02/2017
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9 M o l d ova Agriculture Bulletin National Agriculture and Rural Development Fund established New problems with exporting Moldovan meat to Russia New project to build capacity and skills at APIA Moldova’s top 2016 export: unprocessed agriculture
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Contents State Initiatives ........................................................................................................... 2 1) 2) 3) 4) 5) 6)
National Agriculture and Rural Development Fund established ..................................................... 2 Preliminary list for 2016 frost damages completed ........................................................................ 2 Talks to intensify collaboration with Belarus .................................................................................. 2 Simplified exports for Moldovan seeds and seedlings .................................................................... 3 Talks to increase bilateral cooperation with Lithuania ................................................................... 3 New problems with exporting Moldovan meat to Russia ............................................................... 3
Foreign Aid ................................................................................................................. 4 7) 8) 9) 10) 11)
New project to build capacity and skills at APIA ............................................................................. 4 New USAID project to support agricultural development .............................................................. 4 Japan providing a grant for agriculture conservation ..................................................................... 4 FAO project to improve the quality of dairy cows .......................................................................... 4 Moldova receives new food safety control equipment .................................................................. 5
Private Sector.............................................................................................................. 5 12) 13) 14) 15)
Moldova’s top 2016 export: unprocessed agriculture .................................................................... 5 Grants available for Moldovan berry producers ............................................................................. 6 Fruit producers take part in international exhibition ...................................................................... 6 New Moldova Agroindbank loan product to help farmers ............................................................. 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)
National Agriculture and Rural Development Fund established
March 3rd, 2017, http://infomarket.md/en/agriculture/The_National_Agriculture_and_Rural_Development_Fund_to_be_established_and_divert ed_to_at_least_2_of_the_State_budget_revenue_/
Parliament has adopted a law on the principles of subsidizing agricultural producers. The law aims to encourage the modernization of the agroindustrial complex and rural areas by enhancing their competitiveness, modernizing markets, ensuring the sustainable management of natural resources and raising living standards in rural areas. The law also establishes the National Agriculture and Rural Development Fund, which will consist of at least 2% of the state budget revenue. The Fund will subsidize investments consistent with the goals and measures of the National Agriculture and Rural Development Strategy and will be distributed as decided by branch bodies and coordinated with agricultural producer associations. Half of the Fund will be paid out directly to agricultural producers and will depend on the area they cultivate as well as either the varieties of crops they grow or the number of cattle they raise. Subsidies will not exceed 50% of the investment made and will be provided once a year only. A maximum amount available will be determined by the central administrative authorities on the base of strategic priorities of the agricultural sector, with this ceiling able to be raised by 15% to 20% for young farmers, female farmers, producer associations, and investors in organic production or projects being implemented in an unfriendly environment. In addition, young farmers and start-up companies can request up to 50% of the investment amount in advance upon meeting specified conditions.
2)
Preliminary list for 2016 frost damages completed
March 1st, 2017, http://agrobiznes.md/filip-despre-compensatiile-pentru-ingheturi-procesul-a-fost-tergiversat-din-cauzafermierilor-necinstiti.html
Speaking at a meeting of the government, Prime Minister Pavel Filip brought attention to the topic of agricultural losses due to natural disasters in 2016, stating that the government will pay all due compensation based on clear and true assessments. The preliminary lists of those affected by frosts and to what degree they were affected have been completed, and the government has now turned its attention to preparing the specific conditions of a regulation which will provide for the partial compensation of damages. The Prime Minster noted that the creation of the list was delayed due to claims submitted by those seeking compensation that were unable to provide information about annual crop production or those who had not paid state taxes. The Prime Minister also called for the list of beneficiaries to be published to help ensure only legitimate claims are paid and asked that the payment process for approved compensation be sped up once the list is finalized and the appropriate regulation has passed.
3)
Talks to intensify collaboration with Belarus
February 24th, 2017, http://www.maia.gov.md/ro/comunicate-de-presa/colaborari-mai-intense-intre-moldova-si-belarus
Minister of Agriculture Eduard Grama met with Belarusian Ambassador Serghei Chichuk to discuss agricultural cooperation and experience exchanges between Moldova and Belarus, highlighting the desire of both to intensify cooperation in seed production and biotechnology. Minister Grama also expressed interest in working with Belarus to expand cooperation efforts between the two countries in Page 2
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other sectors, specifically in increasing wine exports from Moldova. For his part, Ambassador Chichuk invited Minister Grama to participate in the ‘Belagro 2017’ exhibition organized by the Ministry of Agriculture of Belarus and the National Academy of Sciences of Belarus. The trade turnover of agricultural products between Moldova and Belarus in 2016 amounted to USD 71.3 million, a year-on-year decrease of 39.6% (USD 46.7 million).
4)
Simplified exports for Moldovan seeds and seedlings
February 23rd, 2017, http://agrobiznes.md/export-simplificat-de-seminte-si-material-saditor-pentru-culturi-legumicole.html
The export of seeds and seedlings to European Union (EU) members and other countries will be simplified with the adoption of new amendments which will implement European rules and requirements for seed and seedling production. Agriculture Minister Eduard Grama noted that the changes were developed in order to harmonize national legislation with European norms and were based on recommendations from the director general of the European Commission on Health and Food Safety. According to Minister Grama, the changes will enhance the production and sale of seeds and seedlings as well as give greater access for Moldovan entrepreneurs to European markets.
5)
Talks to increase bilateral cooperation with Lithuania
February 13th, 2017, http://www.maia.gov.md/ro/comunicate-de-presa/fortificarea-relatiilor-moldo-lituaniene-temadiscutata-cadrul-intrevederii
Agriculture Minister Eduard Grama met with Rolandas Taraskevicius, Lithuania’s Deputy Minister of Agriculture, to discuss the implementation of mutual projects, increasing bilateral cooperation and cooperating in the context of European integration. At the meeting, Minister Grama proposed continued cooperation through an inter-Ministry action plan for 2017-2019 which includes: boosting bilateral agricultural trade, support in implementing European regulations and standards for animal products and veterinary products of plant origin, continued cooperation in livestock, an experience exchange between the payment agencies of both countries, and cooperation under the ‘Twinning’ project for food safety. Deputy Minister Taraskevicius expressed Lithuania’s willingness to support Moldova and identify opportunities to attract European Union (EU) funds for implementing new projects. The Deputy Minister also extended an invitation to Minister Grama to Lithuania for continued discussions.
6)
New problems with exporting Moldovan meat to Russia
February 11th, 2017, http://www.trm.md/en/economic/noi-probleme-la-exportul-de-produse-moldovenesti-in-rusia/
Rosselkhoznadzor, the Russian veterinary and phytosanitary authority, announced the suspension of the certification of five of eight exporters of Moldovan meat due to the fact that they had not exported any production to the Russian Federation since August 2014, resulting in Rosselkhoznadzor being unable to perform veterinary checks on their production. The five companies were included as part of a ban on imports into the Russian Federation in August 2014 following Moldova’s signing of an association agreement with the European Union (EU). It is unknown when or if Russian experts will be able to undertake inspections of the Moldovan meat producers to lift the restrictions.
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Foreign Aid 7)
New project to build capacity and skills at APIA
February 23rd, 2017, http://www.maia.gov.md/ro/comunicate-de-presa/primul-twinning-din-domeniul-subventionarii-fostlansat
A new project was launched to build capacity and skills at Moldova’s Agency for Payments and Intervention in Agriculture (APIA). The project will target institutional harmonization (agency structure, tasks, functions, strategies, IT and human resources), helping modernize the agency’s services and train agency employees. The project will also bring rural development efforts in Moldova more in line with European Union (EU) norms and standards. The two-year project is being funded by the EU through a EUR 1.2 million grant.
8)
New USAID project to support agricultural development
February 22nd, 2017, http://www.maia.gov.md/ro/comunicate-de-presa/un-nou-proiect-va-dezvolta-sectorul-agricol-privat
The United States Agency for International Development (USAID) is funding a five-year, USD 21 million project aimed at developing Moldova’s national economy through improvements in the agricultural sector. The ‘Agriculture Project in Moldova’ will focus on expanding trade, strengthening market connections, improving productivity, creating post-harvest infrastructure and developing private sector capacity to meet international standards. Apple, grape, stone fruit and vegetable producers will be the main beneficiaries of the project, and the project will also emphasize empowering women and young farmers. The project is being implemented by Chemonics International in partnership with several local and international organizations.
9)
Japan providing a grant for agriculture conservation
February 22nd, 2017, http://radiochisinau.md/japonia-va-oferi-4-8-milioane-de-dolari-pentru-dezvoltarea-agriculturiiconservative-in-republica-moldova---46256.html
Japan is contributing a USD 4.8 million grant for the implementation of the ‘Conservation of Agriculture – Developing Sustainable Soil Management Systems in Moldova’ project. The project will provide for the purchasing of equipment to help conserve agriculture in Moldova. As stipulated in the National Strategy of Agricultural and Rural Development 2014-2020, Moldova is actively working to develop sustainable agriculture, adapt to climate change and apply practices to protect and enhance soil fertility.
10) FAO project to improve the quality of dairy cows February 21st, 2017, http://agora.md/stiri/28456/fao-va-ameliora-calitatea-genetica-a-vacilor-de-lapte-din-r--moldova
The Food and Agriculture Organization (FAO) of the United Nations conducted a two-day seminar on the techniques of artificial insemination in Chisinau as part of the ‘Development of the National Strategy and Action Plan for Animal Genetic Resources and the Genetic Improvement of Dairy Cows’ project. The seminar brought together 50 specialists from the National Research Institute for Genetic and Breeding Animals to learn more about monitoring and documenting milk production and the best practices of Page 4
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artificial insemination used in other countries. Participants were also informed of the new control requirements for milk introduced by Moldovan authorities. The second day of the workshop included practical application of the new techniques learned. Since the introduction of a market economy in the early 1990s, cattle production in Moldova has been largely left to family farms, with farmers having limited knowledge and capacities for growth and cattle reproduction on a large scale. Improving the genetic resources used in agriculture will improve cattle and milk production and increase profitability for farmers. Farmers will also benefit from specialized services for dairy farming which will improve production efficiency and profitability. The FAO project began in 2015 and aims to improve the genetic resources of farm animals, especially dairy cows, in Moldova through the reintroduction of a registration system for dairy cattle productivity, technical assistance and the procurement of laboratory equipment.
11) Moldova receives new food safety control equipment February 7th, 2017, http://moldpres.md/en/news/2017/02/07/17000995
The National Food Safety Agency of Moldova received EUR 19,000 in modern equipment from the German government to help the Agency modernize and carry out food safety controls in a way that meets international norms. The equipment will be distributed to the territorial subdivisions and will make cooperation between them and national inspectors easier, especially in emergency situations. German Ambassador to Moldova, Ulrike Knotz, has also announced that German authorities will provide Moldova with a EUR 2 million grant for modernizing their system for verifying food quality and that such modernization will help Moldova in developing trade in Europe and opening up new sales markets for Moldovan producers. The government of Sweden and a European Union (EU) delegation are also working under two different projects to help the National Food Safety Agency receive modern equipment, carry out controls and issue internationally recognized certifications.
Private Sector 12) Moldova’s top 2016 export: unprocessed agriculture March 6th, 2017, http://tvrmoldova.md/economic/legumele-au-devenit-marfa-cea-mai-exportata-din-moldova/
Unprocessed vegetable products and grains such as sunflower seeds, walnuts and wheat have recorded a growth of 4.5 times since 2004, increasing from USD 120 million in value in 2004 to USD 529 million in 2016. At the same time, the share of food products such as wines, spirits and fruit juices has recorded a sharp drop, decreasing from 35% of exports in 2004 to 16% in 2016. This means that unprocessed, raw agricultural products have surpassed processed food as Moldova’s most exported goods. In addition, textile exports nearly doubled and amounted to 15% of total exports in 2016.
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13) Grants available for Moldovan berry producers February 20th, 2017, http://agrobiznes.md/granturi-pentru-producatori-de-pomusoare-din-moldova.html
Fruit plantation owners could benefit from grants offered by the ‘Improving Productivity and Market Access for Berry Producers’ project being conducted by the Business Consultancy Center nongovernmental agency. The project aims to help berry producers in preventing soil erosion through the planting of grasses or the placement of mulch and organic materials in the aisles of the plantations. In order to be considered for receiving the grant, beneficiaries must: be a registered, legal entity in Moldova cultivating fruit for more than one year; have a minimum plantation size of 0.5 hectares; employ a qualified specialist/agronomist to oversee the plantation; possess a profit/loss statement for the previous year approved by the Department of Statistics; owe no debt to national or local budgets; maintain national accounting standards; and use a drip irrigation system. The deadline for submitting applications to the Business Consultancy Center is March 10, 2017; results will be announced March 15, 2017.
14) Fruit producers take part in international exhibition February 10th, 2017, http://moldpres.md/en/news/2017/02/10/17001118
Twelve Moldovan companies, members of the Moldova Fruct Association, participated in the ‘Fruit Logistica’ international exhibition in Berlin. Fruit Logistica is the biggest European exhibition dedicated to fresh food products and takes place annually, bringing together over 2,800 participating companies and more than 70,000 visitors each year. Moldovan companies’ participation in Fruit Logistica was possible due to a partnership between the German Agency for International Cooperation and the Moldova Fruct Association as well as the support of the United Nations Development Program (UNDP) Moldova and the Moldovan Investments Attraction and Export Promotion Organization (MIEPO). UNDP Moldova and the Moldova Fruct Association have been supporting Moldovan producers and exporters in taking part in this exhibition since 2011.
15) New Moldova Agroindbank loan product to help farmers February 9th, 2017, http://agora.md/stiri/27965/moldova-agroindbank-sustine-agricultorii--oferindu-le-finantare-pentrudezvoltarea-afacerii
Moldova Agroindbank has announced a new credit product to help farmers with spring works. The new agricultural loan is available to legal persons engaged in entrepreneurial activities and is available for amounts of up to MDL 300,000 and with a repayment term of up to 18 months. This allows farmers to take credit for spring works and repay once they collect and sell their harvest. Farmers can take and use the credit for working capital, harvesting, processing production or other agricultural activities. The special offer is available from February 9 – May 31, 2017
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Prepared by Business & Finance Consulting (BFC) www.bfconsulting.com In this bulletin, BFC provides extracts from articles that have been published by others and as a result cannot be held responsible for such content. The articles do not necessarily reflect the opinions of BFC, its staff, its associates or its partners. Copyright of articles is retained by their authors.