2017, http://tvrmoldova.md/economic/video-oamenii-de-afacere-din-diaspora-vor-sustine-fermierii-din-republicamoldova-prin-intermediul-unui-acord-de-colaborare/
A cooperation agreement has been signed between the Association of Moldovan Businessmen Abroad and the National Federation of Moldovan Farmers. The purpose of the agreement is to help small- and medium-sized entrepreneurs develop the agricultural sector and enter international markets more easily through the creation of favorable conditions for the development of competitive agriculture. The cooperation agreement was accompanied by the launch of the Microfinance Cooperative of Agricultural Producers, which is committed to providing agricultural advice and technical assistance to all agricultural producers in Moldova.
11) Lolly Berry to grow berries in tunnels June 27th, 2017, http://mybusiness.md/ru/novosti-biznesa/item/5903-lolly-berry-budet-vyrashchivat-yagody-v-tonnelyakh
The director of Lolly Berry and innovator in the Moldovan berry market, Iurie Tara, recently visited the Krasnodar district of Russia to learn about growing berries in tunnels. Mr. Tara was impressed by the quality of berries able to be grown in tunnels and plans on installing tunnels on 1 hectare of Lolly Berry land. Tunnels allow for the environmental conditions (mainly temperature and humidity) in which plants grow to be controlled for optimal output. Moreover, the microclimate within the tunnels greatly reduces the risk of fungal diseases, decreasing the need to use fungicides and saving producers financial resources
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12) Fruit producers take study tour to the Netherlands June 26th, 2017, http://www.trm.md/en/economic/agricultori-de-pe-ambele-maluri-ale-nistrului-in-vizita-de-studiu-in-olanda/
Members of Moldova Fruct Association and Dnestrovskii Fruct participated in a study tour to the Netherlands to learn from the practical experience of Dutch farmers. In total, 21 fruit producers visited Dutch companies along the entire fruit value chain, from nurseries for fruit planting material and superintensive orchards to fruit storage refrigerators and packing houses. The tour provided an opportunity for direct communication between Moldovan fruit producers with fruit producers and suppliers of technologies and equipment from the Netherlands.
13) Conservation agriculture in Moldova June 23rd, 2017, http://www.timpul.md/articol/o-ansa-pentru-agricultura-din-republica-moldova-111431.html
While many farmers in Moldova are hoping for rain in order to ensure a rich harvest, some are turning to other, innovative agricultural methods which are not as dependent on climatic conditions. One such system Moldovan farmers are starting to turn to is conservation agriculture, an agricultural method characterized by minimal soil disruption. In conservation agriculture, land is not tilled; rather, seeds are planted with the help of special seed drills. This method does not dry the soil or destroy microorganisms on the surface which later contribute to plant development, leading to richer harvests – even in the face of adverse weather conditions such as the heavy snow in April and the low rainfall in May. Additionally, conservation agriculture only requires the use of approximately 15 liters of diesel per hectare instead of nearly twice that amount with traditional agriculture, although conservation agriculture generally does require the introduction of more fertilizers and pesticides. In Moldova, conservation agriculture is suitable for all types of crops grown except sugar beets, and it is believed that farmers will increasingly start using this method since it is both more ecological and more profitable. This will help lead to greater food security in the country as agriculture will be less impacted by climate changes due to increased soil preservation and fertility. Conservation agriculture has been successfully used in many countries around the world, including Romania and Poland.
14) Russia’s Rosselkhoznadzor inspects Moldovan farms June 20th, 2017, https://ru.sputnik.md/economics/20170620/13210629/ehksperty-rosselhoznadzora-primut-vazhnoe-resheniedlya-fermerov-moldovy.html
A group of experts from Rosselkhoznadzor, Russia’s Federal Service for Veterinary and Phytosanitary Veterinary Surveillance, spent a week inspecting the nurseries of 25 farms in different regions of Moldova. Farms that pass the inspection are considered as having met Russian standards and requirements for growing grafted trees and grape cutting and will be granted export rights into the Russian Federation. Another group of Rosselkhoznadzor experts is expected in the near future to inspect plant growth processes at farms which intend to export fruit, grapes and vegetables into the Russian Federation.
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