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Moldova farmers pivot: Fruit thrives as cereals face headwinds

Moldovan agriculture faced a complex landscape in 2023, battling the ripples of war, scorching drought, and fluctuating market forces.

While cereal producers grappled with significant challenges, fruit farmers embraced new opportunities in the European market.

Cereal Woes:

The war in Ukraine significantly impacted Moldova's cereal sector. Excess cheap Ukrainian grain flooded the market, driving down prices and squeezing profit margins for domestic producers. Alexandru Slusari, director of the Farmers' Force Association, highlighted the issue: "Prices at one point were half the cost of production." While the government eventually imposed restrictions on Ukrainian grain imports, the delay left many farmers reeling.

Fruity Diversification:

Moldovan fruit producers, however, found solace in the liberalisation of the European market. With embargoes imposed by Russia, they pivoted away from traditional markets and saw record exports of plums to the EU. Iurie Fală, director of Moldova Fruct, hailed the shift: "We exported a record amount of plums to the EU, 76% of the total exported." Apples and cherries also found new European homes, signalling a promising diversification for the sector.

Government Support:

Recognizing the agricultural sector's struggles, the Moldovan government increased agricultural subsidies to a record 1.9 billion lei, nearly double the amount allocated in 2018. Specific measures included direct payments per hectare for cereal producers and per head of cattle for livestock farmers.

Minister of Agriculture Vladimir Bolea emphasised the government's commitment: "We made direct payments for each hectare, 1238 lei to reduce costs, and allocated 200 million lei specifically for cereal farmers affected by rising loan rates and falling selling prices." These efforts, while impactful, did not fully compensate for the losses incurred by many farmers.

Looking Ahead:

Despite the challenges, 2023 also presented opportunities for Moldovan agriculture. The sector adapted to changing market realities, explored new export destinations, and witnessed increased government support. Moving forward, diversifying markets, investing in infrastructure, and embracing technological advancements will be crucial for long-term success.

Translation by Iurie Tataru

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