07/2017
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14 M o l d ova Agriculture Bulletin ‘PARE 1+1’ program approves 44 investment projects
Moldovan vineyards to be monitored by drones IFC to provide USD 3.2 million for technical assistance CIS main importers of Moldovan agricultural goods
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Contents State Initiatives ........................................................................................................... 2 1) 2) 3) 4) 5)
Mixed results for EU-bound exports in 2017 .................................................................................. 2 ‘PARE 1+1’ program approves 44 investment projects ................................................................... 2 Access to agricultural finance workshop held ................................................................................. 2 Government approves soil conservation action plan...................................................................... 3 Moldovan dairy sector faces problems in reaching the EU ............................................................. 3
Foreign Aid ................................................................................................................. 4 6) 7) 8) 9)
JICA interested in development project in Moldova ....................................................................... 4 Moldovan vineyards to be monitored by drones ............................................................................ 4 IFC to provide USD 3.2 million for technical assistance .................................................................. 4 IFAD program to support agriculture in Moldova ........................................................................... 5
Private Sector.............................................................................................................. 5 10) Moldovan plums banned in Russian Federation ............................................................................. 5 11) CIS main importers of Moldovan agricultural goods ....................................................................... 5 12) Gross agricultural production down 5% .......................................................................................... 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)
Mixed results for EU-bound exports in 2017
August 1st, 2017, http://infomarket.md/en/agriculture/In_the_first_half_of_2017_Moldova_has_mastered_only_25_of_the_quota_for_the_expo rt_of_apples_to_the_EU_but_more_than_three_times_the_quota_for_the_export_of_processed_wheat
According to a report on the realization of the National Action Plan for the implementation of Moldova’s Association Agreement with the European Union (EU), Moldova has only fulfilled 40% (4,000 tons) of its allocated quota for table grapes and 2.5% (250 tons) of its allocated quota for apples. It should be noted, however, that a significant increase in grain exports to the EU was recorded, with wheat exports amounting to 147,200 tons (196% of its quota), maize at 81,900 tons (63% of its quota), barley at 23,900 tons (34% of its quota), sugar at 20,800 tons (56% of its quota), processed grain at 8,000 tons (321% of its quota) and sugar maize at 200 tons (15% of its quota). At the same time, there has been registered an increase in the import of goods from the EU as part of tariff concessions. 100% of the quota for import of poultry meat from the EU to Moldova has been registered along with 58% of the pork quota, 25% of the sugar quota and 16% of the processed meat quota.
2)
‘PARE 1+1’ program approves 44 investment projects
July 31st, 2017, http://agora.md/stiri/35350/pare-1-1-a-aprobat-finantarea-nerambursabila-pentru-44-de-intreprinderi--vor-ficreate-130-de-locuri-de-munca
The supervisory committee of the ‘PARE 1+1’ program approved financing for 44 more investment projects in 21 regions of Moldova. In total, the investments will amount to MDL 8.42 million. It is expected that the investment projects will create 131 jobs (including 52 for women) and will attract an additional MDL 24.34 million into the economy. Most requests were for business development or startups in the agricultural sector, including in the fields of crop cultivation, animal husbandry, apiculture, the breeding of racing dogs, ostrich farms, mink farms and chinchilla farms. The program operates on the basis of the ‘1+1 rule’, so that each MDL invested in remittances will be supplemented with another one in the form of a grant. For these 44 applications, invested funds will come from Italy (13), Russia (12), Germany (3), the United States (3), Spain (2), the United Kingdom (2), Australia (1), Israel (1), France (1), Malta (1), New Zealand (1), Romania (1), Portugal (1), Sweden (1) and Thailand (1). The ‘PARE 1+1’ program was launched in 2010 and has helped create 1,600 new jobs in Moldova.
3)
Access to agricultural finance workshop held
July 21st, 2017, http://www.maia.gov.md/ro/comunicate-de-presa/optiuni-noi-pentru-garantarea-creditelor-agricultura
The Ministry of Agriculture organized the ‘Access to Finance in the Agricultural Sector’ workshop with the support of the European Neighborhood Program for Agriculture and Rural Development (ENPARD). The aim of the workshop was to explore solutions and good practices that would facilitate access to finance in agriculture in Moldova. In total, more than 75 participants representing financial institutions, farmer associations, donor programs and agricultural projects participated in the workshop.
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At the workshop, the results of the ‘Access to Finance in the Agricultural Sector’ study and the ‘Guarantee Fund for Agriculture and Rural Development’ feasibility study were presented along with views from farmers, donor organizations and financial institutions. After the presentations, a roundtable discussion was held which allowed participants to share their own comments, recommendations and views. At the closing of the workshop, the Ministry of Agriculture reminded participants of opportunities under the new ‘Guarantee Fund for Agriculture and Rural Development’. The Fund provides guarantees for 80% of agricultural loans, helping farmers gain access to cheaper loans. Access to finance in the agricultural sector is one of the most significant obstacles to the development of a productive and competitive sector in Moldova. Most financial institutions currently consider the cost of direct lending to small rural farmers to be prohibitive and risky. The estimated financial shortage in agriculture and food industry is approximately EUR 100 million.
4)
Government approves soil conservation action plan
July 12th, 2017, http://www.maia.gov.md/ro/comunicate-de-presa/la-10-iulie-2017-cadrul-sedintei-de-guvern-fost-aprobatproiectul-de-hotarire
The government has approved an action plan regarding the implementation of the ‘Conservation and Enhancement of Soil Fertility Program 2017-2020’. The purpose of the program is to reduce soil degradation and increase soil fertility by modernizing the system of land improvement as well as implementing modern technologies and environmentally-friendly agricultural practices. The action plan includes four objectives and relevant actions. Scientific institutions will work to improve the technical-scientific basis of land improvement works. An information system on soil quality will also be created and include a digital map for the whole of Moldova. Additionally, works will be planned to stop active topsoil degradation through conservation measures. Work will also begin on increasing the soil fertility of irrigated lands, with special attention given to organic fertilization for green agricultural production.
5)
Moldovan dairy sector faces problems in reaching the EU
July 10th, 2017, http://www.ziarulnational.md/ce-trebuie-sa-faca-r-moldova-pentru-ca-laptele-autohton-sa-ajunga-pe-piataue/
In signing its Association Agreement with the European Union (EU), Moldova agreed to implement approximately 240 European directives and regulations in the sanitary and phytosanitary field by 2020. The approximation of sanitary and phytosanitary legislation is of particular importance for the dairy sector; however, it is expected that food safety rules will be a challenge when it comes to harmonizing internal legislation with European legislation, particularly in implementing them effectively in Moldova’s dairy sector. The current dairy sector situation in Moldova is complex and dynamic. The sector is facing increased competitive pressures in external markets, increased availability of other products domestically, rising production costs and a more sophisticated and better-informed consumer. Moreover, despite the fact that Moldovan producers are not yet able to fully exploit opportunities in the domestic market, Moldovan authorities have already set the goal of obtaining authorization to export dairy products to the EU by 2018. This, however, requires the traceability and safety of the raw material used through an HACCP-based management system which must be audited and certified by external parties. This will prove to be extremely difficult in a largely household dairy industry.
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BFC Agriculture Bulletin
Foreign Aid 6)
JICA interested in development project in Moldova
July 27th, 2017, http://curentul.md/stiri/jica-va-implementa-in-moldova-un-program-de-asistenta-a-intreprinderilor-mici-simijlocii-inclusiv-a-micilor-fermieri.html
The Japanese International Cooperation Agency (JICA) is interested in providing Moldova with technical and financial assistance to support small- and medium-sized enterprises, including small farms. Specifically, they are interested in the modernization of the agricultural sector, enhancing food safety and extending the chain of supply for consumers. The assistance program also aims to identify the competitive advantage of each region and help them develop a regional brand. In discussions with JICA, the Ministry of Economy requested that special attention be given to opening a line of financial support directly to Moldovan entrepreneurs for acquiring the technology and equipment necessary to enhance Moldova’s competitiveness on foreign markets. The Moldovan side also requested assistance in strengthening institutional capacities at national organizations as well as help in funding business incubators and opening district centers. JICA is working closely with the Ministry of Economy to plan all aspects of the project so that implementation can begin in 2018. JICA will make a final decision on the project in October 2017.
7)
Moldovan vineyards to be monitored by drones
July 26th, 2017, http://moldpres.md/en/news/2017/07/26/17005778
The ‘FlaveDor’ project is being launched in Moldova and will monitor vineyards via drones equipped with video cameras, allowing operators to more quickly detect the outbreak of disease and engage in intervention efforts. The project will be applied on four experimental lots and will be expanded to larger areas depending on the results. The risk of grapevine diseases is a major one as diseases spread rapidly, are difficult to treat and can result in crop loss of up to 80%. Over the past five years, vine diseases have affected about 20,000 hectares, or 20%, of all plantations in Moldova. The ‘FlaveDor’ project is being implemented by the National Vine and Wine Office and the Moldova Competitiveness Project. It is being financed by the United States Agency for International Development (USAID) and the government of Sweden.
8)
IFC to provide USD 3.2 million for technical assistance
July 19th, 2017, http://moldpres.md/en/news/2017/07/19/17005614
The International Finance Corporation (IFC) is providing the government of Moldova with USD 3.2 million for technical assistance. The assistance aims to improve the business climate in the agricultural industry and increase the competitiveness of the private sector market in order to enhance exports and investments in Moldova. Consultancy services will be offered in three areas: improving the business environment, strengthening market access (with an emphasis on the agro-industrial sector) and increasing the level of investment protection. According to an agreement between IFC and Moldova, the consultancy will last for a period of three years.
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BFC Agriculture Bulletin
9)
IFAD program to support agriculture in Moldova
July 13th, 2017, http://radiochisinau.md/rmoldova-va-primi-23-7-milioane-de-dolari-de-la-fondul-international-pentrudezvoltare-agricola---53173.html
Parliament has adopted a draft law ratifying a financing agreement with the International Fund for Agricultural Development (IFAD). The financing will come as part of ‘Rural Resilience Program – IFAD VII’. The total budget for the program is USD 23.7 million, USD 5.5 million of which is will be in the form of a grant. The program is aimed at providing long-term accessible financing sources to strengthen resilience to climate changes in agriculture. As such, the program will provide financing for the construction of 24 water supply networks which will help irrigate land for 75 agricultural producers and for the restoration of 12 road segments which will help give greater access to farmers’ production zones and will benefit 50 enterprises and 12 villages. Approximately 420 farmers will receive grants to improve the resilience to climate changes, while 450 micro-enterprises, 150 young entrepreneurs and 20 small- and mediumsized enterprises will receive access to preferential loans. The program will also construct and rehabilitate 30 hectares of reservoirs, 200 hectares of forest belts and 200 hectares of grassland to diminish the effect of soil erosion and reduce the impact of climate change. The program will be implemented over a period of six years by the Consolidated Unit for the Implementation of IFAD Programs in Moldova.
Private Sector 10) Moldovan plums banned in Russian Federation August 3rd, 2017, http://www.trm.md/en/economic/prune-din-republica-moldova-interzise-in-federatia-rusa/
Specialists from the Russia’s Phytosanitary and Veterinary Service Rosselkhoznadzor in the Kursk and Orlov regions have banned the import of 19.7 tons of plums from Moldova. According to Rosselkhoznadzor, larvae of the eastern moth (Grapholitha molesta Busck) were found in the plums. Rosselkhoznadzor added that import was banned in accordance with current plant quarantine legislation and will prevent the spread of pests in the Russian Federation.
11) CIS main importers of Moldovan agricultural goods July 29th, 2017, http://tvrmoldova.md/economic/mold-street-doar-0-4-din-merele-moldovenesti-au-ajuns-pe-piata-ue/
In the first seven months of 2017, the volume of exported fresh fruits from Moldova reached 108,000 tons, including 91,000 tons of apples, 10,000 tons of cherries and 794 tons of strawberries. Vegetable exports have increased to 9,300 tons in the first seven months of the year, including 5,500 tons of onions, 1,300 tons of cabbage, 742 tons of carrots and 700 tons of potatoes. Dry plum exports reached 5,700 tons, while 423 tons of pumpkin seed and 423 tons of tea were also exported in the first seven months of the year. Although progress is being made in exports to the European Union (EU), Commonwealth of Independent States (CIS) countries remain a traditional market for Moldovan fruits and vegetables. For example, apple exports to the EU, while having nearly tripled, only amount to 0.4% of total apple exports from Moldova. Additionally, the Russian Federation imports 90% of Moldova’s onion and carrot exports.
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12) Gross agricultural production down 5% July 27th, 2017, http://infomarket.md/en/agriculture/Agricultural_products_gross_production_in_Moldova_decreased_in_the_first_half_of_20 17_by_5_amounting_to_4_billion_566_million_lei
The gross agricultural production for Moldova in the first half of 2017 declined by 5% year-on-year and amounted to MDL 4.57 billion. The decline was due mostly to a 28.4% reduction in crop production caused by extremely unfavorable weather conditions in the spring of this year. Livestock production also showed a slight decline of 0.4%. Livestock and poultry breeding decreased 0.8% to 81,000 tons. Household livestock and poultry breeding decreased 2.9% to 44,600 tons, while similar products by agricultural enterprises increased by 1.9% to 36,500 tons. The production of cow milk in the first half of 2017 decreased 3.9% to 223,900 tons. Its production in agricultural enterprises increased by 1.1% to 13,200 tons, while its household production dropped 4.2% to 210,700 tons. Egg production increased in the first half of 2017 by 6.6% and amounted to 348.4 million eggs. Household egg production increased 5.4% to 184.5 million eggs, while agricultural enterprises increased production to 163.9 million eggs (an increase of 7.9%). Households account for 94.1% of total milk production, 55% of total livestock and poultry production and 53% of total egg production in Moldova.
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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.