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Report on the Status of Organic Agriculture and Industry in Moldova

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Report on the Status of Organic Agriculture and Industry in Moldova Report on the Status of Organic Agriculture and Industry in Moldova Gefördert durch aufgrund eines Beschlusses des Deutschen Bundestages Imprint Editor Joachim Lenz, Claudia Neumannn EkoConnect e.V. Schützengasse 16 01067 Dresden www.ekoconnect.org Authors Christoph Arndt, Andrei Lozan Proofreading EkoConnect e.V. Translation from German Christoph Arndt Layout & typesetting whateverworks.biz Gefördert durch aufgrund eines Beschlusses des Deutschen Bundestages Disclaimer This report was funded by the German Ministry of Food and Agriculture within the framework of the project 2820OE002. This report has been prepared to the best of our knowledge and belief. We cannot however accept any guarantee for the accuracy, correctness or completeness of the information and data provided. Content A Moldova: Facts and Figures 3 B The Organic Sector in Moldova 8 History National legal frame National support system Organisations Control Bodies Research and training Donor support C Organic Crop Production 16 Certified enterprises and area Organic production and export of organic raw materials Import of organic inputs D Organic Processing and Food Manufacturing 20 Certified enterprises Organic products and export of organic products Import of organic inputs E The Organic Market in Moldova 22 Market size and trends Sales channels and actors Direct sales, Specialised retail and catering, Importers, Supermarket chains F Opportunities 24 Crop and market diversification Primary processing Crop-livestock integration 25 26 A Moldova: Facts and Figures Country 29,400 km 2.6 m (2020)/3.6 m (2009) Area Usual resident population 2.8 Persons 959,200 (2017) Average household size Number of households MDL (19.5 MDL = 1 €, Ø 2019/20) 4011 € (2019) Currency GDP per capita Food market 371 € 9% Expenditure on food per capita and year Expenditure on food (% of GDP per capita) 980 Mio. € (2019) 88% (2019) Turnover in organised food retail trade Level of self-sufficiency 44% (2019)¹ Contribution of agriculture and food to total exports (2019, by value) 1 trademap.org (2019, by value) Source: statistica.md 3 Moldova: Facts and Figures Moldova is one of the largest suppliers to EU for… Apple juice concentrate Rank1 Sunflower seeds / Crude sunflower oil Rank2 Fresh plums Rank3 Source: comtrade.un.org Moldova is one of the largest suppliers to Russia for… Fresh plums Rank1 Fresh apples Rank2 * Dried plums / Honey / Fresh table grapes / Fresh cherries Rank3 Source: comtrade.un.org | * Rank 1 by volume Most important exports (2019) Most important food imports (2019) Export Export Export Import Import Import share of value surplus share of value surplus consumption (million €) (million €) production (%) (million €) (million €) (%) Grains Dairy 52.0 46.8 54% 207.3 187.1 36% (maize, wheat, etc.) Meat 37.3 29.5 77% Sunflower seeds 198.3 176.7 72% Fish 42.2 42.2 100% Sunflower oil 60.3 57.4 86% Vegetables 58.9 50.5 92% Walnuts 80.2 65.8 4% Grain products 45.0 30.2 69% Apples (fresh) 48.0 46.8 36% Source: statistica.md, madein.md, invest.gov.md, eba.md, wineofmoldova.com, agrobiznes.md, FAO Apple juice 41.6 41.5 98% concentrate Stone fruit (fresh) 21.0 18.7 32% Dried plums 6.4 6.3 70% Table grapes (fresh) 26.5 26.1 56% Source: trademap.org 4 Moldova: Facts and Figures Map 2 1 4 Ukraine 3 7 6 5 10 12 9 11 8 13 17 14 16 18 15 19 23 11 22 23 Dnister 21 Prut 20 22 24 27 26 25 11 28 29 30 36 Romania 35 31 33 34 34 32 33 33 Ukraine 33 32 1 BRICENI 7 SOROCA 13 SÎNGEREI 19 CĂLĂRAŞI 25 IALOVENI 31 CANTEMIR 2 OCNIŢA 8 GLODENI 14 FĂLEŞTI 20 NISPORENI 26 HÎNCEŞTI 32 CAHUL 3 EDINEŢ 9 BĂLŢI 15 UNGHENI 21 STRĂŞENI 27 ANENII NOI 33 GĂGĂUZIA 4 DONDUŞENI 10 FLOREŞTI 16 TELENEŞTI 22 CRIULENI 28 CAUŞENI 34 TARACLIA 5 RÎŞCANI 11 TRANSNISTRIA 17 REZINA 23 DUBĂSARI 29 CIMIŞLIA 35 BASARABESCA 6 DROCHIA 12 ŞOLDĂNEŞTI 18 ORHEI 24 CHIŞINĂU 30 LEOVA 36 ŞTEFAN VODĂ Figure 1: Map of Moldova 5 Moldova: Facts and Figures The Transnistria problem In 1992, the strip of land left of the River Dnester (East- maintains a military presence. Although de jure part of ern side) split away from the Republic of Moldova. The the Republic of Moldova, the Government of Moldova so-called Pridnestrovian Moldavian Republic comprising has no authority over Transnistria and there is a customs Transnistria with 4163 km² and the town of Bender with border to the break-away territory. Information in this 97 km² (population about 470,000) is not recognised by publication relates to the Republic of Moldova without any other state and under the influence of Russia which Transnistria. Trade relations Moldova is a member of the WTO and has free trade equate sanitary standards. Food products from the EU agreements with EU, CIS, CEFTA, GUAM and Turkey (43 can easily being imported to Moldova with duty rates countries). Negotiations of free trade agreement with between 10% (cheese) and 15% (cereal products). A China and EFTA member states are underway. stepwise liberalisation phase (until 2024) is foreseen for The free trade agreement with EU is called DCFTA certain sensitive products (such as wine, fruits/veget- (Deep and Comprehensive Free Trade Area) and is part ables, textiles). To reduce trade barriers, Moldova has so of Moldova’s EU Association Agreement that entered into far adopted more than 25,000 EU technical standards force on September 1, 2014. It allows Moldova access to (of 26,496) in its national legislation. At the same time, the European Single Market and grants EU investors the standards (in particular, GOST) that are contradictory to same regulatory environment as in the EU. It eliminates the new European standards are being withdrawn. all custom duties on both sides except for some for The Association Agreement, stimulated the flow of which a gradual elimination is foreseen. Today, the most European FDI into Moldova. In addition, EU and Moldova important fruits produced in Moldova (table grapes, agreed to provide the right of Qualified personnel for tem- apples and plums) are imported into the EU free of cus- porary work. Visa-free travel to the EU started in 2014. toms duties within quotas. The most-favoured-nation DCFTA so far has brought significant increases of (MFN) customs duty rate applies to imports exceeding exports of wine, table grapes, plums, nuts and grains to quota limit. Grains and oil seeds also enjoy duty free ac- the EU. Today, the EU is Moldova's first trading partner cess to the EU. Animal products from Moldova (except and the first investor. About 70% of Moldovan exports are honey) are currently not allowed into the EU due to inad- directed to the EU, and imports represent almost 50%. Climate Moldova’s climate is moderately continental; its proxi- in the north to 400 mm in the south. Precipitation can, mity to the Black Sea leads to mildly cold autumns and however, vary greatly and long dry spells are not unusual. winters as well as relatively cool springs and summers. While Chisinau should enjoy 550 mm on average, there The climate is ideal for apple production with rather pro- were only 218 mm of rain between September 2019 and nounced day-night temperature differences. Problema- August 2020. Heavy showers and thunderstorms are tic for cropping are late night frosts (such as on 1 April typical for early summer. They lead to flooding, erosion 2020 with -12°C) that can destroy a whole year’s stone and damage from hail. Moldova has about 4,000 small fruit crop. water retention dams which are supposed to hold back Annual precipitation ranges from around 600 mm run-off water from heavy showers. 6 Moldova: Facts and Figures Land and soil Moldova’s land-use (2019) Due to its good soils, Moldova’s land-use is character- ised by cropping: 63% of the land cover is used for cropping (the highest in Europe), forest cover is only 14% 14% (the lowest in Europe) and land suitable for live- Land under forest stock grazing only 11%. 12% 11% Other 86% of the land used for cropping land is under arable Land suitable for land use grazing (mostly farming (mostly maize, sunflower and wheat which unused) make up together 80%). 143,000 ha of orchards (mostly apples, followed by stone fruits and walnuts) as well as 126,000 ha of vineyards signify the intensive type of land-use in Moldova (statistica.md). Typical for Moldova are the shelterbelts often made from several rows of walnut or black locust trees every 500 or so meters which were established all over the country in 63% the 1970s and 1980s, but are often poorly maintained. Land used for cropping About 80% of soils are chernozems (black soils) with a thick humus layer (60-100 cm). The average humus content is just above 3% (reaching 7%); however, in- tensive cropping with tillage and no crop rotation has led to a loss of humus content (in general over 1 per- 86% 14 % cent point since 1990). Approximately 0.7 t/ha of Land used for field crops Land used for humus, accumulated over millennia, is lost annually perennial crops (Cerbari, 2015). 33% Land used for maize 24% Land used for sunflower 23% Land used for wheat 20% Land used for other annual crops Source: statistca.md Agriculture Cropping in Moldova is characterised by large commer- of the old kolkhozes), who rented the land from the mul- cial farms. Most production comes from farms >100 ha titude of small land owners, cultivate two thirds to four for field crops and >30 ha for plantation crops.
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