The European Union provides farmers with access to the world’s largest market of 500 million consumers, willing to pay for quality products, which is why EU membership is vital for Moldovan agriculture, said Secretary General of the Ministry of Agriculture and Food Industry Sergiu Gherciu, who gave an interview to IPN News Agency. According to the official, Moldova produces more than it consumes, respectively exports are essential in maintaining and developing the agricultural sector. In addition, the authorities appreciate the openness shown by agricultural producers to reach European standards, despite the challenges they face. However, the official admitted that primarily the difficult access to cheap and long-term financial resources is a common problem of the entire agro-industrial sector.
The Republic of Moldova, especially the Ministry of Agriculture, has taken important steps to prepare the state institutions to align with European standards. The main focus is on institutional strengthening so that the institutions operate according to the model of the European institutions and are able to absorb funds and implement effective policies for the agro-industrial sector.
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Recent developments, also reflected in the European Union’s enlargement report, show that the Ministry of Agriculture has made some important progress. These include the reform of the Ministry, a process that has taken place twice since 2021. The last reform was carried out specifically to meet the requirements of European integration. We created new departments, necessary to meet EU standards, and strengthened the capacities of the Agency for Intervention and Payments in Agriculture (AIPA), doubling the number of employees.
Of course, these measures are not sufficient for the full accreditation of the AIPA in order to absorb European funds. We are currently working together with a Twinning project, provided by the European Union, which will support the Ministry of Agriculture and the AIPA for two years. The aim of this project is to prepare our institutions to effectively manage pre-accession funds.
Moldova has access to particular European funds through the Instrument for Pre-accession Assistance (IPA). What amounts have already been attracted in the field of agriculture and how are these resources used?
Currently, we do not yet have financial resources directly allocated to the business community or the agricultural sector. However, we benefit from technical assistance from the European Union, through projects dedicated to concrete problems faced by Moldova. For example, the Twinning project, which is a technical project for a period of two years, aims to support the Ministry of Agriculture, the Agency for Intervention and Payments in Agriculture, as well as other institutions subordinated to the Ministry, in the process of adapting to European requirements.
So, at the moment it goes only to technical assistance…
Yes, and the next stage is related to the Growth Plan, which has been talked about since last year. It provides for the allocation of €1.9 billion, of which about €300 million is intended directly for the Ministry of Agriculture and the agro-industrial sector.
Part of these funds will be used for the development of electronic registers (such as the AJAX system), which will centralize farmers’ data. This data is essential as payments will be conditional on the fulfilment of particular indicators. This will streamline the AIPA’s capacity to manage payments and support the necessary structural reforms.
The rest of the funds – between €100 million and €200 million – will be directed directly to the private agricultural sector, through the AIPA, based on subsidy schemes aligned with the EU’s Common Agricultural Policy. In fact, there is currently a draft law in Parliament that connects about 50% of our forms of subsidy to those practiced in the European Union. Thus, Moldovan farmers will benefit from European financial support in order to achieve the necessary export standards, to become more competitive and resilient in the face of climate challenges.
What does this process mean concretely for farmers? What benefits will they feel?
First of all, we are talking about strengthening farmers’ capacities and better preparing them to compete in the European market. It is important to understand that access to a market of 500 million consumers is a major opportunity, but it also involves significant challenges. Through these reforms, our farmers will be able to compete on a level playing field, have access to structured financial support and will be better prepared to adapt to the new environmental, quality and sustainability requirements.
When we talk about modern techniques in agriculture, what exactly do you mean?
It is about the modernization of enterprises, the achievement of certain phytosanitary and sanitary-veterinary standards, as well as the integration of producers into domestic and foreign markets. All these are essential elements, and the available European funds will contribute directly to supporting farmers to meet these standards. The goal is clear: to harmonize with European Union rules and increase resilience in the face of current challenges.
Of course, an important aspect is adaptation to climate change, which is no longer a future threat, but a daily reality. These funds will support investments in modern and sustainable agricultural practices – for example, organic or conservative farming, which are more environmentally friendly and resilient to climate stress. The implementation of these techniques requires substantial resources, and the financial support provided by the European Union will be essential.
Many candidate states faced difficulties in adapting their public administration in order to efficiently manage European funds, given the amounts made available. What is the Ministry of Agriculture doing?
Indeed, we are talking about extremely important pre-accession funds. Currently, Moldova does not have direct access to these funds, as the European Union’s multiannual budget, including for agriculture and enlargement, is already approved for the period 2021–2027. Only starting with the new financial framework, which will be adopted after 2027, Moldova could benefit from these resources.
To be eligible, state institutions must comply with all European absorption requirements. The Ministry of Agriculture has taken the necessary steps in this direction, including the establishment of a managing authority for the financial resources from the pre-accession funds – the Agency for Intervention and Payments in Agriculture. We are currently working together with a Twinning project offered by the European Union, which directly supports the process of preparing the AIPA for European accreditation. This is undoubtedly a priority for the Ministry.
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You mentioned earlier an important component of alignment with European standards – organic farming. The European Union is intensively promoting this model. What are the Republic of Moldova’s plans to develop the organic products sector?
Organic farming is, indeed, a strategic direction and highly promoted by the European Union. In Moldova we have a considerable number of producers who comply with the requirements for organic products. However, they are not certified at European level, which is why, unfortunately, many are forced to obtain certification in neighboring countries, such as Romania.
It is a problem of institutional infrastructure and accreditation system, which we aim to solve. We are considering strengthening organic certification capacities at national level, so that Moldovan products are officially recognized as organic and can be promoted under this status on international markets.
It is, therefore, a complicated process…
Yes, it is a very complicated process. In addition, in Moldova we do not yet have a large enough number of organic producers to justify the permanent presence of international certification companies. However, we are working on this aspect. There are already discussions and some progress to attract representatives of these companies in the country.
Organic production is on the rise. Last year we adopted the regulatory framework on organic products, and we are currently accelerating the implementation of secondary acts. We offer higher subsidies to organic producers, because it is important that local consumers also have access to healthy products. Most farmers are already concerned about this goal.
We want these products to be officially certified and we are working in parallel on the legislative part, on the mechanisms for granting additional subsidies, in order to stimulate the organic sector.
Growing organic products is a complex and expensive process. How do you intend to encourage manufacturers to adopt this direction?
We have two main motivation instruments: higher subsidies granted by the state and a higher final price of the organic product on the market, compared to the conventional one. These aspects make organic production attractive, especially for small farmers, who can adapt more easily to the new standards.
For large producers, the transition is more difficult and complex, but we already have positive examples – some of them have created separate organic production divisions. The important thing is that the process is natural, sustainable and healthy. Not all of them have to turn into organic producers overnight. That’s why, in addition to subsidies, we will also offer other incentives, such as laboratories for certification and logistical support. These measures will contribute to the accelerated development of organic farming in Moldova.
European standards in the field of food safety and environmental protection imply significant transformations in production methods. Which are the sectors of Moldovan agriculture that require the largest investments? Where are the biggest problems witnessed now?
Virtually all subsectors in the agro-industrial sector need to meet new standards. However, we also have areas where we have made notable progress. For example, the wine industry has begun to implement environmental standards, including by installing wastewater treatment plants. We also have improvements in the livestock sector.
In the horticultural sector, important steps are also being taken. I would also like to emphasize an indirect effect of the recent crises: more and more farmers in Moldova have started to invest in renewable energy. Thus, the environmental impact of an agro-industrial product is reduced. We have cases of farmers who are completely energy independent, using exclusively renewable sources – a model that needs to be expanded.
However, the number of such examples remains relatively small…
That’s right, but the trend is upward. We have integrated the renewable energy component into the subsidy policies. The Organization for the Development of Entrepreneurship also supports these initiatives, and farmers have applied and implemented projects that make them independent energy workers. It contributes to a reduced environmental impact and complies with European standards.
This is only part of the efforts. We are also working on the greening of agro-industrial enterprises. We are also trying to develop the necessary infrastructure for farmers. For example, we are in the process of building an animal waste processing plant in Criuleni – a project carried out by the Ministry of Agriculture together with the World Bank. The aim is to reduce the pollution generated by residues from the livestock industry.
In parallel, we are working on a feasibility study on the use of waste from the wine sector, for its reintegration into the real economy. These initiatives are advancing step by step and require consistent investments, but we clearly know what we want to achieve and where we want to go. The important thing is that farmers are also motivated. Being connected to foreign markets and in contact with international partners, they understand the importance of these standards. In some cases, entrepreneurs in the agricultural sector have moved faster than the public administration in achieving these requirements.
We see a real openness, both on the part of the authorities and on the part of agricultural producers, to reach and maintain European standards.
Farmers are often very vocal about the difficulties they face. What are the most pressing problems experienced by farmers in Moldova today?
It is important to divide agriculture into sectors, because each one faces specific problems. For example, the cereal sector – of field crops – has been severely affected in recent years by drought and the sudden increase in production costs, especially imports. We are talking about high prices for fertilizers and petroleum products, which have increased significantly following the Russian Federation’s invasion of Ukraine. These developments have led to cost increases that have directly affected farmers’ competitiveness and profitability.
In this connection, one of the main long-term problems is the difficult access to advantageous financial resources. That’s why we work together with farmers to deeply understand these challenges and identify viable solutions. A concrete measure in this regard is the launch of a new support package for investments, but also for the purchase of inputs, which will allow access to loans with a preferential interest rate of 5.1%. These are public funds that will be managed through commercial banks, but eligible farmers will benefit from much more advantageous conditions than those usually practiced on the market.
In addition to this, there were also forms of punctual aid, such as the donation from the Government of Japan, worth about 2 million dollars, through which fertilizers were purchased. They were made available to farmers at prices below market prices and with the possibility of payment in installments. We have also allocated funds to partially compensate for the losses suffered and we have proposed a draft law – currently suspended – which provides for the postponement of the repayment of loans for certain categories of farmers, so that they can sell their production at a favorable time, when prices are better, and then repay the amounts owed.
There are several complementary measures, but each sector has its specificity. In the wine sector, for example, the challenges are different. Manufacturers in this field want to meet European standards, including environmental standards, but for this they need additional resources. That is why we focus on identifying new markets and attracting support for the modernization of this sector. It must be said that viticulture is one of the most dynamic and visible segments of the Moldovan agro-industry – a true pioneer in integrating into the European market.
And it is on the rise…
Moldova exported wine products to over 63 countries last year. Moldovan wine brings us international fame and recognition. Since 2015, we have won more than 6,000 medals at international competitions, including the title of the best red wine in the world in 2018. It is a special achievement and, at the same time, a national pride. But behind these successes lies the hard work and dedication of our farmers – and we have to admit that.
Of course, each agricultural sector has its own specifics and challenges. But, if we refer to the problems common to the entire agro-industrial sector, I would mention first of all the difficult access to cheap and long-term financial resources. Also, the development of infrastructure and the modernization of agricultural enterprises is a constant need. Many manufacturers have already reached a certain level of standards, but they need additional investment to be able to move on to the next stage of development.
Another important aspect is promotion. Unfortunately, we are still deficient here. A much closer collaboration between authorities and farmers is needed. When we go to countries in Asia or other distant regions, we encounter difficulties in promoting Moldovan products for the simple reason that people do not know Moldova. And the promotion of a product becomes complicated when the visibility of the country of origin is lacking.
Of course, if we go into detail on each sector, we will identify a series of problems and particularities, but those mentioned are valid at a transversal level.
Family farming has experienced significant development in recent years, which is gratifying. What measures are planned to support and develop this form of agriculture?
Family farming is a priority for the Ministry of Agriculture. For this reason, both the Law on Subsidization in Agriculture and subsequent normative acts are largely designed to support small and medium-sized farmers. We believe that family farms are the key to the future of our villages – they maintain rural communities, create jobs and provide stable sources of income for the people in these areas.
We aimed the subsidy policies at supporting these farms and encouraging the diversification of rural activities. For example, we support small wineries to develop tourist activities or services of the hospitality industry, which combine very well with the wine sector. These initiatives are supported through the National Fund for the Development of Agriculture and Rural Environment, but also through other programs, including those implemented through the Organization for the Development of Entrepreneurship (ODA) and other ministries.
A successful example of supporting rural communities is the LEADER program, implemented through Local Action Groups (LAGs). They bring together public authorities, business and civil society to develop local rural development strategies. Currently, we cover over 51% of the country’s territory with these groups, and the European Union has repeatedly noted that Moldova is an example of good practice outside the community space.
Of course, the funds available are never enough, but we are constantly looking for additional support from international donors and try to direct resources to the LAGs with the greatest capacity for implementation and impact.
In parallel, we are working on the development of rural infrastructure — an essential aspect for the operation of family farms — in partnership with the Ministry of Infrastructure and other relevant institutions. We also try to promote the products of these farms, because they can be more easily adapted to the requirements of organic production, given the small size of the farms.
We financially support these farms from several sources, but it is important that producers are prepared. One of the frequently reported problems is related to marketing: not the entire production can be sold directly, and without a hospitality industry component or without access to the market, many farmers encounter difficulties.
A major challenge is related to the reduced production capacity and constant delivery. Large retailers often tell us that small farmers cannot supply the necessary quantities and cannot meet the deadlines imposed by commercial networks. For this reason, we encourage the formation of cooperatives that allow small farmers to join forces, to produce at a uniform standard, in a quantity sufficient to meet market demand. This is the key to integration into the value chain, an essential principle in the European Union as well.
Foreign buyers constantly send us the same message: Moldovan products are qualitatively competitive, but the lack of constant delivery capacity is a real problem. That is why the formation of producer groups and cooperation are the sustainable solutions for small farmers to assert themselves in the market.
What does Moldova’s accession to the European Union mean for Moldovan farmers and for the entire agricultural sector?
Accession to the European Union is vital for the agro-industrial sector. First of all, because it gives us access to the largest market in the world – a market of about 500 million consumers in developed countries, who are willing to pay a fair price for quality agri-food products.
We must admit that, in many subsectors, the Republic of Moldova produces more than it consumes. That is why exports are essential for the maintenance and development of the agricultural sector. And once a product is accepted on the European Union market, it automatically receives a quality recognition that facilitates access to other international markets.
Basically, the label “according to EU standards” becomes a guarantee and a global competitive advantage. A second essential element is the meeting of European standards. This process transforms our farmers into more resilient actors, better prepared to face market changes and climate or economic challenges. It is important to understand that farmers in the European Union also face difficulties, but compliance with these standards provides concrete tools for adaptation and sustainable development.
And last but not least, the access to funds. The European Agricultural Fund for Rural Development (EAFRD) is one of the largest financial instruments of the European Union. With the accession, Moldovan farmers will be able to access these resources directly, for investments, modernization, innovation and expansion. This will allow them to grow, consolidate and become competitive not only regionally, but also internationally.
