09/2017
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16 M o l d ova Agriculture Bulletin Moldova to host 2018 Global Wine Tourism Conference
Grants for organic farming organizations MDL 6.5 million for 20 Moldovan agricultural producers Moldovan fruit exports to the EU up 40%
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Contents State Initiatives ........................................................................................................... 2 1) 2) 3) 4) 5) 6)
Wine Branch program not effectively monitored ........................................................................... 2 Joint Moldovan-Romanian agricultural project launched ............................................................... 2 2,200 subsidy applications received for MDL 302 million ............................................................... 3 Agriculture Minister meets with Italian Ambassador ..................................................................... 3 Moldova to host 2018 Global Wine Tourism Conference ............................................................... 3 11 new anti-hail rocket points installed in Moldova ....................................................................... 4
Foreign Aid ................................................................................................................. 4 7) 8) 9) 10) 11)
FAO project helps Moldova strengthen dairy cow breeding .......................................................... 4 Agriculture Minister meets with Japanese Ambassador ................................................................. 4 Grants for organic farming organizations........................................................................................ 5 IFC to support agricultural sector in Moldova ................................................................................. 5 MDL 6.5 million for 20 Moldovan agricultural producers ............................................................... 5
Private Sector.............................................................................................................. 6 12) Moldovan fruit exports to the EU up 40% ....................................................................................... 6 13) Farmer frustration with subsidy process growing ........................................................................... 6 14) 2017 harvest yielding more than 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)
Wine Branch program not effectively monitored
October 3rd, 2017, http://agrobiznes.md/cc-abateri-in-cadrul-programului-filiera-vinului-ministerul-agriculturii-n-a-asigurat-omonitorizare-eficienta.html
The Court of Auditors' audit report on the effectiveness of the Wine Branch program states that the Ministry of Agriculture did not ensure sufficient monitoring of the program, which led to inefficiency in the funding some program components. Specifically, the audit revealed that equipment worth EUR 200,000 bought from program funds has not been used for more than one and a half years. Additionally, the late launch of the leasing program limited access to credit for potential beneficiaries. Also, the guarantee of repayment of the loan was not fully ensured by the Ministry of Finance, which has led to old equipment being accepted as collateral (in the amount of EUR 1.5 million). The restructuring program for the wine and wine sector was launched in 2010. Its financing, amounting to 75 million euros, was provided by the European Investment Bank (EIB). The financing was offered for a term 12 years with a 3% annual interest and up to 4-year grace period. The program included credit line, financial leasing, food security development and education and training components. In total, 37 companies were beneficiaries of the program, and the funding was provided through four banks (Mobiasbanca-Groupe Societe Generale, ProCredit Bank, Energbank and Bank Commerce).
2)
Joint Moldovan-Romanian agricultural project launched
September 29th, 2017, http://unimedia.info/stiri/alexei-repede--aoamp-continuam-actiunile-de-relansare-a-agriculturii-dintara--am-lansat-oficial-proiectul-parteneriat-pentru-dezvoltarea-durabila-a-mediului-rural-din-romania-si-moldova140201.html
The Association of Moldovan Businessmen Abroad, the National Federation PRO AGRO (Romania) and the National Federation of Farmers in Moldova have worked together to launch the ‘Partnership for the Sustainable Development of the Rural Environment of Romania and the Republic of Moldova’ project. The project aims to:
• • • • • • •
Promote cross-border farmer cooperation Capitalize on investment opportunities Stimulate the agricultural sector to identify common projects and solutions Ensure cross-border promotion of good practices Promote indigenous agricultural products Facilitate access to European markets Increase agricultural research, development and innovation
In November, the project will host a cross-border agricultural forum in Chisinau. During the event, approximately 100 farmers from Romania and Moldova and representatives of the Romanian and Moldovan authorities will jointly address the challenges of the agro-food sector. Participants will work to define the most important issues for each agricultural sector and identify feasible solutions for diminishing them through concrete short- and medium-term actions and objectives. The project has also developed a joint platform for the promotion and cooperation of farmers in Moldova and Romania.
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3)
2,200 subsidy applications received for MDL 302 million
September 28th, 2017, http://www.aipa.gov.md/ro/content/comunicat-privind-derularea-campaniei-de-subven%C8%9Bionare%E2%80%93-2017-la-280917
Between June 27 and September 28, 2017, the Agency for Interventions and Payments in Agriculture (AIPA) received 2,200 applications from farmers for subsidies, representing MDL 302 million. The largest amount of funds was requested to stimulate investments for the purchase of machinery and equipment (889 applications for MDL 83 million), 477 applications of which have been approved for MDL 39.6 million. So far, approximately 700 applications have been approved, and MDL 67 million in subsidies has been paid out. The total amount of the subsidy fund is MDL 532 million for 2017. 2017 will also be the first year when the state will not have debts on subsidy payments.
4)
Agriculture Minister meets with Italian Ambassador
September 27th, 2017, http://www.madrm.gov.md/ro/content/republica-moldova-%C8%99i-italia-%C3%AE%C8%99iintensific%C4%83-cooperarea-%C3%AEn-domeniul-agriculturii
Agriculture Minister Vasile Bitca met with Italian Ambassador Valeria Biagiotti to discuss new opportunities and joint development projects in the field of agriculture. Ambassador Biagiotti expressed a readiness to identify new opportunities for cooperation within the field of agriculture as well as to support Moldova in further cooperation with the European Union (EU). The Ambassador noted that, in November of this year, specialists from Moldova will participate in a training course in the field of biological agriculture. In his part, Agriculture Minister Bitca thanked the Ambassador for Italian support in the development of the agro-industrial sector. He stated that the support offered has served as an impetus for Moldova to develop its agricultural sector and better state policies in this direction. At the meeting, the two sides also discussed cooperation regarding education and scientific research in agriculture, with specific reference given to collaboration between the State Agricultural University of Moldova (UASM) and higher education institutions and agricultural enterprises in Italy. USAM has already benefitted from grants, and academic staff from the institution regularly participate in international scientific conferences and undertake internships at institutions in Italy. The parties also identified a list of priority initiatives for future cooperation.
5)
Moldova to host 2018 Global Wine Tourism Conference
September 26th, 2017, http://moldpres.md/en/news/2017/09/26/17007397
In 2018, Moldova will host the Global Wine Tourism Conference. Moldova was selected by the Regional Committee for Europe of the World Tourism Organization (WTO) to host the conference over Spain and South Africa. This effectively means that Moldova is the World Capital of Wine Tourism in 2018 and should receive a boost in the country’s image as a tourist destination. In total, between 250 and 300 participants from more than 70 countries are expected to attend the conference. Transportation and accommodation costs will be covered by participants as Moldova will only bear internal and organizational expenses. This will be the third instance of the conference and is Moldova’s first time hosting
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6)
11 new anti-hail rocket points installed in Moldova
September 19th, 2017, http://madrm.gov.md/ro/content/ministerul-agriculturii
The Ministry of Agriculture has installed 11 anti-hail rocket points in southern Moldova (Leca, Haragiş, Baimaclia, Cirpeşti, Zirnesti, Gotesti, Huluboaea, Moscow, Andrusul de Sus, Larga Noua, Congazcic de Sus in Cantemir). Deputy Agriculture Minister Iurie Usurelu stressed that agriculture is a particularly risky activity, often subject to the whims of natural weather events and threatening to agricultural income, food security, development capacity and investments. According to specialists, the efficiency of annual anti-hail efforts shows an effect of 85-90% success in the last 10 years, meaning that the application of anti-hail rocket method has effectively helped to combat hailstorms. The placement of the 11 rocket points increases the protected area to 149,000 hectares. The total cost for the 11 rocket points, MDL 7,316,600, was allocated from the state budget.
Foreign Aid 7)
FAO project helps Moldova strengthen dairy cow breeding
September 27th, 2017, http://www.madrm.gov.md/ro/content/moldova-%C3%AE%
Moldova has developed, with the support of a Food and Agriculture Organization of the United Nations (FAO) project, a national strategic program aimed at monitoring and improving the genetic quality of livestock, with particular emphasis on the genetic improvement of dairy cows. The ‘Developing a National Strategy and Action Plan for Animal Genetic Resources and the Genetic Improvement Program of Milk Cows’ project also helped train 50 artificial sowing operators and equip them with performance kits. The project also helped set up a milk analysis laboratory at the State Agricultural University of Moldova (UASM). The project focused on the experience of the European Union states and will allow dairy cow breeders to concentrate on multiplying the most productive specimens and increase their production, efficiency and profitability. Since the introduction of the market economy in the early 1990s, cattle production in Moldova has been largely left to family farms, which had limited knowledge and capacities to raise and multiply cattle. This led to the number of dairy cows in Moldova dropping from almost one million in the early 1990s to less than 200,000 in 2013. The ‘Developing a National Strategy and Action Plan for Animal Genetic Resources and the Genetic Improvement Program of Milk Cows’ project was launched in 2015, with the FAO contributing EUR 320,000 for its implementation.
8)
Agriculture Minister meets with Japanese Ambassador
September 22nd, 2017, http://www.madrm.gov.md/ro/content/japonia-va-oferi
Agriculture Minister Vasile Bitca met with Japanese Ambassador Masanobu Yoshii to discuss a project of conservative agriculture development in Moldova. If approved, the project would include a USD 4.8 million grant from Japan, which would be allocated under the ‘Grant Program for Social and Economic Development’. Minister Bitca noted that the ‘Conservative Agriculture: Development of a Sustainable Soil Management System in Moldova’ project, launched this year with Japan's support, has been of particular importance for Moldova.
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In his turn, the Ambassador noted that Japanese investors would like to develop further cooperation with Moldova, especially in the fields of agriculture and health. The Ambassador also stated Japan’s interest in helping increase the imports of wheat and wine from Moldova through the initiation of joint projects. Currently, Moldova and the government of Japan are implementing 4 agricultural projects in Moldova, with total funding amounting to approximately USD 65 million.
9)
Grants for organic farming organizations
September 20th, 2017, http://www.trm.md/en/economic/granturi-pentru-gospodarii-agricole-ecologice/
The Czech non-governmental organization People in Need (PIN) has announced a grant contest open to agricultural producers, associations and cooperatives as well as groups of farmers involved in organic farming. Applicants must have organic certification or be in the conversion process. Grants will not exceed USD 4,000. The contest is intended for those who aim to: create a sales point for ecological products, build a storehouse for fruit/vegetables (not building activities) or develop any other innovative idea in organic farming. Grants are not intended to be used for production activities, salaries, rent, taxes or utility payments. Additionally, grant money is not to be used for pharmaceutical preparations, fertilizers or any other thing that might have a negative impact on the environment or human health. Beneficiaries will be chosen taking into account the size of the applicant’s financial contribution, clarity of the project proposal, projected economic benefits and the human resources able to implement the project. Priority will be given to producers from the horticultural sector and members of the ‘Moldova’s Berries’ Association.
10) IFC to support agricultural sector in Moldova September 19th, 2017, http://www.madrm.gov.md/ro/content/sectorul-agricol-va-beneficia-de-sus%C8%9Binereacorpora%C8%9Biei-financiare-interna%C8%9Bionale
The Cabinet of Ministers approved the ratification of a consultancy agreement between the Republic of Moldova and the International Finance Corporation (IFC), which aims at improving the business climate in the agricultural industry. Under the agreement, IFC will provide consulting services to Moldova for improving business environments, strengthening access to markets, improving the agro-industrial sector and increasing investment protection. As such, support efforts will focus mainly on administrative and institutional frameworks, analyzing and reviewing legislative and regulatory frameworks and providing assistance in policy document and development strategy elaboration. IFC will provide Moldova with technical assistance amounting to USD 3.2 million, with Moldova contributing an additional USD 260,000.
11) MDL 6.5 million for 20 Moldovan agricultural producers September 5th, 2017, http://www.trm.md/en/economic/6-5-milioane-de-lei-pentru-producatorii-agricoli-din-moldova/
20 Moldovan farmers will receive a total of MDL 6.5 million to cover 50% of the cost of investments made for the purchase of no-till seeders, sprinklers and shredders. The compensation is a result of the sixth call for grant applications under the post-investment program for sustainable land management by Page 5
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the Competitive Agriculture Project in Moldova. Eight agricultural producers were selected from the northern part of Moldova; six were selected from the southern part; and six were selected from the central part of the country. The post-investment grant program was launched in 2017 and is funded by the World Bank, the Swedish government, the Global Environment Facility and the government of the Republic of Moldova.
Private Sector 12) Moldovan fruit exports to the EU up 40% October 4th, 2017, http://en.publika.md/moldova-s-fruit-export-to-europe-grew-by-40-in-2017_2640685.html
This year’s exports of plums from Moldova to Europe increased by 40% when compared to 2016, with Poland importing the largest quantity (over 4,000 tons). Romania also imported around 4,000 tons, and Latvia imported 600 tons. In total, 10,400 tons of Moldovan fruit reached European Union (EU) markets in ten countries. This represents 400 tons more than last year. At the same time, fruit exports to Russia decreased to 18,415 tons this year, 9,000 tons less than in 2016. This was the first year Moldova exported both fresh and dried plums to Canada, Iraq and the United States.
13) Farmer frustration with subsidy process growing September 27th, 2017, http://jurnaltv.md/ro/news/2017/9/27/au-achitat-8-din-fondul-de-subventii-10302439/#1
Many farmers are feeling frustration with the state over, what they perceive to be, the lack of state support for agriculture. This frustration stems from the slow pace at which subsidies are being distributed. According to data from the Agency for Intervention and Payment for Agriculture (AIPA), only 8% of the total amount of subsidies promised by authorities has been paid out three months into collecting subsidy applications. Many farmers are complaining about the excessive bureaucracy of the process, believing that everything is done so as to provide as little money as possible. Another issue is farmers’ obligation to attend courses in order to receive subsidies. AIPA Director Nicolae Ciubuc stated that, this year, subsidies are given in accordance with new legislation, meaning a new process for everyone. He denied that the procedure is excessively bureaucratic and said that the consultancy courses that farmers must follow are provided for in agreements with external development partners. The last four years have been difficult for farmers due to natural disasters, and the state's financial support is important for many farmers to continue their businesses. According to statistical data, only 12% of farmers have received subsidies this year.
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14) 2017 harvest yielding more than 2016 September 26th, 2017, https://ru.publika.md/nyneshniy-god-vydalsya-bolee-urozhaynym-chem-proshlyy_2135512.html
This year’s harvest is proving to be more fruitful than last year’s. The corn harvest is yielding 4.5 tons per hectare, 1.5 tons more than last year; sunflowers are being harvested at an average of 2 tons per hectare, 300 kilograms more than in 2016; sugar beet production is 32.5 tons per hectare, 3 tons more than last year; and soybeans have a yield of 1.5 tons per hectare, 400 kilograms higher than in 2016. The wheat harvest is also strong, averaging 4 tons per hectare and 700 kilograms more than last year. The average barley yield is up by 400 kilograms per hectare, amounting to 3.5 tons per hectare.
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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.