Japan International Cooperation Agency (JICA) Data Collection Survey on Agriculture Sector in Moldova Final Report September 2017 PADECO Co., Ltd. TASK Co., Ltd. Data Collection Survey on Agriculture Sector in Moldova Final Report Contents 1. Outline of Study ................................................................................................................ 1 1.1 Study Background and Objective ............................................................................. 1 1.1.1 Background...................................................................................................... 1 1.1.2 Objective ......................................................................................................... 1 1.1.3 Target Areas and Estimated CP Agencies .......................................................... 1 1.1.4 Survey Contents ............................................................................................... 2 1.2 Report Structure....................................................................................................... 4 2. Agricultural Sector Trend ................................................................................................. 5 2.1 The Current Status and Transition of Agricultural Sector .......................................... 5 2.1.1 The Position of Agriculture among Industries ................................................... 5 2.2 Agricultural Production and Market Trend ............................................................... 6 2.2.1 Outline of Primary Products ............................................................................. 6 2.2.2 Outline of Agri-food Processing Industry ....................................................... 31 2.3 Management Trends and Workforce ....................................................................... 42 2.3.1 Current Status of Management Style .............................................................. 42 2.3.2 Current Status and Business Ownership of Workforce .................................... 51 2.3.3 Issues of Management .................................................................................... 55 2.4 Status of Agricultural Technologies ........................................................................ 58 2.4.1 Current Status of Development, Transfer and Dissemination of Technologies .................................................................................................. 58 2.4.2 Cost Efficiency of Productions of Major Crops............................................... 66 3. Agricultural Policy .......................................................................................................... 82 3.1 Position of Agriculture in the National Development Plan ...................................... 82 3.2 Policy, Development Issue and Budget in Agricultural Sector ................................. 83 3.2.1 Moldova Agriculture and Rural Development Strategy 2014-2020 ................. 83 3.2.2 Progress of Policy and Development Issue ..................................................... 88 3.2.3 Governmental Expenditure for Agricultural Policy ......................................... 90 3.2.4 Regulation on Food Safety ............................................................................. 91 3.3 Legal and Taxation System in Agricultural Sector .................................................. 92 3.3.1 Major Legal System ....................................................................................... 92 3.3.2 Major Taxation System .................................................................................. 93 3.3.3 Incentive Program for Farmer......................................................................... 94 3.4 Organization Structure of Ministry and Public Agency related to Agriculture ......... 99 3.4.1 MoAFI ........................................................................................................... 99 3.4.2 NFSA .......................................................................................................... 103 3.4.3 AIPA ............................................................................................................ 105 3.4.4 2KR PIU ...................................................................................................... 107 3.4.5 NFFM .......................................................................................................... 109 3.4.6 AGROinform ............................................................................................... 110 3.4.7 Ministry of Economy and Infrastructure ....................................................... 112 3.4.8 MIEPO ........................................................................................................ 113 3.4.9 ODIMM ....................................................................................................... 114 i Data Collection Survey on Agriculture Sector in Moldova Final Report 4. Current Status and Issue of Agricultural Sector .......................................................... 118 4.1 Current Status and Issues of Small-scale Farmers ................................................. 118 4.1.1 Survey Methodology .................................................................................... 118 4.1.2 Farming System ........................................................................................... 118 4.1.3 Engagement Style ........................................................................................ 132 4.1.4 Farming Environment .................................................................................. 136 4.1.5 Promotion of the Development of Agribusiness with HVCs .......................... 143 4.2 Agricultural Actor Analysis .................................................................................. 148 4.2.1 Actor Analysis ............................................................................................. 148 4.2.2 Current Status and Issues of Production and Processing ................................ 155 4.2.3 Current Status of and Issues of Distribution and Marketing .......................... 164 4.2.4 Current Status of the export Markets ............................................................ 181 5. Analysis of Assistance Trend of Development Partners ............................................... 198 5.1 Past Cooperation History of JICA/Japan .............................................................. 198 5.1.1 The Food Security Project for Underprivileged Farmers (formerly known as “2KR”) .................................................................................................... 198 5.1.2 Project for Effective Use of Biomass Fuel in the Republic of Moldova ......... 199 5.2 Assistance Trends of Other Development Partners ............................................... 199 5.2.1 EU ............................................................................................................... 199 5.2.2 USAID/MCC ............................................................................................... 201 5.2.3 WB .............................................................................................................. 202 5.2.4 FAO ............................................................................................................. 204 5.2.5 IFAD............................................................................................................ 207 5.2.6 Summary ..................................................................................................... 209 5.3 Evaluation of and Lessons Learned from WB project “MAC-P” ........................... 211 5.3.1 Overall Status and Evaluation ...................................................................... 211 5.3.2 Status and Evaluation of Each Component/Sub-component .......................... 211 5.3.3 Lessons Learned from MAC-P ..................................................................... 213 6. JICA’s Assistance Scenario Suggested by the JICA Survey Team .............................. 214 6.1 Assistance Scope ................................................................................................. 214 6.2 Assistance Scenario ............................................................................................. 216 ii Data Collection Survey on Agriculture Sector in Moldova Final Report List of Tables Table 1-1: Work Schedule ......................................................................................................... 3 Table 2-1: GDP in Agriculture and Industry ............................................................................... 6 Table 2-2: Transition of Agricultural Production (2012-2014) .................................................... 7 Table 2-3: Land Use in Moldova ............................................................................................... 7 Table 2-4: Sown Areas of Main Crops ....................................................................................... 8 Table 2-5: Average Yield per ha of Agricultural Crops ............................................................... 9 Table 2-6: Plantations and Orchards ........................................................................................ 12 Table 2-7: Table Walnut Production in Moldova 2008 - 2015................................................... 15 Table 2-8: Number of Animals per Category of Producers ....................................................... 17