final draft chisinau, february 2016 - donausoja · final draft chisinau, february 2016. danube soya...

MOLDOVAN SOYA SECTOR

A VALUE CHAIN ANALYSIS



Final Draft

Chisinau, February 2016



Danube Soya Association Wiesingerstrasse 6 1010 Vienna, Austria www.donausoja.org [email protected]

Austrian Development Agency Zelinkagasse 2 1010 Vienna, Austria www.ada.gv.at [email protected]

SGS Moldova S.A – member of SGS group 7, M. Eminescu street 2009, Chisinau, Republic of Moldova www.sgs.com [email protected] Authors: Olga Gorobivscaia and Sergiu Croitoru

This study is part of an endeavour of the Danube Soya Association to promote cultivation and utilization of soya and soya products within Moldova. The assessment of Moldova’s Soya Sector is an important contribution to the Association’s strategy which aims at better harvesting the country’s agricultural potential and at improving soya production and utilization in the country. With a view to enhance Moldova’s position in Europe’s soya supply the present report helps to understand domestic soya production and utilization as well as as linkages to international soya value chains. This study was commissioned by Danube Soya Association and developed by SGS Moldova between September 2015 and February 2016 and with the financing of the Austrian Development Cooperation. We hope that this report provides a valuable contribution to similar initiatives in the country and that it will fuel the discussion. We would be delighted if this report found wide use within the community and beyond. In order to publish or reproduce content of this study kindly ask the Donau Soja Association for permission since this study is the property of the Austrian Development Cooperation and the Donau Soja Association. Matthias Krön Chairman Danube Soya Association February 2016

Moldovan Soya Sector – A Value Chain Analysis 2

Content Figures list ..................................................................................................................................................... 3

Abbreviations ................................................................................................................................................. 4

Introduction .................................................................................................................................................... 5

History of soy cultivation ................................................................................................................................ 6

Short Review/Compilation of existing literature ............................................................................................. 7

I. KEY POINTS OF SOYBEAN PRODUCTION AND ITS COMPETITIVENESS .................................... 8

1.1 Production of Soy seeds ............................................................................................................ 8

1.2 Cultivation of Soy ...................................................................................................................... 14

1.3 Consumption of Soy ................................................................................................................. 27

1.4 Processing in Moldova ............................................................................................................. 33

1.5 Markets - Domestic and International ..................................................................................... 35

II. Legislation background and proposals ........................................................................................... 38

2.1 Relevant policies and strategies .............................................................................................. 38

2.2 Legislative and policy framework ............................................................................................ 38

2.3 Subsidy system in the Moldova ............................................................................................... 40

2.4 Phytosanitary regulations ........................................................................................................ 41

2.5 Taxes and fees: .......................................................................................................................... 43

III. SOCIAL IMPACT ................................................................................................................................. 46

IV. SUPPLY CHAIN ANALYSIS ............................................................................................................... 54

4.1 Soy seeds producers ................................................................................................................ 54

4.2 Producers of soy ....................................................................................................................... 55

4.3 Processors ................................................................................................................................. 57

4.4 Distribution and business practices ....................................................................................... 57

4.6 Transport, logistics ................................................................................................................... 58

V. Results of interviews ......................................................................................................................... 61

SWOT analysis........................................................................................................................................... 61

Annexes ...................................................................................................................................................... 66


Figures list

Figure 1. Evolution of sown areas with industrial crops and soy in the period of 1980 – 2015, ha ............ 15 Figure 2 Evolution of the area sown with oilseeds in the period of 2006 - 2015, thousand ha ................... 16 Figure 3. Evolution of gross harvest of soy, thousand tones ...................................................................... 16 Figure 4 Gross harvest of soy, by categories of producers, thousand tonnes ............................................ 17 Figure 5. Evolution of yield of soy, t/ha ....................................................................................................... 17 Figure 6 Yield of soy, by categories of producers, t/ha ............................................................................... 18 Figure 8. The regions of Republic of Moldova ............................................................................................ 18 Figure 9 Export of organic products, MT ..................................................................................................... 23 Figure 10 Evolution of organic surfaces, ha ................................................................................................ 24 Figure 11 Average sales prices for soy actually formed for agricultural production in agricultural enterprises and farms, MDL/ton .................................................................................................................. 26 Figure 12. The evolution of soybeans exports, tonnes ............................................................................... 28 Figure 13. The structure of soybeans export, % ......................................................................................... 29 Figure 14. Livestock for all categories of producers, as of January 1, thousand capita ............................. 30 Figure 15. Poultry for all categories of producers, as of January 1 ............................................................. 30 Figure 16. Production of eggs for all categories of producers, mio pcs. ..................................................... 31 Figure 17 Dynamics of expenditure for agriculture in absolute terms (million MDL, left axis) and relative terms (%, right axis) .................................................................................................................................... 52 Tables list Table 1 Soybean (Glycyne max (L.) Merrill) – 27 varieties ......................................................................... 12 Table 2 Classification of soy seeds by varietal purity.................................................................................. 13 Table 3 Classification of soy seeds by sowing qualities ............................................................................. 13 Table 4 Sown areas with industrial crops .................................................................................................... 15 Table 5 The area sown with soy, gross harvest and yield per region in 2015 ............................................ 18 Table 6 Soy growth calendar in Republic of Moldova ................................................................................. 19 Table 7. The normed cost of soybeans production, MDL, 2014 ................................................................ 25 Table 8. Normed consumption of 1 ha of soy beans, MDL, 2014 ............................................................... 25 Table 10 The main export destinations of soy beans.................................................................................. 27 Table 11 Processed products from soy, MT ............................................................................................... 31 Table 12 Imports of soy oil .......................................................................................................................... 32 Table 13. Imports of soy sauce, 2010-2015 ................................................................................................ 32 Table 14. Imports of soy cake, 2010-2015 .................................................................................................. 33 Table 15 Requirements of organoleptic and physicochemical characteristics of soybean oil .................... 33 Table 16 Requirements of organoleptic and physic-chemical characteristics of soybean meal feed ......... 34 Table 17 The nutritional value of soybean meal ......................................................................................... 35 Table 18 The rates for corporate income tax .............................................................................................. 43 Table 19. Import tariffs ................................................................................................................................ 44 Table 20 Available income of the population, first quarter, MDL ................................................................ 46 Table 21. Offers of credits for the agriculture .............................................................................................. 49 Table 22 Dynamics of budgetary allocations for agriculture activities on functional groups (million MDL and %) ......................................................................................................................................................... 51 Table 23 List of registered soy seeds producers in 2015 ........................................................................... 54 Table 24 Soy seeds imports ........................................................................................................................ 54


Abbreviations

ADA – Austrian Development Agency APIA - Agency for Payments and Intervention for Agriculture CB – certification body

CIF – Cost, Insurance and Freight

CPT – Carriage Paid To

CSI – Commonwealth of Independent States

FOB – Free On Board

GDP – Gross Domestic Product

GIFP - Giurgiulesti International Free Port

GMO – Genetic Modified Organism

INCE – National Institute for Economic Research

ISTA - International Seed Testing Association

MAFI – Minister of Agriculture and Food Industry MDL – national currency of Republic of Moldova (on 23.10.2015 – 1 EUR = 22,5201 MDL according to NBM) ME – Ministry of Economy

MIEPO – Moldova Investment and Export Promotion Organization

MT – metric tones

NAB – National Accreditation Body

NAFS - National Agency for Food Safety

NBM – National Bank of Moldova NBS – National Bureau of Statistics (all the data used does not contain the data from left part of the Nistru and Bender municipality) OECD – Organization for Economic Co-operation and Development

SWOT – strengths,

USD – United States Dollar

VAT – Value added tax

WTO - World Trade Organization


Introduction

Association Agreement between the Republic of Moldova, on the one hand, and the European Union and the European Atomic Energy Community and the Member States, on the other hand, was signed on 27 June 2014 in Brussels, Belgium. The agreement was ratified by the Parliament on 2 July 2014 and the European Parliament on 13 November 2014.

Moldova-EU Association Agreement establishes a new legal framework for the advancement of relations between Moldova and the EU to a qualitatively higher level, the political association and economic integration with the EU. The Association Agreement is based on an innovative and ambitious approach, including establishment of a Deep and Comprehensive Free Trade - DCFTA, which began the implementation in December 2013. Association Agreement contains provisions binding regulatory norms and broader cooperation arrangements in all sectors of interest. Special attention is given to the implementation and application of the provisions of the Association Agreement, including by stipulating clear deadlines and establish an institutional and administrative framework, thus creating the prerequisites for effective implementation. The EU is the biggest strategic partner of Republic of Moldova.

On 13 June 2014 took place the ceremony of signing the declaration of Danube Soy by Republic of Moldova. Moldova‘s Agriculture Minister signs the Danube Soya Declaration as the twelfth state representative. This political acknowledgement is very important to Danube Soya. With 60,000 hectares of soya, the Republic of Moldova belongs to the major soya cultivation countries and its potential can be forecasted to 120,000 hectares in a long run. According to Donau Soja Guidelines, Moldova is ranked in the highest risk-level, by signing the Declaration Moldova sends out a political signal to promote sustainable, regional and GMO-free soya. Already eleven countries signed the declaration: Austria, Germany (Bavaria, Baden-Württemberg), Hungary, Croatia, Slovenia, Slovakia, the Republika Srpska (Bosnia and Herzegovina), Switzerland, Bulgaria, Romania and Poland welcome a European protein supply through their signature. The Declaration defines the necessary schedule for the implementation of an ambitious cultivation program in the regions along the Danube.

In the 21st century agriculture has a broader dimension and impact than it was considered in the

past. Its multifunctional character proves that modern agriculture is not just about producing food. It can be certainly stated that it is correlated to the environment, being into an evident cohesion with the rural areas, which ascribes to it environmental and social roles besides the important economic ones. Even its primary production function has changed and focus is now given on safe and diversity of food products. Moreover, the 21st century has brought various new challenges like price volatility, climate change or rural poverty that agriculture should meet.

A strategy created for the agriculture sector should account for this changing role and nature of the sector. A modern agriculture and rural development strategy should use a holistic approach and provide a guideline for development in economic, environmental and rural aspects. It should use the synergies between these three dimensions and contribute to a better agri-food sector in the broadest sense.

Development of a National Agriculture and Rural Development Strategy for the period 2014-2020 confirms the recognition by the Government of the Republic of Moldova of importance of the agri-food sector and rural development, and is a precondition for their long-term development. It should also act as a framework for policy makers to identify the major problems and to help in identifying optimal solutions. At the same time, the National Agriculture and Rural Development Strategy will be used as a tool to plan and programme all necessary measures and to secure financial support from Government of Moldova, international development partners, international financial institutions and donors for the implementation of the proposed agenda.


This study was developed in order to learn the current status of soybean cultivation and production of soy products in Moldova, developments in this sector, the normative regulations, competitiveness and risks of this sector of agriculture. The overall assessment of this sector is very important for elaboration of the appropriate strategies for development. This study will help assess the situation of the sector, prioritizing and tracking the sub-areas of intervention and beneficiaries in consultation with the main stakeholders - public and private.

The content of the study is structured from 5 chapters. The first chapter describes the general situation of soybean production, cultivation and consumption of soybean. Chapter II covers legislative and regulatory framework and current strategies. The social situation of participants in the sector is described in Chapter III, and in the part IV is analyzed supply chain of soy. The final part presents the results of interviews, recommendations and SWOT analysis.

Object of this research is to identify the possibilities of development and promotion of soy products and to assure all the supply chain with qualitative non GMO soy.

The methodology used was desk research using data and information from legal sources with public access and the results of qualitative interviews of all participants of supply chain.

In order to perform the interviews a questionnaire was elaborated. The list of the participants at these interviews was received from the territorial subdivisions of the MAFI and from our activity as local inspection body. The producers of soybean were chosen by several criteria: farm size, production region, use of GMO or non-GMO seeds, etc. The most of the soybean producers which were interviewed were from north part of the country as there the soybean is preponderantly cultivated thanks to favourable climate conditions.

The study was developed in the context of lack of information infrastructures and accessible formats; this happens because of lack of central and territorial structures that should colect records and statistical data in the field. One reason for this is that for soy cultivation and its processing there is no an infrastructure and necessary financial support, as well as deficiencies in the legislative field. The main causes of stagnating development of this agricultural sector are the lack of strategy for growing and processing of soy, underdeveloped state of the livestock sector, lack of fodder enterprises, unstructured financing etc.

Given the fact that the production and processing of soy in Moldova is not yet a strategic direction in the agriculture, it is used general available information which is accessible for the public. In collaboration with some local authorities were obtained statistical data and qualitative information from performed interviewers. Also we applied the knowledge acquired during our activity in the country as Inspection Company.

History of soy cultivation

Agriculture plays an important role in Moldovan economy, particularly in terms of employment, exports and poverty reduction.

The sector grew by more than 35 percent in 2013 and by more than 8 percent in 2014, showing a potential for becoming a growth engine. However, a prolonged drought in 2014-2015 will reverse this trend. In recent years, agriculture has produced 12 percent of GDP and employed 28 percent of the labor force. The importance of agriculture is reflected in the prevailing share of agro-food exports, which are at 45–50 percent of total exports. This share is backed up by the export oriented agro-processing industry, which produces most of the agro-food exports and adds approximately 7–8 percent to GDP. In spite of its large size and major contribution to the economy, however, the sector exhibits the highest poverty rates. Low incomes from agriculture stem from its weak links to markets and the low competitiveness of outputs. However, data shows that large investments for agriculture in the past decade have not contributed to the sustainable growth of the sector and has not been the decisive factor in alleviating poverty and animal and plant production volume has not increased substantially in real terms. Great cause of the stagnation is inefficient allocation of financial resources and lack of information for the farmers about the benefits that can be obtained from soy production.


Fertile soils and annual rainfall generally provide favorable climatic conditions for cultivation offering opportunities for the development of agriculture as a true promoter of economic growth. However, the frequency and severity of climate related hazards (hail, frost, floods and droughts) have increased significantly over the last decade, having a negative impact on agricultural development.

Soybeans - which regained its multiple uses nowadays has a long history. It has been cultivated in China about 7000 years ago and by the eighteenth century is brought to Western Europe. At the end of the nineteenth century cultivating soybeans began in Moldova.

In soybeans were discovered precious and rich proteins that can replace meat. Today soy products are found in grocery stores and are used in dietary nutrition. At the same time, in addition to proteins, soybean contains a major proportion of oils, which is used in medicine or food/feed industry.

Short Review/Compilation of existing literature

During the elaboration of the study were studied and analyzed various sources of information, statistics, legislation, and data from local authorities, agriculture research studies, and interviews with producers, collectors and exporters.

Considering that SGS Moldova more than 20 years is involved in the whole production chain in the agribusiness sector, from growing up to delivery of the products, in the study there were used and data gathered in the process of inspection, expertise, testing laboratory of cereals and oilseeds, including GMO, organic certification, GlobalGAP, ISCC, GMP + FC in agriculture and others.


I. KEY POINTS OF SOYBEAN PRODUCTION AND ITS COMPETITIVENESS

1.1 Production of Soy seeds a. General system of soy seeds production in Moldova

The legal framework for the production, processing, quality control and certification, commercialization of seeds of plants is established by Law no. 68 as of 05.04.2013 on seeds.

The seed production system is a complex of scientific, organizational and agro technical measures that establish an interdependence relationship between registered economic agents operating in seed production of all biological categories and the responsible institutions in the field. The seed production system is elaborated by scientific institutions in agreement with the MAFI. Improvers or maintainers of varieties made available to registered economic agents, who multiply these varieties, specific technologies for seed production on a contractual basis, signing with them agreements for multiplication of varieties protected by patent and provides descriptions of morphological characteristics in accordance with International Union for the Protection of New Varieties of Plants (UPOV).

To produce seeds for placing on the market, economic agents must be enrolled in the Register of registered economic agents for the production and / or processing and / or selling of seeds. Registered economic agents must comply with production technologies, processing and selling of seed, legal provisions on protection of plant varieties protected by patent and bear responsibility for the quality of seeds.

Production and / or processing and / or seed trade is achieved by economic agents registered by NAFS in the Register, are subject to the following requirements:

1. for seed production: a) to dispose, with the right of possession and / or use of agricultural land - for field crops - at least 300 ha;

b) to dispose, with the right of possession and / or use of agricultural land with an area of 0.5 ha for greenhouses establishment (the establishment is allowed only on the basis of projects elaborated by specialized institutions);

c) to dispose a biological basis for reproduction (seeds, pips, branches grafted rootstock, fruit trees, etc.) or on seed production contract signed with the improver or the maintainer;

d) to dispose, with the right of possession and / or use, storage and processing facilities fitted with machinery and equipment for maintaining seed quality;

e) to comply with rules and crop rotation concerning production, conditioning, processing, storage and selling of seed;

2. for seed processing, to dispose, with the right of possession and / or use of: a) storage space, depositiong and conditioning; b) conditioning, drying, treatment, packaging, weighing and labeling equipment; c) means of transport, as appropriate;

3. for seed trade: a) to dispose, with the right of possession and / or use of storage and trade spaces fitted with machinery and equipment to maintain seed quality; b) to comply with the rules regarding seed quality.

The production of seeds, of propagation material and of the planting for pre-basic and basic biological categories lies on the improver and maintainer. The production of seeds, of propagation material and of the planting of basic biological categories, certificate, standard and trade lies on registered economic agents. Agricultural producers must comply with distances isolation from seeding sectors (greenhouses) under an agreement in writing between the parties. Seed producers have to keep Registry of entries and exits of seed to ensure their traceability.


b. Imports of seeds

It is allowed to import seeds of species listed in the Catalogue of Plant Varieties of the Republic of Moldova. Imports of seed varieties not listed in catalog shall be permitted endorsed by the MAFI if these are intended to:

a) scientific studies in the cooperation relations between the research institutions and higher education institutions of agricultural profile;

b) official tests conducted by the State Commission on Plant Varieties Testing; c) supply of a variety represented by less than 10 varieties in the catalog of varieties which are

included in the Common Catalogue of Plant Varieties of the European Union; d) organizing exhibitions and of demonstrative lots on limited surfaces (3 groups of up to 1 ha each

variety); e) Multiplication on a contractual basis, for export as full as seeds and seedlings, as well as a

commercial product. f) Remedy the lack of seeds in some crops, the list of varieties which are approved by the Ministry

of Agriculture and Food Industry.

Imports of seed are carried out with the following documents: a) Provisional certificate on the import of seeds and planting material issued by NFSA; b) Quarantine Permit issued by NFSA; c) Phytosanitary certificate, issued by the competent authority of the country of origin of plant seed.

Export of seed of varieties that are not registered in the catalog shall be based on import Opinion issued by MAFI. To obtain the Opinion of MAFI, the importer shall submit the following documents:

a) Application forms, written in free form for issuing Opinion of import; b) The contract for delivery of seed to establish clear requirements for the quality of seeds and

bonds supplier or an invoice where are specified such requirements; c) Phytosanitary certificate issued by the competent phytosanitary authorities of the exporting state.

After importing seeds, NFSA carry out inspection and certification of seed lots, with quality certificate issuance for seed or seedlings, according to the following provisions: For the import of seeds:

a. After the import, the trader addresses in writing or by telephone to the Directorate for Territorial Food Safety inspector responsible to inform about the imported seed lot for requesting a quality control certification;

b. Responsible inspector, accompanied by economic agent moving from imported seed storage site, verifies the conditions of storage, accompanying documents and their compliance with markings seed lot, laboratory samples as specified in the Annex. 5;

c. The minutes of sampler drafted by the responsible inspector and signed by both parties, the laboratory sample and application for certification should be sent to the laboratory entitled to obtain certificates of quality;

d. Import seeds should be necessarily certified regarding germination indices; e. From the time of application of analysis the Certificate of seed quality for internal use, shall be

issued within 7-21 working days, depending on the species tested;

It is prohibited the circulation of seeds and planting material for import without quality certificate issued by NFSA as established. The seeds are launched on the market in sealed and labeled packs, and particulars on labeling should reflect and attest their identity and capacity, including plant health. The chemical or biological treated seeds are inserted onto the market only in packaging that should be printed warning on a label about treatment. Seed may circulate in the internal market only in the original packaging and labels. Repackaging and relabeling register economic agents are allowed only under the


supervision of NFSA inspectors. Annually, economic agents who import seeds for sale, present to NFSA a report on consignments of imported seed and planting material:

- Autumn cereal crops - until November 30; - for other crops - until June 10;

Economic agents engaged in import of seeds for distribution purposes / commercialization inform in writing about the technological requirements for beneficiaries and hybrids varieties commercialized, about possible risks related to climatic conditions different from the country of origin and about possible sensitivity to diseases and pests. Economic agents that entered the country with imported seeds and planting material for the purpose of distribution / commercialization must have compulsorily input-output registers, showing monthly information on seeds and planting stock. Registered Economic agents for the commercialization of seeds are responsible on the quality of seeds placed on the market. Leading - suppliers, which place the seeds on the market through other distributors, issue copies of certificates of quality seeds, authenticated by stamp that distributors will have with him and will present in case of request.

Territorial responsible inspectors keep records of the checked seed and planting material for import, containing the following headings:

- Date of certification; - Importer; - Supplier (Producers or exporter); - Product type; - Culture and variety; - The quantity of seeds / planting material imported; - Destination of seeds.

Imported seeds are sold within the period indicated in document quality. In the case of expiry limit, the seeds will be checked again with the release of a new document confirmed. When the seeds are imported, the economic agents must present a non-GMO declaration. The import of genetically modified seeds is allowed only after the importation in accordance with Law no. 755-XV of 21 December 2001 on Biosafety.

c. Export of seeds

Export of seed is carried out with the following documents: a. Quality Certificate to export seeds, issued by NFSA; b. Phytosanitary certificate, issued by NFSA.

Export and reexport of seeds is allowed only after inspection of seed lots to all quality parameters (moisture, oil content, purity, foreign materials, etc), according to current regulations as follows:

a. The economic agent, after obtaining documents for field inspection, submits a request to the NFSA Seed Control Department to obtain the Declaration on lot number assignment and labels intervals;

b. The economic agent processes, packages and labels the seed lot under the supervision of the inspector in charge;

c. After packaging, sealing and labeling of seed lots, the operator calls Territorial Directorate for Food Safety control and certification of seeds for export;

d. Responsible inspector, accompanied by the economic agent moving to storage of seeds, check the conditions of storage, accompanying documents and their compliance with appropriate markings on the packaging, lab sampled in accordance with the requirements of national or international law;

e. The minutes sampler drafted by the responsible inspector and signed by both parties, the laboratory sample and application for certification are sent to a laboratory for obtaining the certificate of quality;


f. The final exported certified seed shall be tested in all quality indices with the export certificate, final uncertified seeds exported are labeled with gray labels with the inscription "final uncertified";

g. From the time of application of analysis the Certificate of seed quality shall be issued within 7-21 working days, depending on the species tested.

To obtain a certificate of quality of exported seeds, the exporter shall submit the following documents:

a. The application form for a certificate of quality of seeds to export; b. Certificate of quality, issued by an authorized laboratory; c. The delivery seed contract with the clear establishment of requirements for the quality of seeds

and bonds of supplier or an invoice where would be specified such requirements; d. Registration certificate for the production, processing and commercialization of seeds released by

NFSA. For varieties listed in the common catalog OECD and which have been subject to certification

according to OECD schemes, variety OECD certificate is issued and, upon request, it is possible to issue the ISTA Certificate (International Seed Testing Association) to an accredited laboratory.

d. Control and certification process of seeds

Seed control, the issuance of certificates and surveillance of registered economic agents is carried out by NAFS in accordance with the law about seeds. NAFS issues the following certificates:

a) export certificate of seeds quality; b) certificate of quality to imported seeds; c) certificate of quality / seed analysis report for internal use; d) certificate of biological value; e) certificate for propagating and planting material, fruit trees and berry.

Determination of the quality of seed is carried out by the NAFS at the request of the economic agent, after the submission of:

a) the laboratory sample taken from the state inspector in accordance with national and international requirements;

b) the minutes of sampling, compiled by state inspector and signed by both parties; c) the document for field inspection or certificate of quality issued previously; d) the documents proving the origin of imported seed.

Subject of seed control and certification are the following categories of seeds: a. pre-basic seed; b. basic seed; c. certified seed; d. commercial oleaginous seeds and fodder.

e. Costs of seeds quality tests

The tests on seeds are assured by the State Center for Certification of Seed Laboratory1 (according to the Government Decision no. 711 dated October 12, 2015 was accepted the proposal of MAFI on the organization of the State Enterprise “Center of quarantine, identification, arbitration and disinfection of seed laboratory” by the absorption of State Enterprise “Republican center of applied pedology” and the State Enterprise “Center of standardization and determination of quality of fooder and cereal products”, which will be the successor of rights and obligations of businesses acquired, with the

1 Accredited ISTA and can issue ISTA orange certificates


change of the name in State Enterprise “National center for verification and certification of crop production and soil”). The tests performed for soy seeds are as per following parameters – seed germination, moisture, purity, foreign materials content including other seeds, weight of 1000 seeds, growth vigor, seed vigor, seed health. The costs for presented parameters in complex are about 1000 MDL.

The laboratory, by the end of the current year, would reduce by 20% the rates for repeated testing and certification of new evidence sample from the same lot. At the next stage local laboratories intend to: develop an electronic system for online submission of applications for sampling, increase the validity of the results of laboratory investigation, reduce the number of analyzes using traceability previously tested, amend the work program for economic operators in harvesting periods.

f. Soy varieties included in the Register of Plant Species in the Moldova

The Catalog of Plant Varieties for 2015 year includes 27 varieties of soybean. The varieties are classified by species and included the following information: registration number (column 1), variety denomination (column 2), originator’s number (column 3), maintainer’s number (column 4), year of registration (column 5), year of second time registration (column 6), some morphological and commercial characteristics (columns 7–13), (see annex 1). The Catalog of Plants Varieties doesn’t include genetically modified varieties (GMO).

The varieties under the Protection of Plant Breeder Rights are indicated by the symbol B and their use without the authorization of holder is a violation of Plant Breeder Rights, deriving from the law no. 39 – XVI/2008 on the Protection of Plant Varieties in Republic of Moldova.

According to the Law on Seeds no. 68 of 05.04.2013, supplementation of these varieties may be completed by imports of varieties, which can be found in the Common Catalogue of Plant Varieties of the European Union approved by the MAFI.

The Catalog of Plant Varieties are addressing to competent who are responsible by import, export, production and commercialization of seeds and planting material, economic agents, physical and legal persons who use the plant varieties.

Table 1 Soybean (Glycyne max (L.) Merrill) – 27 varieties

Reg

istr

atio

n nu

mbe

r

Variety denomination

Orig

inat

or’s

nu

mbe

r2

Mai

ntai

ner’s

nu

mbe

r

Yea

r of

re

gist

ratio

n

Yea

r of

sec

ond

time

regi

stra

tion Characteristics

(see annex 1)

1 2 3 4 5 6 7

1 2 3 4 5 6 7 8 9 10 11 12 13 1. 0263086 Anastasia 238 238 2015 R b 03 S 2. 0261875 Annushka 238 238 2010 R b 03 S 3. 0263087 MAVCA 238 238 2015 R b 03 S 4. 0262756 TANAIS 16 227 2014 R b 03 S 5. 0262753 CHEREMOŞ 16 227 2014 R b 04 S 6. 0261791 DEIA (S–28–06) (B) 1 1 2010 I-II b 04 S 7. 0261488 ELDORADO 29 266 2008 II b 04 S 8. 0261171 ENIGMA (B) 1 1 2008 III b 04 S 9. 0263401 ES-MENTOR 160 160 2015 R b 04 S 2 238 – Scientific breeding and seed company ,,Soevyi vek”, 29 G, Murmanskaya street, Kirovograd, Ukraine, 25006 16 - Semences Prograin Inc., 145, Bas de la Riviere Nord, St-Cesaire, Quebec, Canada, IOL 1 TO 227 - "We Trade” S.R.L. MD – 2019, R. Moldova, or Chişinău, str. Grenoble 128 1 – Public Institution „Research Institute of field crops „Selectia”, Balti, 28, Calea Iesilor street 29 – Plant Breeding and Genetic Institute UAAS Ukraine, 36, Odessa, 3, Ovidiopolskaya street 266 - CÎ ,,Agrostoc", Chisinau, 1, Mesager str., of. 701 160 - Euralis semences, Domaine de Sandreau, 31700, France, Mondonville


10. 0262754 KORSAK 16 227 2014 R b 04 S 11. 0262755 KUBAN 16 227 2014 R b 04 S 12. 0262757 TEREK 16 227 2014 R b 04 S 13. 0263365 VIDRA 1173 117 2015 R b 04 S 14. 0261032 ZODIAC (B) 7 7 2004 R b 04 S 15. 0261541 ALBIŞOARA (B) 7 7 2010 R b 05 S 16. 0260421 ALINA (B) 7 7 2002 II–III b 05 S 17. 0261543 AMELINA (B) 7 7 2010 III b 05 S 18. 0260209 AURA (B 1 1 1999 2000 R b 05 S 19. 0262873 BANJO CS (CSB 939) 268 269 2014 R b 05 S 20. 0263023 BISER 117 117 2015 R b 05 S 21. 0261542 CLAVERA (B) 7 7 2010 I–II b 05 S 22. 0263024 DANA 117 117 2015 R b 05 S 23. 0261770 GALINA 154 227 2010 R b 05 S 24. 0261026 INDRA (B) 1 1 2006 II–III b 05 S 25. 0272404 MAGIA (S-29-09) (B) 1 1 2013 II-III fr 05 S 26. 0262688 NADEJDA (B) 7 7 2014 R b 05 S 27. 0261769 TIHANA 154 227 2010 I–II b 05 S

Source: Catalog of plant varieties for year 2015, Chisinau According to the above table, there are used seeds of 3 types of maturity level (column 10) – early

(03), mid early (04) and medium (05). The most part (13) of varieties has medium maturity level, 10 – mid early and only 4 – early maturity level.

g. Classification of soy seeds and Classification of quality

By varietal purity, soybean seeds are divided into 2 categories - I and II, which must meet to the requirements specified in the table

Table 2 Classification of soy seeds by varietal purity Category Purity,%, no less I 99,50 II 98,00 Source: GOST 9669-75

4

By sowing qualities, soybean seeds are divided into three classes - 1, 2, 3, which must meet the requirements specified in the table:

Table 3 Classification of soy seeds by sowing qualities Class Purity, %,

no less The content of seeds of other plants 1 kg pcs., no more than

The content of the seed,%, no more than, affected

Germination, %, no less

Moisture, %, no more

Total Including weeds

Fusariosis Cotyledon bacteriosis

1 98,00 10 5 5 10 90 14,0 2 95,00 15 5 5 10 85 14,0 3 95,00 25 15 5 10 80 14,0 Source: GOST 9669-75

117 - Strube GmbH & Co. KG, Hauptstrabe 138387 Söllingen Sollingen Postfash 1353 BRD 38358 Schoningen 7 – Institute of Genetics, Physiology and Plant Protection of Academy of Sciences of Moldova, Chisinau, 20, Padurii 268 – Caussade Senences SA, ZI de Meaux, 82303, Franţa 269 – SC Caussade Semences est Europa S.R.L. Bucuresti, Romania 154 – Institute of field crop and vegetable production Novi Sad, Serbia, 21000, M.Gorkog 30 4 This standard is approved by the MAFI’s order no. 81 dated Mat 18, 2007


h. Availability and penetration of GMO seeds

Currently, is widely discussed that in Moldova is planted transgenic soybean. In order to clarify this matter, last year, the MAFI has created a working group that was collecting samples from 15 locations where soybean is planted at the beginning of and during the growing season - June to August. These samples were sent to Lithuania for examination. From there came a negative answer to all samples.

In the EU, from 1st January 2015, according to the decision of the European Parliament, each country decides whether to allow or prohibit the cultivation of transgenic products within their territory. Since in our country, the Law on Biosafety (2003) has been approved, Moldova does not change its position on transgenic plant growth - their planting is prohibited.

However, when the seeds are imported in the country, local authorities do not have technical possibilities to perform laboratory tests on GMO identification (as there is no local laboratory with such capacity and the laboratory tests abroad are expensive).

In 2014 was opened a laboratory for testing pesticides residues in plants, soil and non-animal products, but concerning the opening a laboratory for determination of GMO there is the information that thanks to financial resources received from Romania and Israel, the local authorities equipped a laboratory5 with necessary equipment for testing GMO, nowadays the laboratory is preparing to get the accreditation according to ISO 17025 in order to start the work in this field, About the deadline of the project nothing is known.

i. Organic

According to official data there is no information regarding the production or import of organic soybean seeds.

1.2 Cultivation of Soy b. area, zones of soy production, some figures and statistics

Global agricultural production in all categories of producers (agricultural enterprises, farms and households6) in 2015, according to preliminary data, amounted to 86.2% against of 2014. The reduction of global agricultural production was driven by increased livestock production by 2.2% and a decrease of crop production by 22.6%. A significant negative influence on the pace of physical volume of agricultural production in this year compared to the period of 2014 had decreased the harvest of crops as impact of extremely unfavorable weather conditions (drought).

Analysing the evolution and the structure of sown areas in dynamic it can be observed important changes over the years. From 1980 the total sown areas with crops has been steadily declining, the same situation it is observed for the industrial crops as well. For that period the soy has a very insignificant share in the agriculture having an area lower than 2% from total area. From 2005 the share of soy starts to increase as the industrial crops increase their importance as well. In the last years the areas with soy are maintained at the level of 60 thousand ha.

5 GD 711 of October 12, 2015 regarding the organization of some state enterprises 6Agricultural enterprises include all enterprises and organizations with legal personality being producers of

agricultural products, possessing or using agricultural land and agricultural activity, irrespective of legal form and their property. Farms are form of entrepreneurship held under land use and property privately owned or used by the farmer dealing with the production of agricultural production. Households considered as producing of agricultural output by their own work submitted by citizens or their family members (especially the loads around the house) in order to meet food needs and other needs. (http://www.statistica.md/pageview.php?l=ro&idc=302&id=2245)


Table 4 Sown areas with industrial crops 1980 1985 1990 1995 2000 2005 2010 2011 2012 2013 2014 20157

Sown areas – total,thousand ha 1839 1790 1733 1530 1527 1540 1460 1447 1468 1494 1503 1500.7 Industrial crops8, thousand ha 373 339 295 255 330 358 388 412 404 400 438 433.7 of which: Soy,thousand ha 11 11 27 3 12 36 59 59 60 42 55 67.8 % of soy from total areas 0.6 0.6 1.6 0.2 0.8 2.3 4.0 4.1 4.1 2.8 3.7 4.5

Source: NBS9

In 2015, total sown areas were 1500.7 thousand hectares, which represents 45.03% of the total

surface of the country. According to preliminary data, in 2015, from total planted area, about 63,4% of sown areas are

cultivated with cereals and leguminous crops, industrial crops (28,9%) of which soy – 15,63% (4.5% from total sown area). This broadening of the areas is influenced by the increasing importance of technical crops both in the internal market and on the world.

Figure 1. Evolution of sown areas with industrial crops and soy in the period of 1980 – 2015, ha

Source: NBS

Evolution of sown areas with soy is increasing in the last 3 years, before being characterized by fluctuations in the background of drought and floods in previous years. In 2015 were sown areas with soy with 60% more than in 2013. This increase in sown areas is because in 2014 was obtained the best yield per hectare in recent years and so producers decided to increase sown areas with soy in the hope of a better harvest in 2015. Also the good price export is one of the factors that led to the decision.

7 According to preliminary data 8 Industrial crops according to NBS – sugar beet (industrial), sunflower, rapeseed, soy, tobacco, 9 Starting with 1993 the statistic data does not contain the information from districts from the left side of the Nistru and municipality Bender

0

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soy


Figure 2 Evolution of the area sown with oilseeds in the period of 2006 - 2015, thousand ha

Source: NBS Gross harvest and yield. Analyzing the period of last years, in 2012 and in 2015 there has been a sharp decrease of soybean harvest due to drought in those years. The best gross harvest were obtained in 2010 and 2014 due to very good yields per ha. In 2013, although it was sown an area with 18,000 ha less, the harvest was 65.5 thousand MT, increasing by 36% compared to 2012.

Figure 3. Evolution of gross harvest of soy, thousand tones

Source: NBS

Analysing by categories of producers, the agricultural enterprises have the biggest share in total groos harvest of soy – 84%, followed by the farms. The households have a very insignificant share as the sown areas are very small.

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Industrial crops 400,7 368,2 342,1 365,4 388,3 412,4 403,6 399,5 437,7 433,7

Soy 55,7 50,5 30,5 48,8 59,0 58,9 59,7 41,6 54,9 67,8

Sunflower 287,4 233,6 228,0 226,6 252,4 277,0 299,3 297,7 319,7 329

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1980 1985 1990 1995 2000 2005 2010 2011 2012 2013 2014 2015


Figure 4 Gross harvest of soy, by categories of producers, thousand tonnes

Source: NBS

In 2014, with an increase in sown areas with soybeans (32%), and the harvest increase - by 66.8% reaching 109,300 MT of soybeans in all categories of producers. That year was obtained the best yield per hectare in recent years, soybean average yield being 2.07 MT / ha.

If in 2014 was obtained the best yield of all years, the current year registered the lowest yield from all previous years – only an average of 7 q/ha in all categories of producers, decreasing with 65% in comparison with last year.

Figure 5. Evolution of yield of soy, t/ha

Source: NBS

By categories of producers the yield per ha does not have a stable structure being different year to year. Despite of this, the agricultural enterprises have the largest share.

85,9

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1980 1985 1990 1995 2000 2005 2010 2011 2012 2013 2014 2015


Figure 6 Yield of soy, by categories of producers, t/ha

Source: NBS

From the territorial point of view, soybean cultivation is uneven. Most of the areas sown with soybean are in the north, occupying 96% of the areas in 2015. The top 5 districts with the largest areas of soybean are: Edineţ (15.80% of all of the North), Rîşcani (14.24%), Drochia (14.20%), Briceni (14.07%) and Ocniţa (10.60%). This region is more favorable for soy cultivation by weather conditions and natural resources.

Table 5 The area sown with soy, gross harvest and yield per region in 201510 Developing regions Sown area, ha Harvested area, ha Gross harvest, t Yield, t/ha

TOTAL 64559,50 55888,50 37505,26 0,67 NORTH 62146,50 53485,00 36031,36 0,67

CENTER 2292,00 2253,00 1431,00 0,61

SOUTH 96,00 50,00 43,20 0,86

UTA GĂGĂUZIA 7,00 0,00 0,00 0,00 11

Source: MAFI

Central area occupies a share of only 3.5%,

Soldanesti having the largest area - 1492 ha.

South area is an area characterized by unfavorable soybean cultivation, which is evidenced by the small share in the total area of soybean - 0.15%. In 6 districts in the country (4 in Central area and 2 in the South area) soybean cultivation takes place in areas less than 50 ha, in 9 districts soybean is not grown at all. c. Soy Growth Calendar

10 The preliminary data is for agricultural enterprises and farms 11 North region – Briceni, Ocnita, Edinet, Donduseni, Riscani, Drochia, Soroca, Falesti, Balti, Floresti, Singerei, Soldanesti; Center region – Ungheni, Telenesti, Rezina, Nisporeni, Calarasi, Orhei, Criuleni, Hincesti, Chisinau, Ialoveni, Anenii Noi; South region – Leova, Cimislia, Causeni, Stefan-Voda, Cantemir, Cahul.

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2010 2011 2012 2013 2014

Agricultural enterprises

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Figure 7. The regions of Republic of Moldova


Table 6 Soy growth calendar in Republic of Moldova # Activity IX X XI XII I II III IV V VI VII VIII IX X 1. Fall tillage 2. Winter period 3. Fertilizers application 4. Spring cultivation 5. Herbicides application 6. Seeding 7. Crop protection 8. Foliar feeding 9. Plant drying 10. Harvesting Some description of growth calendar (the number of description corresponds with the stage number):

1. Milling of previous crop remnants, tillage, and moisture saving cultivation. 2. No activities. 3. Fertilizers application. 4. Cultivation, moisture saving cultivation, preparation of the soil. 5. Burn down and pre-emergence herbicide application. 6. Preparation of seeds, seeding. 7. Post herbicides, foliar insecticides and fungicides application depending on field conditions. 8. Micro-nutrients application. 9. Preparation for harvesting, desiccation.

10. Harvesting, transportation, filtration and drying of beans.

d. Infrastructure and technology of cultivation

Infrastructure. In the cultivation process of soy it is used common technique for annual field crops. The technology specifies that plowing of the fields for soy should be done at a depth of about 25 cm in the fall and 30 cm in the summer. The fields must be leveled. The machinery for cultivation must be able to collect the soybeans at a height of minimum 25 cm from the ground. The used machinery is originally from Belorussia, Germany, Japan, Italy, etc.

The storage of harvested soybeans occurs through two technical facilities - elevators (as a legal entity) and producers' own warehouses. • The elevators are located in regional centers, which are technically equipped for all operations required for the handling and storage of crops, including soybean. The total capacity of storage per country is about 1382500 MT. The main territorial centers where the elevators are located are – Causeni (total capacity of storage – 141400 MT), Rogojeni (total capacity of storage – 19800 MT)12, Otaci (total capacity of storage – 21800 MT), Donduseni (total capacity of storage – 26400 MT), Lipcani (total capacity of storage – 30400 MT), Drochia (total capacity of storage – 55700 MT), Cupcini (total capacity of storage – 71100 MT), Balti (total capacity of storage – 40000 MT), Glodeni (total capacity of storage – 4600 MT), Iargara (total capacity of storage – 35800 MT), Chisinau (total capacity of storage – 64900 MT), Rediu Mare (total capacity of storage – 42000 MT), Ceadir-Lunga (total capacity of storage – 117200 MT), Comrat (total capacity of storage – 83000 MT), Lapusna (total capacity of storage – 48000 MT), Orhei (total capacity of storage – 39400 MT), Gura Camencii (total capacity of storage – 93800 MT), Vulcanesti (total capacity of storage – 42700 MT) etc. At the collection points (elevators) for each quantity of stored soybean of each provider are performed laboratory tests (within the elevators) against

12 The information is dated 2010, there can be some changes


organoleptic parameters, infestation, moisture and impurities. Within elevators the soybean is processed (passing through the separator for the removal of the impurities (grain, minerals) and passing through the dryers (to bring soybeans to the required moisture within regulatory requirements)). These elevators are equipped for long time storage of soybeans maintaining the quality indicators. The costs of storage and processing in such elevators are quite high, so some manufacturers have built their own deposits or using old Soviet deposits. • The warehouses have the dimensions of 60x20 m and are found in most rural localities (where they were kept and not destroyed). Also the buildings used in the past for large horned livestock have been adapted for storing of the cereals and oilseeds. The warehouses built by the producers have their own technical facilities for sampling and trucks loading, where it is possible, the warehouses are built near the railway. The warehouses are used to store soybeans in the short term.

The expansion of arable land, the decrease of woodland areas, and pastures, the increased erosion on slopes and the desertification had a negative impact on the hydrological regime of the territory. The main sources are rainwater and water from the snow melt. Water resources are comprised of the surface waters of rivers, lakes and groundwater. A total area of 76,214 ha covered by water, including ponds (36,718 ha). The largest water resources are trans-boundary rivers: Nistru river (about 57%) and Prut river (10%). The quality of the water from Nistru and Prut rivers is acceptable and can be used for different purposes. The volume of surface water and river flow decreased. The amount of surface water decreased by 30-50% compared to the annual average for several major river areas (such as Nistru and Prut) and 20-40% for small areas and river basins. Rivers and ponds are usually polluted, having a high mineralization. From groundwater reserves only 50% meet the requirements of quality indicators. For irrigation purposes, only the water from rivers is suitable for use, while the water from inland ponds is mainly unsuitable. A high grade of mineralization and higher water deficit is observed in the southern part of the country.

Moldova’s irrigation sector is in poor condition and hinders the development of the agricultural sector. Currently the Republic of Moldova has 144,600 ha of irrigable land (230,000 hectares in 1990). In total, in the country there are 78 centralized irrigation systems that are located on an area of 131-688 ha. The irrigation systems were operated for 35-50 years. About 60% of the systems must be rehabilitated (affected pumps, electrical and control panels, basins, pipes of water etc.). Currently on average, there is only 10-20% of irrigable agricultural land, which is actually irrigated. Organizational changes, land parceling, privatization of the hydro-technical heritage have caused losses of integrity and complexity of hydrological systems, significantly reducing the volume of agricultural production on irrigated land. As these factors are addressed and rectified it is highly likely that demand for water in the irrigated sector will increase substantially, especially given the consequences of the climate change on rain-fed agriculture. Declining precipitation and increasing irrigation water demands mean that climate change will lead to conflicts over water resources, leaving a wide gap in unmet irrigation demands if no adaptation measures are implemented.

Poor access to irrigation services due to deterioration of state-run irrigation systems over the last decade is a serious impediment in the process of transition to higher value agriculture and consequently higher returns. This has occurred due to the lack of public investments and lack of institutional reforms since 1991 and has resulted in a situation where, in 2007, only about 16 percent of the irrigable land actually received irrigation and only with about 50 percent of the required water quantity. This caused crop yields to drop much below the irrigated yield potential. Especially against the background of the expected impact of climate change on Moldova (in particular, more erratic and overall less rainfall), effective irrigation with high water-use efficiency will be key to agricultural development. It will be important to support rehabilitation/reconstruction (including lining and piping) of all central irrigation systems along the rivers Nistru, Prut and the other ones placed along artificial or natural lakes with good


quality water for irrigation. Urgently is a need for identification of possibilities for building additional capacities of water capturing/accumulation from rains, snow melting etc.

Road network are in probably the poorest condition among all physical infrastructures. An assessment carried out by the Government in 2006 estimated that only 7% of the road network could be considered to be in a good or satisfactory condition, while the remaining 93% was in a bad or very bad technical state. The state of local roads was found even worse with only some 2% of assessed roads considered in a reasonably good technical state. Although nearly every village in Moldova is accessible through asphalt roads, the bad condition of local and village roads causes damage to vehicles, as well as to the transported products (fruits, vegetables, milk, etc.). This obviously increases transportation costs, but also adversely affects production quality, quantity and sales prices throughout the supply chain.

However, an improvement in the condition of roads has occurred in recent years in connection with the significant increase to the road fund. But these contributions are not sufficient to restore the entire road network to an appropriate state.

Considering that the Moldovan economy is based largely on agriculture and agricultural products, a solid road infrastructure, a road transport functional, multimodal logistics centers will allow the farmers to sell their production to local and foreign markets.

Technology of cultivation Biological peculiarities

Soybeans germinate at 7-8 degrees C in the soil. In the vegetative growth phase, the roots grow faster than the aerial part, after which is reduced gradually ending before physiological maturity. Nodules occur after penetration of Rhizobium japonicum bacteria into the root tissue. It follows a rapid multiplication of bacteria and a division of infected host cell that marks the beginning of fixing atmospheric nitrogen. The maximum activity occurs at 25-35 days after the appearance of nodules, and then gradually decreases nitrogen fixation, ending at 50-60 days after infection. Requirements towards climate and soil

The average of daily water consumption of soybeans is higher during blooming phase - forming pods and the lack of water during grain filling cause large decreases of production. The preferred soil for soy is with a neutral reaction, or between weak acid to weakly alkaline with loam - sandy till at clayey. Heavy textured soils with stagnant water, acidic, sandy or salty are not suitable for soy. It is ascertained that very favorable area includes only part of the northeast of the country and along Mures and Tirnava meadows. Favorable Zone (I and II) consists mostly of arable land in our country. By irrigation in southern and eastern areas of the country is creating favorable conditions for growing soybeans. Rotation

Soybeans are not demanding as precursory plants, and can be grown after cereal straw and row. Give good results after autumn wheat and barley and after hoeing sugar beets and corn by early hybrids. With sunflower, rapeseed, soy has some common diseases. It also recommended cultivating less after flax, hemp and spring cereals. Being a good precursory plant for most crops, even for early varieties and for winter wheat, soybean will not be cultivated in monoculture. Fertilization

Over 50% of nitrogen the plant procures by symbiotic way, the lack of nitrogen being felt especially in the first part of vegetation till begins to the function of the symbiotic system. On chernozems for non irrigated cultures are applied doses of 50-60 ka / ha nitrogen; 50-80 phosphorus kg / ha, etc. and potassium fertilization is required only on soils with low content of this element or for high productions. Amendments are necessary on brown soils and podzolic with pH below 5.5, where soy does not give results if is not applied 4-6 t / ha of limestone flour every 6-8 years. Soil works


Summer or autumn plowing (at 20-25 cm depth) and preparation of seed bed. Leveling the ground and the quality of seedbed (prepared on depth of 5-6 cm with combiner) influences the uniformity of the appearance and plant density. Seeds and sowing

The seed must have the purity greater than 97% and minimum 85% of germination. To prevent diseases that are transmitted through seeds and pests that attack plants from germination – appearance, it should be treated with specific products. The effect of soybeans inoculation has emerged from numerous experiences in our country and abroad, as so specific nitragin treatment should become a compulsory measure in the culture of this plant. It will use 3-4 bottles for the seed quantity per hectare. Inoculation will be made after 10 days of treatment with insecto - fungicide13 and 2-4 hours before sowing under the conditions indicated in the instructions that come with nitragin vials. In the case of fungicide seed treatment is recommended to apply the suspension of bacteria (Nitragin - soy) directly into the ground, with the seeding. Soybeans are seeded when the soil temperature at seeding depth reaches 7-8 degrees C. The density of sowing is 60-65 germinate seeds / sq m for early and mid early varieties and 55-60 germinate seeds/ sq m, for mid late and late varieties, in order to achieve at maturity 45-50 plants / sq m. It is recommended soybean sowing in rows spaced at 45-50 cm, or in lanes of 3 rows on 45 cm, with 60-70 cm between bands. Were obtained good results in soybean seeding at small distances between rows (25-30 cm and 12.5 cm), but only in the case of insurance of optimal quantities of water and of combating weeds using herbicides correctly. Sowing in rows spaced at 60-70 cm is practiced in cases where no herbicides are used, and culture maintenance is done by mechanical works. Sowing depth is 3-4 cm on light soils and 2-3 cm on heavy soils, and to ensure uniformity of depth. The amount of the seed per hectare is calculated depending on the variety and the amount of semen should be between 70-100 kg / ha. Care work

The works until appearance consist in weed control and loosening soil through mechanized and manual works. Herbicides are executed using specific products and recommended doses of preemergence (Trreflan, Sencor, Stomp) or postemergence (Basagran, Flex, Blazer). Mana soy is controlled by 2-3 treatments with cupric products having effect against bacterial diseases. Pests (larva of the fly ash etc.) are preventive countered with 30-40 kg / ha Lindatox 3 built-in at seedbed preparation. The mite Tetranychus urticae (red spider) which causes defoliation of plants is controlled by Sinoratox 25 EC (0.5kg / ha). Soybean irrigation is needed in spring and dry summers, increasing the effectiveness of herbicides also applied to the soil. Water consumption increases the occurrence of soybean flower buttons and remains high until the filling grains. Harvesting, production, storage

Harvesting begins when grain moisture is below 15% and over 70% of pods are dry. At maturity soybean leaves fall, facilitate the harvesting.

e. MAFI (and other) strategies for soy cultivation

In the approved documents by the authorities in the recent years, including the last Government Decision on approving the National Strategy for Agricultural and Rural Development for the years 2014-2020 no. 409 dated June 04, 2014 does not specify a strategy, vision or program on the development of soybean cultivation in Republic of Moldova. As the production of soy is not yet a strategic direction, there are no special strategies or development priority for this sector.

f. GMO vs non-GMO: who is doing non-GMO?

13 In order to export to EU, only pesticides registered in the EU may be applied

http://www.eppo.int/PPPRODUCTS/information/information_ppp.htm


24 economic agents from 246 produce GMO soybean. As per their declaration, they buy the seeds from local market despite the fact that there are no registered producers of GMO seeds according to the NFSA. It seems that they have possibility to buy these seeds from "black" market. Some declared that this is the last year when they produce GMO soy as they didn't see some differences in the yield of GMO soy comparing with conventional. The quantities produced by these operators are between 10 and 100 MT of soy (having small sown areas with this crop).

g. Organic

Moldova is the country in the Eastern Europe, Caucasus and Central Asia region (EECCA) with the most developed organic sector, both commercially and in terms of policy and government involvement. The organic sector does not have a long history, but combined efforts by NGOs, private investors and the Government of Moldova has led Moldova exporting to the European Union around 81 thousand tons of organic products at a value of US $32 million in 2013.

For our country, organic farming is a relatively new direction in agriculture. In 2000, the Government adopted the national concept of organic agriculture, production and commercialization of organic food and genetically unmodified, to which the company SGS Moldova has actively participated. In 2001 SGS Moldova conducted a feasibility study to assess the potential for Republic of Moldova to start the program of implementation of organic production, which was used to develop the concept of Republic of Moldova in the field of organic agriculture.

Figure 8 Export of organic products, MT

Source: NBS

The market of Moldovan organic products is mainly the European Union. 95 percent of vegetal organic products (cereals, oilseeds and protein, berries and herbs) are exported to Germany, Belgium, Italy, Czech Republic, Slovakia, Poland, Denmark, Switzerland, Netherlands and Great Britain. In 2006 the export volume of organic products was 4165 tones, in 2013 it raised up to 80 thousand tones.

The area of certified organic land represents almost 2 percent of the total arable area. Moldova has had an organic marketing law and the implementing regulations since 2006.

1373 2486 36754165 6750

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Figure 9 Evolution of organic surfaces, ha

Source: MAFI

In Moldova, according to statistics from 2014, there were included in organic production about 59 000 ha, including 29,000 ha - in conversion.

Until 1st January 2015, in this production were employed 58 economic agents (of which about 25 have worked in conversion) and in the first three months of this year there were another 23 enterprises (MAFI).

During the last years were registered five certification bodies, but according to the information from NAB on 01/12/2015 were only 2 accredited certification body14. Also, the local economic agents can request organic certification from foreign CBs (Lacon, BCS OKO (Germany), Control Union Certifications BV (Netherlands) ECOCERT SA (Romania), ICEA (Italy) etc.), these CB should inform the Government about their activity in the country, but it is not respected, so the authorities do not have update information on certified enterprises and areas by these CBs.

Last year, our country was visited twice by EU inspectors to check the development of ecological agriculture and its results. Based on these reports, Moldova gets the opportunity to be recognized as one of the countries in the process of developing, implementing and developing the organic agriculture system.

Regarding organic soy, in 2014 were certified15 464.36 ha including 14.96 ha of soy in first year of conversion and 78.80 ha in the second year of conversion.16 In 2015 were produced 210 MT of organic certified soybean within 3 operators, certified by local certification bodies.

h. Costs of production, input factors, price levels

The cost of production of soy beans are presented below, calculations were made by the researchers from local research institute. According to the table, the costs are presented for 2 types of agricultural enterprises – large (with areas over 25 ha) and medium (with areas between 10 and 25 ha). The small enterprises and households are not included in the scheme of calculations. The table no. 7 presents the normed costs for soy beans production for 2014 year.

14 http://www.acreditare.md/public/files/registre/Registru_OCpr_eco_modif_12_din_12.10.2015.pdf 15 Only by local accredited CB 16 According to MAFI

80 168 250 715

7345

11755

16585

22102

32450

61280

51681

0

10000

20000

30000

40000

50000

60000

70000

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013


Table 7. The normed cost of soybeans production, MDL, 2014

Specification

Large enterprises Medium enterprises Yield, q17/ha Yield, q/ha

10 15 25 10 15 25 ha q ha q ha q ha q ha q ha q

1. Variable inputs – total 5288 528,80 6468 431,21 7610 304,41 6091 609,10 7587 505,80 9089 363,56 including: 1.1. Seeds 891 89,10 972 64,79 1065 42,59 992 99,2 1081 72,04 1231 49,25 1.2. Fertilizers - - 485 32,36 812 32,48 - - 534 35,59 894 35,75 1.3. Chemical preparations

417 41,70 514 34,29 770 30,80 505 50,50 620 41,35 923 36,94

1.4. Mechanized operation 3530 353,00 3882 258,79 4190 167,59 3638 363,80 4241 282,72 4777 191,10 1.5. Manual operations 296 29,60 426 28,40 552 22,10 836 83,60 963 64,17 1084 43,38 1.6. Other variable inputs 154 15,4 189 12,59 221 8,85 119 11,90 149 9,92 179 7,14 2. Constant inputs – total 1300 130,00 1548 103,17 1784 71,45 855 85,50 1024 68,26 1189 47,56

including: 2.1. Depreciation of fixed assets 53 5,30 62 4,15 69 2,75 31 3,10 41 2,73 48 1,93

2.2. Fees and taxes 179 17,90 179 11,90 179 7,14 179 17,90 179 11,90 179 7,14 2.3. Rent payments 910 91,00 1112 74,15 1309 52,34 524 52,40 653 43,52 781 31,25 2.4. Other constant direct inputs

159 15,90 194 12,96 228 9,11 122 12,20 152 10,11 181 7,25

3. Direct inputs - total 6588 658,80 8016 534,38 9394 375,76 6946 694,60 8611 574,06 10278 411,12

4. Indirect inputs 198 19,80 240 16,02 282 11,28 138 13,80 172 11,47 206 8,24 5. Normed cost 6786 678,60 8256 550,49 9676 387,04 7084 708,40 8783 585,53 10484 419,36 Source: INCE

The costs of production are calculated for 10, 15 and 25 ha and q for both large and medium enterprises. Analyzing the costs of production for each type of enterprise, it is obvious that the costs are bigger with about 300 MDL in case of medium enterprises. So, if for cultivation of 15 ha with soy the large enterprises pay with 22% more than for 10 ha, the medium ones pay with 24% more in the same case. Respectively, the costs are directly proportional with cultivated area – the bigger areas are, the bigger are the costs of production, but the growth rate for each additional 5 ha is indirectly proportional with the costs.

The table 8 presents the normed costs also for auxiliaryproducts after producing of soybean, i.e. straws.

Table 8. Normed consumption of 1 ha of soy beans, MDL, 2014

Specification Large enterprises Medium enterprises

Yield, q/ha Yield, q/ha 10 15 25 10 15 25

1. Variable inputs – total 5686 6955 8183 6549 8158 9773 Including: 1.1. Seeds 958 1045 1145 1067 1162 1324 1.2. Fertilizers 522 873 574 961 1.3. Chemical preparations 448 553 828 543 667 993 1.4. Mechanized operations 3796 4174 4505 3912 4560 5137 1.5. Manual operations 318 458 594 899 1035 1166

17 q (quintals) = 100 kg


1.6. Other variable inputs 166 203 238 128 160 192 2. Constant inputs – total 1398 1664 1918 919 1101 1279 including: 2.1. Depreciation of fixed assets 57 67 74 33 44 52 2.2. Fees and taxes 192 192 192 192 192 192 2.3. Rent payments 978 1196 1407 563 702 840 2.4. Other constant direct inputs 171 209 245 131 163 195 3. Direct inputs - total 7084 8619 10101 7468 9259 11052

4. Indirect inputs 213 259 303 149 185 221 5. Total inputs 7297 8878 10404 7617 9444 11273 Including: 5.1. for basic product 6786 8256 9676 7084 8783 10484 5.2. for auxiliary product 511 622 728 533 661 789 Source: INCE

Dynamics of average selling prices actually formed for production in agricultural enterprises and farms, during 2014 and the first two quarters of 2015 are fluctuating. In 2015, the average sales prices declined in the first two quarters with 11% and 16% respectively. The prices depend on the demand and the prices at the international burses.

Figure 10 Average sales prices for soy actually formed for agricultural production in agricultural enterprises and farms18, MDL/ton

Source: NBS

Prices for agricultural products and inputs increased substantially in the last decade. Agricultural product prices increased by 70% from 2000 to 2010, while the prices of agricultural inputs increased by 58% in the same period. Since most of the tradable agricultural inputs are imported, Moldovan farmers face the world prices for their inputs, but are not able to receive the world prices for their products. Moreover, agricultural product and input prices show a high volatility, mainly around 2007. Input price indices showed a very rapid growth in 2007-2008 and 2010, which cannot be explained only by input increase on the international market and might be explained by anti-competitive practices in the input market in Moldova. Aside being subjected to input price variability, small holders are also subject to

18 land surface of 50 ha and over, according to NBS

61026598

5527

45805405 5526

0

1000

2000

3000

4000

5000

6000

7000

I II III IV I II

2014 2015


output price volatility. In an environment where smallholder farmers are unable to mitigate this exposure, it frequently leaves them vulnerable to income shocks. The high volatility of agricultural output reflects underdeveloped weather-related risk mitigation instruments, including limited access to irrigation, and a low rate of adoption of modern agronomic practices and technologies. At the same time, innovative insurance schemes for agriculture are lacking19.

i. Good practices of production

As mentioned above, the central authorities do not have a strategy for the development of the

soybean production and processing. The base of production practices applied is that established in the Soviet period. Also the farmers use the recommendations for the cultivation of soy of the Research Institute of Field Crops “Selectia”. Currently there is not a separate system of soybean production at national level in Moldova. As a model, local authorities could apply the system GlobalGAP, especially because as required by relevant bodies in agriculture, 70% of the requirements of this international standard are respected by the producers.20

1.3 Consumption of Soy a. Dynamics of consumption (use, domestic, national, imports, export) – destinations

Movement of soybeans, their destination and internal consumption is not accessible, as it is not kept a record by the bodies.

Last year were imported soybeans (crushed and others) in quantity of 224 MT worth 187.2 thousand USD. Soybeans are imported from neighboring countries for the production of oil and meal. ”This is an example of misguided economy: soybean from Moldova, which is basically organic, with very high quality, is exported with 6 MDL per kg, and our poultry farms are importing soybean meal, which is what remains of processing soy, with 11- 12 MDL per kg”21.

In 2014, exports of soybeans were in an amount of 42,454 MT worth 18,296,200 USD. The

exported quantity represents about 39% of the global harvest for the same year. Based on analysis of these data and the fact that trade with soy is slow (usually producers of soy expect better prices, which are formed in February-March next year) it is clear that a significant proportion of soy harvest is stored to subsequently be marketed under more favorable conditions.

Table 9 The main export destinations of soy beans Code

Destination

2010 2011 2012 2013 2014 201522

Q, MT Thd USD Q, MT Thd

USD Q, MT Thd USD Q, MT Thd

USD Q, MT Thd USD Q, MT Thd

USD

12010

TOTAL 35062 15769 53096 22748 37899 19512 12726 7790 42454 18296 69242 23218

CSI 12245 4774 12456 5845 10195 5160 - - 16488 8182 3278 1036 Russian Federation 659 311 124 55 - - - - 16488 8182 3278 1036

19 www.maia.gov.md 20 www.globalgap.org 21 MAFI’s minister declaration http://politicon.md/vasile-bumacov-infiintarea-fabricilor-de-procesare-productiei-o-solutie-pentru-problema (2013) 22 For 2015 the period is January-November


0900

EU 7019 2720 31553 12775 27663 14337 12726 7791 25235 986 30094 10603

Austria - - - - - - - - 340 320 - -

Bulgaria 43 17 631 285 40 21 - - 858 367 1172 454

Italy 1323 603 1280 561 - - 365 285 125 71 322 193

Romania 5653 2099 16406 5899 24975 13154 12360 7506 10866 5643 4926 1970 Other countries

15798 8276 9087 4129 41 16 - - 731 251 35870 11580

Source: NBS (export and import customs declarations of economic agents)

The export of soybeans is directly linked to the harvest of the previous year and the fluctuations in dynamic show this dependence. As in 2014 was obtained a good harvest of soybean, accordingly the exports in 2015 registered the highest quantities.

Figure 11. The evolution of soybeans exports, tonnes

Source: NBS

The structure of the exports of soybeans varies year to year, depending on the demand of exporters’ partners. Comparing the exports to EU and CSI countries, in the most years EU countries are importing the biggest quantities of soybean.

35062

53096

37899

12726

42454

69242

0

10000

20000

30000

40000

50000

60000

70000

80000

2010 2011 2012 2013 2014 2015

Total

CSI countries

EU countries

Other countries


Figure 12. The structure of soybeans export, %

Source: NBS

In 2014, the main direction for export is the EU countries in the amount of 25235 MT, of which 51% are exported to the United Kingdom of Great Britain and Northern Ireland, in Romania - 43%. To the Russian Federation was exported approximately 39% of total exports of soybeans.

The commercialization of the crop in Moldova is complicated by the so called "oligopoly" in the export of production, consisting of a few large companies that collect production at a reduced price. The state is obliged to intervene in this case by the Competition Council.

Often farmers, particularly small ones, have problems negotiating with these intermediaries that have a greater negotiating power. The truth is that all profits in the agricultural sector is distributed in a grossly unfair to companies that we can count on the fingers, holding oligopolistic position.

Experts say that to motivate economic agents, the State could intervene with a reserve fund of the Government to purchase part of their domestic agricultural production or other procurement networks to ensure production. It is necessary to elaborate a national strategic plan for the development of the soy production and processing together with the development of the livestock sector and increase the potential for export. To develop a such plan it is necessary the support of EU.

b. Feed / food, livestock industry

The livestock sector development has been problematic over the last decade hindered by competitiveness- and market-related bottlenecks. The livestock sector faces domestic resource constraints (limited feed supply) as well as tough pressures from cheaper livestock imports. Domestic feed supply is short because of the limited availability of good quality pastures, which is in turn due to unfavorable weather conditions and limited irrigation capacities. On the other hand, the relatively high domestic costs of production, low productivity and poor breeds make it difficult for Moldovan livestock products to compete with the cheap subsidized meat/dairy arriving from EU and CIS markets. As a result, Moldova is a net importer in most livestock products.

The livestock sector was developed in the years before 2000 (during Soviet period the livestock sector had an important share in the agriculture). In that period the soybean production was very low (0.6 – 1.2% for total areas) and this fact allows to conclude that the imports of crops for animals feed were very high. The following years, despite the fact that the soybean production increased, the sector was constantly in decline,

3523 27

0

39

5

20

59

73

100

59

43

45

17

0 0 2

52

0

20

40

60

80

100

120

2010 2011 2012 2013 2014 2015

Other countries

EU countries

CSI countries


Figure 13. Livestock for all categories of producers, as of January 1, thousand capita

Source: NBS

Poultry enterprises use the soy cake for feeding the chickens. Annually, for producing 1 mlrd of eggs, they need 25.000 MT of soy cake besides other forage products. From this quantity, 45% are assured from local market by small mills or processed individually on their mills. Local cake is used in the period of November-April and during another part of the year the cake is imported (from Brazil, Ukraine). According to the poultry enterprises’ representatives, the quality of imported cake is higher than local. The imported cake has a minimum percent of protein of 42 – 43. The price for imported cake starts from 370 USD/MT and it is fluctuating during the year.

Figure 14. Poultry for all categories of producers, as of January 1

Source: NBS

In the last years, the agricultural enterprises gain the largest share in the poultry sector, despite the fact that the production of eggs is led by the households.

0

500

1000

1500

2000

2500

Cattle

Pigs

Sheep and goat

Horses

2008 2009 2010 2011 2012 2013 2014 2015

Farms 85 77 86 82 194 169 99 24

Agricultural entreprises 2.152 3.115 3.269 3.128 2.652 3.278 3.377 3.511

88%

90%

92%

94%

96%

98%

100%


Figure 15. Production of eggs for all categories of producers, mio pcs.

Source: NBS

c. Production, import, export of processed products from soy

According to the official data, in 2014 were processed 2411.6 MT of crude soy oil (the last years with good harvest the average quantity of soybean oil was 3400 MT) increasing with 5.7% in comparison with year 2013.

Table 10 Processed products from soy, MT

Product Code Products,

total 2014

including:

Products, total 2013

2013/ 2014,

%

By enterprises with main industrial activity

Of which: By

enterprises with auxiliary

industrial activity

Of which:

Large enterprises

Agricultural entreprise

1 2 3 4 5 6 7 8 9 Crude soybean oil and its fractions, not chemically modified

104121000 2411.6 2292.3 1282.7 119.3 119.3 2281.1 105.7

Cake and other solid residues resulting from the extraction of fats or

104141300 16289.9 15737.8 8472.6 552.1 546.3 11876.6 137.2

246,9 275,3241,2

241,4 241,5 246,0

392,5 442,3463,3

379,7 381,7 398,5

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2009 2010 2011 2012 2013 2014

Households

Farms

Agricultural enterprises


soybean oil Flour and meal of fruit and oilseeds

104142000 34717.7 32259.6 32259.6 2458.1 - 15638.5 222

Source: NBS, MAFI

The capacity of our factories is used in a very limited extent and capacities exist. Another is that the prices offered by factories do not cover costs and then producers and a big amount of production is not achieved or do not want to be achieved due to reduced purchase prices. The state can intervene, but its options are limited. Why does the production cost is very high? Using the manual labor is expensive. It uses very few fertilizers, so that productivity is reduced.

According to the official information, the soybean oil is exported abroad, but the data regarding the quantities is confidential (as there are less than 3 economic agents that perform exports).

Republic of Moldova imports processed products from soy such as: soy oil, soy sauce and soy cake. Regarding the quantities and destinations are presented in the below tables.

Table 11 Imports of soy oil

Code Product name 2011 2014

Quantity, MT

Amount, thd USD Quantity, MT

Amount, thd USD

1507 Soy oil and its fractions, even refined, but not chemically modified, total

42.14 21.9 74.27 46.1

EU countries, of which

2.327 4.1 17.97 3.0

Italy 0.132 0.1 0.197 0.6

Netherlands 2.135 3.7 1.60 2.4

USA 39.82 17.8 47.47 20.0 Source: NBS

Table 12. Imports of soy sauce, 2010-2015

Code Product 2010 2011 2012 2012 2014 201523 Q, MT Thd

USD Q, MT Thd

USD Q, MT Thd

USD Q, MT Thd

USD Q, MT Thd

USD Q, MT Thd

USD 210310000

Soy sauce, total

39 115 36 106 43 139 56 161 74 190 73 140

CSI 25 60 25 57 26 70 29 82 42 108 44 77 EU 43 22 32 22 58 34 52 28 61 25 50 16 Other 94 33 71 27 110 36 18 52 26 58 24 47

Source: NBS

23 For 2015 the period is January-November


Table 13. Imports of soy cake, 2010-2015

Code Product 2010 2011 2012 2012 2014 201524 Q, MT Thd

USD Q, MT Thd

USD Q, MT Thd

USD Q, MT Thd

USD Q, MT Thd

USD Q, MT Thd

USD 230400000

Soy cake, total

11470 5219 10851 4978 11176 7036 10539 6650 15767 9608 17296 7593

CSI 330 129 - - 66 37 189 116 2460 1487 7166 3025 EU 643 286 314 146 71 54 1670 975 32 24 4381 1948 Other 10498 4804 10537 4831 11040 6945 8680 5560 13275 8097 5749 2620

Source: NBS

d. State reserves

According to the Government Decision no. 128 of 10.02.2009 approving the Regulation on State grain reserves (pursuant to Law no. 589-XIII of 22 September 1995 on state material reserves and mobilization (Official Gazette of the Republic, 1996 nr.11-12, 114) state grain reserves is a special fund of milling wheat, meant to ensure the country's food security and protection of the population in exceptional situations caused by natural disasters, epidemics, epizootics, industrial accidents, acts of social or economic and external conditions. The reserves of grain are created by the Government under state reserves and may be used only by its decision. The administration, coordination and exercise of control over grain reserves are tasks of the Agency for Material Reserves.

Thus, in Moldova there are no soybean State reserves.

1.4 Processing in Moldova a. Quantity and quality of processed product of soy

Quality indicators of soybean oil

According to the Harmonized System of Republic of Moldova, soybean oil and its fractions, whether or not refined but not chemically modified, have the following tariff heading – No. 1507.

Table 14 Requirements of organoleptic and physicochemical characteristics of soybean oil

Parameter Reference value

Refined oil Hydrated oil

Deodorized Unbleached Odour and colour Transparent Colour -

Smell and taste Characteristic to soybean oil, without foreign smell and taste; for refined deodorized oil - taste of oil without individuality, no smell.

Iodine colour, mg I2, maximum 12 45 50 Acid value, mg КОН/g, maximum 0,6 4,0 Peroxide value, mmol active oxygen/kg, maximum 10,0 Moisture and volatile matter, %, maximum

0,10 0,15 0,15 Insoluble impurities (sediment by mass) Absence

24 For 2015 the period is January-November


Phosphorous, %, maximum: - recalculated to stearooleolecitine - recalculated to Р2О5 0,05

0,004 0,05 0,004

0,20 0,018

Saponification value (identification sample) Absence Are not determined Iodine value, g I2/100 g * 120-140 Unsaponification content, %, maximum*

0,8 1,0 Flash point, °С, minimum

240 225 Conventional mass per volume (x°C/ water at 20°C)*

0,919-0,925 x =20ºC

Refractive index (ND 40°C)* 1,466-1,470 Saponification value, mg KOH/g oil* 189-195

Source: Decision No. 434 dd 27.05.2010

*Characteristics – „iodine value”, „mass fraction of unsaponifiable substances”, „relative density”, „refractive index”, „saponification value” are determined on the request of beneficiary or in case of dispute.

Quality parameters toasted soybean meal feed

Table 15 Requirements of organoleptic and physic-chemical characteristics of soybean meal feed Parameter Reference value

Colour From light yellow to light brown

Smell Smell of typical soybean meal, free from foreign odours

Moisture and volatile matter, % 8,5 – 10,0

Ash content in absolutely dry matter, %, maximum 1,5

Urease activity (pH changing in 30 min) 0,1 – 0,2 Micotoxynes, mln -1 (mg/kg), maximum: aflatoxin B1 toxin Т-2 zearalenone

0,025 0,1 1,0

The content of toxic elements, mln -1 (mg/kg), maximum: lead cadmium mercury

0,5 0,1 0,02

The content of nitrate, mln -1 (mg/kg), not more 450

The content of nitrite, mln -1 (mg/kg), not more 10

The content of impurities (stones, glass, soil) Not allowed

Mass fraction of solvent residues (gasoline), %, maximum 0,1

Metalomagnetic impurities, %, maximum: particle size up to 2 mm including particle size larger than 2 mm and with sharp edges

0,1 Not allowed

Infection Not allowed

Source: standard GOST 12220-96


Note – It is allowed to produce non-granulated feed soybean meal with a mass fraction of moisture and volatile substances up to 12 %.

Table 16 The nutritional value of soybean meal Parameter Reference value

Crude protein on dry matter basis, %, maximum 45,0

Crude fibber on dry matter basis, %, maximum 7,0

The total nutritional value, maximum 1,18 Source: standard GOST12220-96

1.5 Markets - Domestic and International a. Position of soy compared to other crops

The situation in households indicates that agricultural enterprises continues to concentrate most of the areas with wheat (72% of the total area of crops this culture), barley (64%), sugar (91%), sunflower (68%), tobacco (77%), soy (74%), winter rape (91%). In households (farms) are concentrated 56% of sown with crops for fodder and 54% - melons crops, and private households - 78% of the areas planted with potatoes, 80% - the areas planted with vegetables of land and 56 % - the areas are sown with grain legumes crops.

The structure of the sown areas with agricultural crops after land owners indicate that the largest share is owned by agricultural enterprises which makes up 760,000 ha or 50.7% of all sown area of the country, households (farms) - 1 470 000 ha or 31.3%, and private households - 271 000 ha or 18.0%.

Analysis of data on sown areas with crops in agricultural enterprises and households (farms) with the land area of 10 hectares and over, territorially shows that the sown areas with grain and legumes - totally increased in Chisinau - 10% in developing regions: Center - 6%, South - 5%, North - 2% and in Gagauzia these areas decreased from the previous year by about 1%.

Sown areas with technical crops increased in the Northern Region - with about 2%, Gagauzia - 1%. At the same time, in the central region and Chisinau sown areas with technical crops decreased respectively by 11% and 8%, while in the South development region such areas remained almost at the level of last year.

The areas with potatoes, vegetables and melons crops, decreased in all regions in the country and as follows: North - 27%, Center - 21%, the city of Chisinau - 20%, South - 3% and Gagauzia - 2%.

The areas sown with forage crops increased in Gagauzia - 16% in the central region - 4%. Meanwhile in other regions such areas have decreased: Chisinau by 39%, North - 13% and South - 11%.

b. Alternatives to soy?

In oil seeds, Moldova is a minor rapeseed producer and its sunflower crop has regular planting area. Sunflower is the third most cultivated crop after corn and wheat. In spite of its modest size of 3.4 million hectares, the Republic of Moldova’s annual production of sunflower seed is estimated at about 300,000 to 350,000 tons. Sunflower seed is primarily processed to make cooking oil, while sunflower meal is used as an animal feed for the large ruminant population of goats, sheep, dairy cows, and cattle. The crush level is now estimated at 300,000 tons of sunflower seed per year. Sunflower oil represents about 99 percent of overall vegetable oil consumption in the country.

c. Analyse markets and industry dependent on soy: milk and meat, egg and poultry: production and trade

trends for these sectors (life stock industry is crucial for soy!!)


As in most markets, the availability and price of animal feed drive the pattern of domestic meat production. When animal feed is abundant and cheap, farmers expand their herds. When it becomes scarce and expensive, meat production rises as farmers are induced to slaughter their herds. The poultry feed consumption based on meat production, layer numbers and on the total population should be about 200,000 MT. The pork feed consumption based on meat production and animal numbers indicate pork feed consumption is almost 200,000 MT annually.

On the national basis, the feed consumption is quite small and would only require a few large commercial feed mills to accomplish the commercial feed needs. The goat and sheep while fed would be a small percentage of their total commercial feed demand. The local feed industry has to compete regionally for its main input grain. In Moldova this should not be a problem as Moldova produces at least 1.2 million tons of corn, meaning at least 900,000 MT is available for export, if needed. In addition, Moldova produces another 1 million tons of wheat (800,000) and barley (200,000) that is available for local consumption or export. Grain supply is not a problem in Moldova.

The high protein and low fiber sunflower meals have limited application in poultry rations, generally as a partial replacement for soybean meal. Lysine supplementation is required in laying hen diets containing more than five percent sunflower meal. Threonine is a second limiting amino acid for broiler chicks and laying hens. Sunflower meal in laying hens can replace 100 percent of supplemental proteins, (including soybean meal) if sufficient supplemental lysine is included. There may be more limitations in feeding swine sunflower meal due to the high fiber and lower levels of lysine. Lysine supplementation is necessary when replacing greater than 50 percent of the soybean meal. Sunflower meal is entirely adequate as the sole source of supplemental protein in dairy rations. Production increased slightly when cows were fed a blend of sunflower meal and soybean meal instead of only soybean meal as the protein supplement.

In other proteins, it is a different story. Poultry do not fare as well with nonvegetable protein sources like meat and bone meal. The poultry and swine industries remain the predominant consumers of meat and bone meal because of its high calcium, available phosphorus and lysine contents. Considering what has been published in the literature related to the use of meat and bone meal in poultry and swine diets, most nutritionists consider levels between 2 to 5 percent acceptable.

All things considered, the size of the poultry and pork industries and domestic corn utilization statistics indicate demand for soybean meal should be at least 50,000 MT per year at today’s feeding and income levels and Moldova has a market potential of at least 80,000 MT per year.

d. Situation and potential for organic soy

The cultivation of organic soy is at its initial stage of development. The producers of organic soy

are aware about high demand of organic soy on international markets. Currently the quantity of organic soy produced in Republic of Moldova is not significant for international importers, but despite this, the existing quantities are exported to EU. Also, a factor motivating the producers to choose the soy for organic production is the high price for organic soy beans. e. A look across the table: GMO is an important issue in soy cultivation and processing. For which other

crops cultivated in the Moldova is GMO an issue?

Despite the fact that central authorities declare that in Republic of Moldova the GMO is not produced, from informal sources it is known that if not almost, a big share of cultivated soy is GMO. A cause of this can be the fact that an important part of the imported seeds is originating from Ukraine, a well-known country of producing GMO.

In Republic of Moldova the corn is also always tested on GMO during export procedures, as this crop is with high risk to be contaminated.


f. Challenges of small producers of soy beans • Since most of the tradable agricultural inputs are imported, Moldovan farmers face the world prices for

their inputs, but are not able to receive the world prices for their products. • Aside being subjected to input price variability, small holders are also subject to output price volatility.

In an environment where smallholder farmers are unable to mitigate this exposure, it frequently leaves them vulnerable to income shocks.

• The commercialization of the crop in Moldova is complicated by the so called "oligopoly" in the export of production, consisting of a few large companies that collect production at a reduced price.

• Often farmers, particularly small ones, have problems negotiating with these intermediaries that have a greater negotiating power. The truth is that all profits in the agricultural sector is distributed in a grossly unfair to companies that we can count on the fingers, holding oligopolistic position.

• No support from central and local authorities for development of this sector.


II. Legislation background and proposals

2.1 Relevant policies and strategies

There is the National Strategy for Agricultural and Rural Development for the years 2014-202025, approved by Government Decision no. 409 as of June 4, 2014 (Official Gazette of the Republic of Moldova, 2014, # 152, art.451). This strategy confirms the recognition by the Government of the Republic of Moldova of importance of the agri-food sector and rural development, and is a precondition for their long-term development. It should also act as a framework for policy makers to identify the major problems and to help in identifying optimal solutions. At the same time, the Strategy will be used as a tool to plan and program all necessary measures and to secure financial support from Government of Moldova, international development partners, international financial institutions and donors for the implementation of the proposed agenda.

2.2 Legislative and policy framework a. Legislative and Normative Framework: laws, normative regulation of the production and processing of

soybean

There are no specialized normative acts that regulate production and processing of soybeans in Republic of Moldova, but at the same time market entities should work in framework of general legislation base on agricultural production. To this category we can include:

• Law nr. 39-XVI as of 29.02.2008 regarding the protection of plant varieties; • Law nr. 160 as of 22.07.2011 regarding regulation through licensing of entrepreneurial activity; • DECISION Nr. 915 as of 07.12.2011 for the approval of requirements for quality and

commercialization of seed of oil and fiber; • Order MAFI Nr.52 as of 19.03.2007 regarding Technical Regulation on the approval,, Material seeds

for field crops” ( M.O. Nr. 146-148 (3033-3035) as of 14.09.2007); • Order MAFI Nr. 83 as of 22.05.2007 Provisional Regulations on issuing certificates for seeds and

propagating material used to manufacture the merchandise - in the context of their genetic modification, economic agents.

b. Institutional Framework: development and implementation the policy

Currently, the following institutions are implementing activities that contribute to the development of agriculture, namely: 1. Ministry of Agriculture and Food Industry, together with its subordinate institutions, is responsible for developing and promoting the agricultural development policy, increase competitiveness and productivity of the sector and improves the quality of life and work in rural areas. For institutions subordinated to MAFI, which are supporting efforts of the Ministry in the implementation of agriculture and rural development policies, the following can be mentioned: • Interventions and Agriculture Payments Agency (hereinafter - AIPA), which currently provides financial support for subsidies in agriculture and rural development, in accordance with the EU rules. Also, AIPA is currently acting as the implementing and payment agency for some donors, including the World Bank, providing support for agriculture and rural development measures; • Agricultural Information Centre, created under the MAFI, responsible for coordination of the implementation of the e-Agriculture principle and for the integration and consolidation of agricultural information resources, such as Agricultural Producers Registry, Vineyard Registry, Agricultural Machinery Registry and other;

25 See annex No. 6


• International Fund for Agricultural Development Programs (hereinafter - IFAD) Consolidated Programs

Implementation Unit, under MAFI, implementing measures on modernization and restructuring of agriculture and rural development in line with the EU policy on agriculture and rural development; • Consolidated Agricultural Projects Implementation Unit, funded by the World Bank (CAPMU), responsible for ensuring the efficient implementation of World Bank projects in agriculture and rural business development; • Implementation and Management Unit of the Food Production Increase Project (2KR), which contributes to the establishment of accessible and advantageous conditions of agricultural machinery purchasing by paying for it in installments, with the view to renew and equipping the agricultural producers of the country with new machinery; • Implementation Unit of the project "Transition to a Competitive Agriculture”, which manages activities that contribute to increasing rural incomes by stimulating growth in agriculture performance and catalyze investments in high value-added production. 2. Ministry of Economy - develops and promotes horizontal policies of business development, support to SMEs, attracting investment and promoting exports, domestic trade development, ensuring energy security and efficiency throughout the country, being supported in the process of implementation by: Organization for the Development of Small and Medium Enterprises Sector, Moldovan Investment and

Export Promotion Organization, Energy Efficiency Agency, Public Property Agency, Agency for Consumer

Protection. 3. National Food Safety Agency, which is responsible for implementing policies in the field of food safety, veterinary, plants protection and phytosanitary quarantine, seed control, quality of primary products, food products and fodder.26 c. Possible deficiencies in the National Legislation

Currently, the MAFI and NAFS have a strictly centralized state policy in the field of products quality control intended for export. Through this policy the economy rules are not appllied by failing to recognize quality certificates issued by the inspection bodies (SGS and others). Although in the contracts of the exporters are stipulated the quality requirements and certificates to be issued for export, exporters are forced to make multiple tests before each export. It is recommended changes in the legislation which will limit the state authorities in providing services for economic agents that are already provided by other private companies. Actually, for instance, NAFS imposes to exporters their quality certificates for grains and oilseeds (including soybeans), which are not even recognized by the importing countries.

d. Relevant trade policies and export promotion

The authorities, which indirectly have the export promotion in their policies, are MAFI and ME. The organization dealing directly with export promotion in all areas is MIEPO – Moldova Investment and Export Promotion Organization. MIEPO is the prime source of information and assistance for potential investors. The organization provides tailored services for potential investors throughout the investment decision process. Its team consists of permanent investment attraction staff, consultants, as well as regional officers, combining their experience; they are able to provide all interested parts with information relevant for their decision making, as well as links to businesses and government.

Since 2001 the Republic of Moldova is a full-right member of the WTO. This allowed for an increase in the external trade of the country and the implementation of international standards in the production processes. The Republic of Moldova has a liberal trade regime. So far Moldova has signed Free Trade Agreements with 43 countries:

• EU-28 member states (DCFTA), • CIS member-states,

26 www.maia.gov.md


• Countries of Eastern Europe (Romania, Croatia, Serbia, Macedonia, Bosnia-Herzegovina, Albania, Bulgaria, Montenegru and Kosovo) and

• Turkey.

Moldova also has the benefit of several preferential trade agreements:

• Norway • Canada • Switzerland • Japan • USA

e. Quality and (bio-)safety, GMO control, registration of GMO crops?

Activities related to obtaining, testing, use and trade of GMOs requires authorization as set out in the relevant regulation, drafted in accordance with the Law nr.755-XV as of 21 December 2001 on biosafety and harmonized with Directive 2001/18/EC on the deliberate release into the environment of genetically modified organisms, Directive 90/219/EEC on the contained use of genetically modified micro-organisms and Directive 98/81/EC amending Directive 90/219/EEC on the contained use of genetically modified micro-organisms. Regulation provides for the authorization of GMOs related activities, evidencing title holder authorization to operate a specific type of activity and compliance with the conditions provided by the authorization. Activities related to obtaining authorization, use and trade of such organisms is conducted by the National Biosafety Committee.

For the market introduction of a product, it is necessary that the labeling and / or accompanying documents thereof comprising at least: the product name and the genetically modified organism contained therein, the producing country, the name and address of the manufacturer, packer, exporter or importer of the product, net weight, nutritional value, storage, production date and expiration date, indicative of legal document under which the product was produced and identified, including specifying conditions of use, type of use, genetic modification produced. Label and / or accompanying documents must clearly state whether genetically modified organism is present; the words' “This product contains genetically modified organisms" are required.

2.3 Subsidy system in the Moldova

In order to achieve the strategic objectives of development of the agribusiness sector, stipulated in the National Strategy for Agricultural and Rural Development for the years 2014-2020, approved by Government Decision no. 409 as of June 4, 2014 (Official Gazette of the Republic of Moldova, 2014, # 152, art.451) and in accordance with the European Commission's sector budget support "economic stimulus in rural areas", the Government has decided by Decision no. 352 as of 10.06.2015, the acceptance of the proposal of MAFI on the allocation of the fund for subsidizing agricultural producers in 2015. The fund subsidy for 2015 amounts to 610 mln MDL, including 110 mln MDL from the European Commission's account of sector budget support "Economic Stimulation in Rural Areas". Administration of the fund for subsidizing agricultural producers is carried out by the APIA of the MAFI. The funds in question will be used according to the following areas of support: Area 1. Increasing competitiveness of the agrifood sector through restructurization and modernization. Measure 1.1. Investment subsidies for fruit and vegetable production on protected land (winter greenhouses, solariums, tunnels). Measure 1.2. Investment subsidy for creation, modernization and deforestation perennial plantations, including vineyards and orchards. Measure 1.3. Stimulating investment and procurement of conventional agriculture equipment. Measure 1.4. Stimulating investment for the use and technological renovation of livestock farms. Measure 1.5. Stimulating purchase of breeding animals and maintain their genetic background.


Measure 1.6. Stimulating investment for infrastructure development and post harvest processing: submeasure 1.6.1. Packing houses and refrigerators for storage of fruit, grapes and vegetables;

submeasure 1.6.2. Processing, drying and freezing of fruits, grapes, vegetables and potatoes;

submeasure 1.6.3. Processing, drying and packaging of cereals, oilseeds, sunflower and soybean;

submeasure 1.6.4. Primary processing, packaging, refrigeration, freezing and storage of meat,

processing, packaging and storage of milk.

Measure 1.7. Facilitating access to capital markets and inputs for farmers, including farmers lending by commercial banks and non-banking financial institutions: submeasure 1.7.1. Stimulate lending to farmers by commercial banks and non-banking financial

institutions;

submeasure 1.7.2. Stimulate risk insurance mechanism in agriculture. Measure 1.8. Stimulate establishment and operation of groups of agricultural producers.

Area 2. Ensuring sustainable management of natural resources. Measure 2.1. Stimulating investment for land consolidation. Measure 2.2. Stimulating investment for purchasing irrigation equipment. Measure 2.3. Stimulate compensation of farmers for irrigation. Measure 2.4. Stimulating investment for No-Till and Mini-Till equipment purchase.

Area 3. Increasing investment in the physical infrastructure and services in rural areas, including in agricultural enterprises related infrastructure, placed in town. Measure 3.1. Supporting investments in agricultural infrastructure related to companies located in town.

Subsidies are determined by: • the need to enhance the competitiveness of Moldovan food products on domestic and foreign

markets; • the need to ensure food security of the population of Moldova; • the need to increase food safety and quality of food products both in our internal and external

market; • requirements and obligations on European integration aspirations.

By allocating the fund is aimed to achieve the following: 1) increasing productivity and competitiveness of agriculture; 2) stimulating technology transfer and extension services; 3) increasing farmers' income and reduce poverty; 4) widely attraction of young farmers in the initiation and development of agricultural activities in rural

areas; 5) efficient use of natural resources and preservation of the environment; 6) expansion / diversification of access to foreign markets, including those of the European Community.

The procedure for subsidization expires on August 7, 2016.

The producers of field crops do not receive subsidies per ha, but they can get subsidies in the cases of procurement of equipment and technique. The producers of soybeans are credited in the cases of procurement of inputs (seeds, diesel fuel, etc).

2.4 Phytosanitary regulations a. Phytosanitary Quarantine Control Upon Export

Quarantine regulation in Republic of Moldova is regulated by the Law No. 228 dated 23.09.2010 “On plant protection and plant quarantine”. The article 20 of this law regulates the quarantine control upon export and provides following statements:


(1) The plants, plant products, related goods subject to phytosanitary quarantine for export and / or re-exportation are accompanied by the phytosanitary certificate. (2) To prevent the occurrence and spread of pests, the export or import of certain plants, plant products and goods subject to phytosanitary quarantine is permitted only if, prior to export, have been subjected to phytosanitary inspection to the place of production or, in case of re-export, the place of storage. To obtain phytosanitary certificate for export: • request of the person or entity on the issuance of export phytosanitary certificate; • plant quarantine permit to import of the importing country; • plant Control Act of place where the cargo was loaded; • certificate of origin; • tax bill or invoice for the cargo shipping.

Moreover, to obtain the phytosanitary certificate for export of seed and planting material are to be presented in addition the following27: - license for the right to produce and sell seeds and planting material; - certificate of quality of seed and planting material; - Certificate of quarantine expertise of cargo to be exported, released from quarantine phytosanitary

laboratory.

The Government approved the Regulation on the establishment and operation of single window for issuing phytosanitary certificate for export / re-export. The new Regulation reduces the procedures for issuing phytosanitary certificate for export, especially abolishes the requirement of the four of seven documents previously requested from economic agents. Their elimination was possible due to the incorporation and outsourcing documents concerned internal procedures of the NFSA. Also, after the implementation of the new Regulation, the economic agent will have to make only two visits to field offices of NFSA, instead of the five currently carried out.

Thus it was eliminated the obligation to present the document on inspection certificate plant and plant quarantine expertise and products of plant origin. And is excluded the repeated presentation of tax bill and contract sale and purchase (export) those one may be submitted once at any subdivision of NFSA. The implementation of these measures requires the automatic exchange of information between offices of NFSA and quarantine center without the involvement of economic agents. As a result of application of the Regulation is estimated to reduce the cost of obtaining export phytosanitary certificate incurred by economic agents by 70% and reducing waiting time by 50%. The need for reform has been identified following consultation meetings of the Economic Council of the Prime Minister, with the participation of producers and exporters of vegetable and experts in the field. Following the consultation, in September 2014, was signed an indication addressed to the NFSA to optimize the process of obtaining phytosanitary certificate. The new Regulation applies the principles of Government Decision no. 778 as of 04.10.2013, regarding some measures to implement the one window for entrepreneurial activity.

b. Relevant costs of issuance of the phytosanitary certificate for export of soy seeds

The phytosanitary certificate / re-export certificate is an official document, prepared pursuant to certificate of the International Plant Protection Convention, drawn up in accordance with art. 27 of this Act, certifying that the plants, plant products and related goods subject to phytosanitary quarantine intended for export, re-export fulfill the phytosanitary requirements. Pest control body issuing phytosanitary certificates when importing countries impose such a requirement. The phytosanitary certificate is issued by the exporter subdivision phytosanitary control body whose products range are

27 LIST Nr. 160 as of 30.12.2005 of the documents required to obtain phytosanitary certificates for export and import permits for plant quarantine (transit) (GENERAL INSPECTORATE ON PHYTOSANITARY SUPERVISION AND SEED CONTROL)


subject to quarantine goods to be presented to the competent phytosanitary authority of the importing state.

To obtain the phytosanitary certificate, the exporter presents to phytosanitary subdivision control body, no later than 24 hours before shipment:

a) application for to the phytosanitary certificate; b) certificate on the use phytosanitary products, at the request of the importing country; c) phytosanitary certificate of country of origin; d) expertise certificate of plant quarantine and plant products subject to phytosanitary quarantine to

be exported, issued by a legal entity authorized by the central administrative authority in the field of agriculture;

e) copy of the contract of sale – purchse or another civil legal act in whose base are made export or re-export of plants, plant products and related goods subject to phytosanitary quarantine;

f) copy of the tax bill or invoice for shipping of cargo; g) act concerning phytosanitary inspection of cargo units and other related goods subject to

phytosanitary quarantine, issued under art. 261. The validity of the phytosanitary certificate is 14 days from the date of issuance. The costs for the issuance of the phytosanitary certificate start from 20 MDL for a batch of 20

kg/pieces/sets/m2/m3 till 139 MDL for a batch of 70 thousand kg/pieces/sets/m2/m3. For a batch of more than 70 thousand kg/pieces/sets/m2/m3 the cost is 185 MDL + 0.50 MDL for each 1000 kg/pieces/sets/m2/m3. These costs include laboratory investigations by microscopic method.

c. Relevant costs of issuance of the phytosanitary certificate for import of soy seeds

To obtain quarantine phytosanitary permit for import (transit)28: - Request of person or entity to release phytosanitary quarantine import permit (transit); - Act of phytosanitary control of the room where is expected to unload imported cargo.

The costs for phytosanitary quarantine import permit (seeds and planting material) are from 2 MDL for a batch of 100 kg/pieces till 5 MDL for a batch of 900 kg/pieces. For a batch of more than 900 kg/pieces and for each 1000 kg/pieces the cost is 5 MDL. These costs include laboratory investigations by microscopic method.

2.5 Taxes and fees:

Taxation in agriculture, as in all other sectors of national economy, aims to help increase the country's income, but at the same time, must comply with the following essential principle of taxation:

• Increase the efficiency of individual farms; • allow farmers to earn sufficient resources for investments; • minimizing distortion of prices;

1. Corporate Income Tax

Moldova has a competitive general corporate income tax (CIT) rate in the region – 12%. The following rates are also applicable:

Table 17 The rates for corporate income tax Tax payer CIT29 rates, % Individual entrepreneurs 7 and 18 Farming enterprises 7

28 LIST Nr. 160 as of 30.12.2005 of the documents required to obtain phytosanitary certificates for export and import permits for plant quarantine (transit) (general inspectorate on phytosanitary supervision and seed control) 29 For legal entities whose income is estimated through indirect methods, the 15% CIT rate is applied to the value of income in excess of the amount of gross income recorded in accounting.


Legal entities 12 Legal entities (small & medium businesses enterprises)

330

Source: The Tax Code

2. The social and medical insurance

For the employers in agriculture (individuals and businesses) contribution rate of compulsory state social insurance fund is 22% of salary and other payments for all staff of the economic unit.31 The mandatory health insurance in the form of percentage contribution to salary and other payments calculated for categories of payers is set at 9% (4.5% for each category of payers - employers and employees)32.

3. Real estate taxes

The real estate tax is a direct tax, which came into force in 2001 and combines in itself two separate taxes:

Financial tax - Land tax rates for agricultural lands shall be determined depending on the surface and their geographical location, structure and soil quality. Thus, for agricultural lands which have cadastral indexes are paid 1.5 MDL for 1 degree-ha and for lands, that do not have indexes - 110 MDL/ha.

Tax real estate - farm land with buildings located on them: • maximum rate - 0.3% of the taxable base of real estate; • minimum rate - 0.1% of the real estate tax base.

Actual share is determined annually by the representative bodies of local government;

4. VAT

Agricultural enterprises, regardless of the type of property and legal form of organization, including the farms, are VAT payers in the order established in the Tax code. In agriculture the fixed rate is 8% and export of goods and services are taxed with VAT 0%. The general rate in Moldova is 20% for goods and services.

5. Other

This category includes road taxes, which are paid according to the owned transport capacity, taxes for water using, for landscaping and natural resources – these taxes are set by local authorities.

6. Export and import taxes

According to the Law on customs tariffs, the tariffs for imports are as follow: Table 18. Import tariffs

Tariff position Product name Custom duty (% of cost, unless stated otherwise

1201 00 Soybean, even crushed 1201 10 000 For seeding 5 1201 90 000 Another 5 1208 Flour and meal of fruit and oilseeds: 1208 10 000 – from soybean 5

30 The tax rate applies to income which arises from the operational activity, if conditions for applying this special regime are met (e.g. for small and medium enterprises which fulfill certain conditions). 31 Law on State social insurance budget for 2015 32 Law on health insurance funds for 2015


1507 Soybean oil and its fractions, refined, but not chemically modified

5

2103 10 000 Soy sauce 15 2304 00 000 Cake and other solid residues resulting from the extraction

of fats or soybean oil 5

Source: Combined nomenclature of goods

There are no special export tariffs, except customs procedures that are 0.01% from the goods costs.


III. SOCIAL IMPACT a. Economic, socio-economic situation of the sector participants, and compared to local income situation

Available income of the population33. According to the Household Budget Survey, available income in the first quarter of 2015 constituted 1853.6 lei, monthly average per person, was increasing by 12.3% over the same period last year. In real terms (adjusted to Consumer Price Index) population's income registered a growth of 5.8%.

Table 19 Available income of the population, first quarter, MDL 2011 2012 2013 2014 2015

Available income – total (monthly average per person)

1349,9 1438,3 1560,4 1651,1 1853,6

including in % on formation sources: Payed employement 48,9 43,9 42,5 42,6 40,2 Individual agricultural activity 9,8 10,1 9,1 10,1 9,6 Individual non agricultural activity34 4,3 5,9 6,4 5,9 5,3 Transfers from abroad 14,8 15,5 16,6 17,0 18,6 Source: NBS

Wage payments are the most important source of income, 40.2% of the total available revenues,

decreasing their contribution to the first quarter of 2014 by 2.4 percentage points. Income from self-employment represents 14.9% of the population incomes, including income from

9.6% are individual agricultural, and 5.3% - individual non-agricultural. A major source of household budgets remain the remittances from abroad, which constituted on

average 18.6% of total revenues compared with 17% in the first quarter of 2014. The incomes of urban population are on average 817.9 lei or 1.5 times higher than rural incomes.

However, the main source of incomes of the urban population is the employment, representing 53% of total revenues and social services - 20.7%. In rural areas, the most important source of income is also the employment (25.5%), but its contribution is 2.1 times lower than in urban areas. The incomes from individual agriculture are 19% of the available incomes of rural households.

The labor market. According to the Labour Force Survey in the first quarter of 2015 the economically active population of Moldova was approximately 1.152 thousand people. The activity rate of the population aged 15 and over was 38.6%, reaching higher figures among male population - 41.2%, compared with the rate for women - 36.1%. Activity rates on average recorded the following values: urban - 43.7%, rural - 34.5%. The highest rate of activity (58.4%) was recorded in the age group of 40-44 years.

The employed population was 1.054 thousand people. The distribution by sex shows that the share of men in total population (49.5%) was almost equal to that of women (50.5%). For rural area is 50.4% and for urban - 49.6%.

The employment rate of the population aged 15 and over was 35.3%. For men it was higher than for women (36.6% and 34.1% respectively). The employment rate in rural areas (31.8%) was lower than in urban areas (39.7%). The highest employment rate (55.2%) was registered to persons of 45-49 years.

Unemployment rate at the country level was 8.5%, in 2014 - 5.1%. For men it reached 11.2% and women - 5.7%. There are still significant disparities between urban unemployment rate (9.2%) and rural (7.8%).

Migration process. Due to decreasing employment possibilities in rural Moldova, an out-migration process from the countryside to in-country and over-sea cities occurs, is led by young and educated people. The number of people working or looking for work abroad increased 1.5 times in urban areas and 3 times in rural areas from 2000 to 2011. The highest increase of out-migration is observable among middle-aged (45-54 years) and young (25-34 years) people with higher education. Every fifth Moldovan is

33 NBS, ” Socio-economic situation of the country in January-June 2015” 34 Construction, bakery, tailoring


working abroad and every fourth out-migrant is coming from rural areas. According to national statistics, 20% of the active population is currently working abroad – among them, young agricultural entrepreneurs, who should generate innovations and implement modern technologies in agriculture and rural businesses. The situation is even worse in rural areas, approximately 25% of the rural population, was working abroad in last years. These are official figures that are believed to be highly under-reported, while real migration numbers are much higher. Based on the remittances destinations, it is clear that most migrants come from rural areas of Moldova.

b. Salaries, land rent

• Salaries

The nominal average salary in the real sector for the first 8 months of 2015 averaged 4,676.8 MDL, increasing by 10.6% over the same period in 2014.

Average wage in agriculture, hunting and related services recorded a positive progress in 2015 than in 2014 by 11.6% registering the highest growth in July, 2,795.2 MLD in 2014 and respectively, 3,186.1 MDL in 2015. In most of cases when the lots are leased, the renter pays the owner in the natural products (products which were produced on these lots), not money. Sometimes are cases when the employees receive their salaries unofficially, “in envelope”.

• Land rent

Excessive fragmentation and small areas of land as a result of the privatization reform led to a sharp decline in agricultural productivity, cultivation technology and crop rotation failure, soil degradation and other negative impacts on the agricultural sector, and resulted in a negative impact on the rural population.

According to preliminary results of the Agricultural Census in the Republic of Moldova there are 903,000 farms, the average size of a holding being of 2.5 ha that is usually divided into 3 plots the average size of plots being 0.8 ha. The average area of a plot in the country is 0.85 ha, the central part of the country being the most fragmented.

Undulating plains with fertile chernozem soils and productive agricultural land primarily characterize Moldova’s terrain. By its composition and natural fertility, the soil of the Republic of Moldova is characterized by a remarkable diversity. It is dominated by chernozem soil that has a different degree of degradation (70% of the total). Of particular interest are the alluvial soils intended for irrigation (arable soil - about 60 000 ha) and gray soils or griziom (arable - the 76 000 ha) suitable for cultivation of technical crops, and orchards of stone fruits. The quality of almost every second hectare of land quality is above-average, of which 689 000 ha (27% of agricultural land) is of superior quality.

Official data confirms that the market of agricultural land had a positive evolution in recent years, and experts say that this factor also meant that agriculture is no longer a risk investment sector, but which could bring profit. According to information presented by Agency for Land Relations and Cadastre, the number of transactions of purchase and sale of agricultural land increased from 65,000 in 2007 to about 73,000 in 2013. And more has evolved the number of transactions of lands that are leased. Their number has increased three times from about 12,000 in 2009 to about 34,000 in 2013.

In less than a decade, the price of farmland has increased more than five times from 3700 lei per hectare in 2000 to 16 500 lei in 2010. According to data from Exchange "Lara" consolidated agricultural areas were sold in 2013 at a price of 14-16 thousand lei per hectare, dispersed lands were bought by 7-12 thousand lei / ha, while those near Chisinau - 30-60 thousand Euros / ha (557 350 lei – one million 114 740 lei). And the number of land owners has increased from about 131,000 in 2009 to 139,000 in 2013.

While talking about non transparency regarding data on the state of agricultural land, experts argue that this market has the highest growth potential compared to other branches. The main cause of that rise of agricultural land market is due to the agricultural land consolidation and increase of the attractiveness of investing in agriculture.


To reform the land sector, it has been developed the land consolidation strategy for the years 2012-2027, which provides for the elimination of several problems such as imperfect legislation, large notary costs, degraded soils and infrastructure development in rural areas.

According to the legislation in force (Law no.198-XV as of 15 May 2003 on Lease in Agriculture), foreign investors can lease agricultural land for a period of up to 30 years, which is widely used by Germans, Bulgarians investors and others.

c. Infrastructure

Access to drinking water and sanitation is an important issue for poverty eradication and economic development of a state. The costs of improving access to water and sanitation are modest compared to the benefits it brings to health and that the state budget. In 2014, the water services were provided to 30.7% of the country's localities - 85.9% in cities and 28.6% in rural areas. When referring to population, statistics show that about 1.6 million of the population had water supply services, representing 44.4% of the population.

In 2014 the volume of water supplied by specialized enterprises constituted 74.3 mln. Cubic meters. On average per year per inhabitant lies about 15 m supplied water. Territorially, the largest volume of water supplied per inhabitant is recorded in Chisinau - 42.2 m, Gagauzia - 8.9 m, followed by the South - 7.7 m.

The problem of water and sanitation is worse in rural areas, where about 60% of the population lacks this service. Here, due to lack of access to water, people use water from wells. But statistics show that of the 300 thousand fountains in the country, about 80% does not meet sanitary standards. However, half of groundwater quality indicators do not meet drinking water.

In the sewers, last year the number of localities with such systems has reached to 136, of which only in 107 locations were functional. The total length of the sewerage network was 2700 km, of which de facto functioned 2500 km.

Finally, about 40% of our population needs a better assurance of safe water and sanitation system. According to a UNDP report, the main causes of the water crisis are poverty and social inequality. Thus we have a vicious circle, we have no water and sanitation because they are poor and to reduce poverty it is necessary to expand access to quality water and sewerage systems.

However, statistics show modest progress with regard to ensuring drinking water and sanitation to people in Moldova. And this despite the numerous projects and financing from the country's development partners, amounting to tens of millions of euros to improve water supply systems in different regions of Moldova.

Poor condition of roads in the Republic of Moldova has a number of adverse effects. Households, especially those in rural areas, due to poor condition of the road network, incur significant additional costs for access to social, health and administrative services and markets. According to estimates, the unsatisfactory state of roads implies additional costs for users of approximately MDL 2.5 billion annually. Also have a negative impact on the environment. Fuel costs on roads in bad condition compared to their better status are increased by 20%. This contributes to additional emissions of harmful substances into the atmosphere. Besides bad roads are an additional source of noise and vibration. The paved roads are a source of formation of dust clouds, which negatively influences the development of agricultural crops in the area of influence of the road.

d. Access to financing

Although the financing of the agricultural sector35 has increased significantly in recent years, particularly because the funds allocated by foreign donors, Moldova allocates fewer funds for agriculture

35 www.maia.gov.md


than most countries in Eastern Europe, if we consider the ratio of the volume of the agricultural budget in GDP and the share of agriculture in GDP. For this indicator, Moldova is lagging behind most countries in Eastern Europe, outpacing only Ukraine and Romania. However, the tempo of growth in our country is higher than in some countries (Romania, Bulgaria) where expenditure in agriculture is much higher than in our country.

• Private financing

There is a possibility to assure financially the farmers by the traders and collectors. In this way the farmers can buy seeds, fertilizers, plant protection products, etc with the condition that harvested crops will be sold exclusively to the trader or collector that has financed the farmer.

• Financing from banks

Almost all local banks have special credit programs for the agriculture. Below it is presented some offers

from local banks.

Table 20. Offers of credits for the agriculture

Moldova AgroIndBank36 Credit Scope Amount,

thousand Currency

Loan term, months

Rates, % Notes

Multioptional Agro

Short term financing of the

acquisition of raw materials for

creation/maintenance of the crops,

harvesting

5-50 MDL Not more 24

19.5 – 20.25

Unsecured loan

Agro Plus Formation and financing of

working capital; investments in procurement of the machinery

10-700 MDL 36-60 17 - 19 Mix guarantees – movable

and/or immovable

Moldincombank37 PROMPT Financing of trade

and production 100 MDL unsecured

OPTIM 500 MDL MAJOR 1500 MDL Fincombank38

AgroFinSezon

Replenishment of circulating assets

Established in

dependence of client’ needs

MDL, USD, EUR

Up to 18

Established individually

secured

AgroFinInvest

Investment credit Up to 60

secured Own contribution

to the project –

20% Comertbank39

36 http://maib.md/ro/credite-pentru-agricultura/ 37 https://www.micb.md/microcredit/ 38 http://www.fincombank.com/agrocredit-md/


PARTNER For enterprises development,

including replenish of current assets, purchase of the

equipment, others

Max 100 MDL Up to 24

20 - 24 unsecured Experience in

agriculture minimum 1

year

Mobiasbanca40 Microcredit For working capital Unlimited,

from 20 MDL (or equivalent in USD, EUR

Up to 24 Unsecured for an

amount up to 150

thousand MDL

Microcredit For investment Unlimited, from 20

Maximum 60

ProCredit Bank41 Credit for agriculture up to 10 EUR

(equivalent in MDL

12 21 – 23.50 secured 13 – 36 20.50 - 23 37 - 60 -

10 - 20 12 20 – 22.50 13 – 36 20.50 - 23 37 - 60 21 – 23.50

20 – 50 12 19 – 21.50 13 – 36 19.50 – 22 37 - 60 20 -22.50

over 50 12 17.50 – 20 13 – 36 18 – 20.50 37 - 60 18.50 - 21

Victoriabank • The maximum amount of loans - 150,000.00 USA Dollars or its equivalent in MDL; • The loan term – up to 15 years, with a grace period of up to 3 years; • The following general activities are eligible for financial loans:

1. investments in agricultural farms aimed at developing agriculture and horticulture production; 2. investments for the development of processing, storing, packaging, trading and other agriculture related activities; 3. investments in other activities in rural areas; 4. replenishing of the floating capital in cases when conducting the above-mentioned economic activities (not exceeding 10% of the project amount).

The following legal and individual entities are eligible to this credit line:

• conduct an entrepreneurship activity, inclusively: 1. private entrepreneurs; 2. private farmers; 3. organisations or production groups of any legal form of organisation, involved in agricultural activities

(processing, production, trading of agricultural products); or 4. other entrepreneurship activities in rural areas (excepting town of Balti and Chisinau);

• conduct their activity in rural areas and have a technically and financially viable business plan, cash flow and capacity to satisfactorily reimbursement of loans; • provide their own contribution not less than 20% (10% - for new sub-borrowers) of the total cost of the

investment indicated in the business plan;

39 http://comertbank.md/en/services/juridical_person/credit/?id=1#i 40 https://www.mobiasbanca.md/microcredite_pj 41 http://www.procreditbank.md/files/Lista_de_Preturi_Produse_Creditare_01_12_15_ROM.pdf


• have a sufficient guarantee (pledge), the value of which has been estimated by a licensed company and present personal guarantees (as the case may be); • undertake to hold an insurance for the pledged goods with an insurance company accepted by the

Bank.

The current interest rates – established individually depending on the project, financial situation and credit history of a client

Source: elaborated by the author

• Financing from budgetary resources

For accounting expenditures in agriculture according to the Moldovan budget classification is used Functional Group 11 "Agriculture, forestry, fishery and water management". At the same time, from the budget is carried out and other expenses that are related to agriculture. First, here it is necessary to mention the expenses related to agricultural education (Functional Group 6) and operational expenditure in Functional Group 10 for social assistance on MAFI line (Table 15). Given the overwhelming weight of Functional Group 11 and the importance of agricultural education spending, these groups will be prioritized in the following analysis, not taken into account the social assistance.

Table 21 Dynamics of budgetary allocations for agriculture activities on functional groups (million MDL and %)

Functional Groups 2009 2010 2011 2012 2013

Agriculture, forestry, fishery and water (Gr. 11)

1034,10 (90,00%)

857,70 (87,30%)

843,50 (86,80%)

1272,70 (89,90%)

1386,30 (90,70%)

Education (Gr. 6) 113,40 (9,90)

123,70 (12,60%)

127,20 913,10%)

141,70 (10,00%)

139,90 (9,20%)

Social assistance and protection (Gr. 10)

1,30 (0,10%)

1,30 (0,10%)

1,40 (0,10%)

1,50 (0,10%)

1,80 (0,10%)

Total 1148,80 (100%)

982,70 (100%)

972,10 (100%)

1415,90 (100%)

1528,00 (100%)

Source: The Ministry of Finance (BOOST)

Allocations for agriculture, forestry, fishery and water have increased significantly in the last 3 years. The evolution of expenditure from Gr. 11 may show three distinct periods in terms of budgetary allocation dynamics. In the first phase 2000-2007, budget expenditures have increased both in nominal terms, as well as real reach the maximum in 2007, equivalent to 2.3% of GDP or 5.48% of total budget expenditure. In the next period 2008-2011, spending steadily decreased, and then in 2015 to recover completely in relative terms the positions with a share of 2.18% of GDP, registering an impressive growth in nominal terms up to 2.6 MDL billion (figure 8).


Figure 16 Dynamics of expenditure for agriculture in absolute terms (million MDL, left axis) and relative terms (%, right axis)

%GDP % Total expenses

Nominal agriculture expenditure

Real agriculture expenditure

Source: Expert Grup42

Volume and structure of budgetary allocations to support the agricultural sector are extremely important for the performance of this sector. In great part, financial allocations for agriculture in the last decade did not contribute to the sustainable growth of the agricultural sector and poverty reduction. Although budgetary allocations have increased significantly in the last ten years, the volume of animal production and plant growing, in real terms has not increased.

Higher performance of the agricultural sector can be achieved not only by increasing the volume of budgetary expenditure, but also by reviewing the current model of agricultural financing. To achieve this objective, emphasis in planning budget allocations must be made both on the technical efficiency by increasing the efficiency of public investment, as well as the efficiency of allocation of resources. In the latter case, the hierarchy of priorities in key areas of medium term expenditure can raise domestic agricultural sector to a qualitatively new level of growth.

• Financing from external resources

In October 2015 the Moldovan Parliament ratified the Financing Agreement between the Government and the European Commission on the implementation of ENPARD Moldova PROGRAM - "Support for Agriculture and Rural Development".

ENPARD tool was released in March 2011 through a joint European Commission and the European External Service. In June 2012, the first ENPARD Conference in Brussels was presented a first vision of such an instrument for the Eastern Partnership countries. The program ENPARD became a new initiative policy, as part of the EU's commitment to inclusive growth and stability on the borders of the Community, which recognized the importance of agriculture, including food security, sustainable production and employment in rural areas.

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Assistance from the European Commission represents a support for the budget of Moldova from the European Commission, aimed at supporting Government efforts in eradicating poverty, promoting sustainable growth, increasing food security and employment in rural areas. The program will contribute to: • export capacity development of the main products on the EU market and, consequently, increasing

the impact on GDP; • restructure and modernize the agrifood sector; • ensure sustainable management of natural resources; • improve the living and working conditions in rural areas; • transposition of standards and requirements for quality, safety and control of the European Union; • increase the competitiveness of agricultural production through investment in modernization of agri-

food and feed chain; • development of education services, research and extension of food sector, including facilitating the

development of information systems; • reduce agricultural regions affected by natural disasters and mitigation of climate change; • facilitate investments in physical infrastructure and rural services.

The total value of ENPARD program constitutes 64.075 million Euro, including: • 53 million Euro - sector budget support component;

• Other over 11 million Euro - complementary support component / technical assistance for scheduled checks.

In annex no. 2 are presented the external assistance projects for agricultural sector in current year.43

43 www.maia.gov.md


IV. SUPPLY CHAIN ANALYSIS 4.1 Soy seeds producers

a. List companies, names, firms

To produce seeds for placing on the market, local operators must be enrolled in the register of NFSA of registered operators for the production and / or processing and / or marketing of seeds. For 2015, there are 10 local registered producers that have a total amount of 640.3 MT of soy seeds.

Table 22 List of registered soy seeds producers in 2015 # NAME Town Variety

denomination Reproduction Quantity, MT

1 LLC "Soevii Vek-M" Chisinau Annushka C-1 133

2 LLC ”Golserv-Agro” Edinet Aura C-2 30

Indra C-2 30

Enigma C-2 10

3 LLC ”Agrotehimpex” Singerei Galina 50

4 LLC ”Valea Sofiei” Drochia Aura 100

Annushka 100

5 SC ”Cutezatorul Agricol”

Riscani Aura B 30

6 SA ”Acord” Riscani Annushka C-1 21

Aura B 10

Enigma B 11

7 LLC ”Tetracom Agro” Floresti Annushka C-1 21

8 IS ”STE Balti” Balti

9 SEL ”Agrosalvia” Drochia Aura C-2 20

10 ICCC ”Selectia” Balti Enigma PB 24

Indra PB 42.3

Aura PB 8

640.3

Source: NAFS

According to official data, in 2014 were imported soy seeds in a total quantity of 48.63 MT amounting 61.5 thousand USD. The biggest quantities were imported from Serbia and Ukraine, 44.8% and 43%.

Table 23 Soy seeds imports Country Quantity, MT Amount, USD

Ukraine 21.128 19.0

Austria 0.350 0.1

France 0.223 2.8

Italy 4.989 2.8

Serbia 21.800 35.9 Source: NBS


b. Business practices

Practices used in trade of soy seeds are generally 3 types. The first is direct purchase by producers from soybean providers. These may be local or foreign suppliers. Another type of seed supply is through cooperatives and last method is when producers are supplied with required quantity of seeds by traders, as a separate legal entity. The supply of seed is usually in the period immediately before seeding to avoid seed storage (for storing seeds need special warehouses).

4.2 Producers of soy a. List companies, names, firms

According to the local database, there are 246 producers of soy, of which 24 declare that are producing also GMO soy. The list with addresses and contact details is presented in the annex No. 3.

b. Identification of the main micro zones and soybean producers, size, ownership, composition,

structures, financing, etc. of producers

Almost of soybean producers are located in the Northern part of the country, where the weather conditions are more favorable for soy cultivation. See chapter I.

c. practices of cooperation, e.g. cooperatives, clusters, etc. good and / or innovative practices

A practical cooperation in agriculture is the cooperatives44 - economic organization formed by a group's free association of farmers for the production, purchase, sale of agricultural products in common. In the cooperative, the trader as a member of the cooperative provides farmers with seed material, fertilizers, machinery for the works required in order to secure the necessary volumes, which are subsequently exported by the trader. All cooperative members in their activities have obligations and responsibilities as stipulated in the cooperative status.

Another practical cooperation is when a trader acts as a separate legal entity. Relations between traders and each manufacturer are provided in their bilateral agreements. Assuring future crop soybean harvest the trader supplies producers with seeds for harvesting, plant protection products, fertilizers, soil and harvest processing technique. The producers sell the harvested soybean at the price imposed by the trader. On one side, through this mechanism, manufacturers shall ensure that after harvesting soybeans, they will have safe market, on the other side, the price set by trader when signing the contract is not always the best on the market.

d. Farmer associations

The activity of producer groups is regulated by the Law no. 312 of December 12, 2013 on agricultural producer groups and their associations. Law establishes the legal framework for the organization, recognition and operation of groups of farmers, aimed at harnessing production group members, improve the efficiency of their production planning, concentration of supply, the organization dissolution of agricultural products and the terms of financial support, related to the organization and functioning.

A producer group may constitute one of the types of organization under the laws in force, consisting of at least 5 members, farmers, none of which hold more than 20% of votes at the general meeting. Nowadays the producer groups are in process of creation; especially it is currently for the producers of fruits and vegetables. In the cultivation of annual crops the producers are studying the opportunities.

44 Law no. 1007-XV dated April 25, 2002 on cooperatives


An important role in the agricultural sector in Moldova belongs to extension services and farmers' organizations at the national level, through policies and programs designed to support the people involved in farming. In financing activities, all these bodies are based on third party organizations and donor’s patronage. Currently, national extension and farmers' organizations are represented by: • National Agency for Rural Development (ACSA) - is a non-governmental organization with the mission to contribute to the sustainable development of rural communities through the creation and development of a professional network of information, advice and training service providers of vocational training for farmers and rural entrepreneurs. ACSA ensure access of rural population to knowledge, experience and skills in a wide range of areas facing economic development of villages in Moldova. ACSA currently manages a network of 35 service providers, employing about 425 consultants, of which 75 are regional consultants and 350 - local consultants. Information, counseling, training services are available to more than 60% of the rural population. Networks counseling by public tender are established annually by a special committee; • Republican Union of Agricultural Producers’ Association (UniAgroProtect) comprising 17 agricultural associations, bringing together 24 307 medium - sized enterprises and 2238 small farmers by processing about 800 903 hectares together (50% of agricultural land in Moldova). UniAgroProtect objective is to provide information and consultation for its members; attracting investments and implementing new technologies; promoting the image of members in relation with potential investors to the development of marketing; and enhance efforts to negotiate product prices; • National Farmers Federation of Moldova (NFFM) is a non-governmental organization established in 1998. The aim of NFFM is to improve the welfare of rural population through the development and protection of civil, economic, social and cultural rights of all landowners and persons how practice agricultural services. Currently, NFFM has 11 regional organizations, 9 Information and Advice Centers, over 700 local organizations, and includes more than 27 000 farmers. • National Federation "AGROinform" is a network of regional non-governmental organizations oriented towards support private agricultural producers in Moldova by providing technical assistance and professional services consulting. Currently, the National Federation AGROinform comprises 27 non-governmental organizations - regional states.

The advisory services and farmers' organizations actively participate in the process of making decisions on agricultural policies and rural development, influencing the decisions of government or those local authorities, to support the rights and interests of farmers, agricultural producers in promoting and developing the agricultural sector of the country. The creation of the farmers groups is regulated by law and the Government with the support of Donau Soya and EU partners could elaborate a development program for production and processing of soy putting as condition for farmers to create groups that would raise the efficiency of the mentioned program.

e. Challenges: e.g. in production, financing, logistics, quality, marketing, etc.

Moldova's agricultural production is entirely dependent on imported agro-chemicals, seeds and fuel and this has an impact on the competitiveness of its agri-food products. The primary inputs (fuel, fertilizers, and chemical products for plant protection) for agricultural production are all imported. This dependency makes Moldovan agriculture subject to international price volatility.

Soybean production development program supported by the EU require monitoring at all stages of implementation. SGS offers monitoring and inspection programs in agriculture including crop production compliance rules for the production of crops throughout the all chain - from the ground to harvesting and trade, issuing needed certificates. For Donau Soja Association is recommended to initiate the creation and training of pilot groups of farmers. The stakeholders of pilot group no. 1 should be soy producers, collectors and exporters, for pilot group no. 2 - soy producers, processors and traders of soy meal to local livestock producers or EU. SGS will provide training services, soy certification according to the standard of Donau Soja Association and will provide services of inspection of the quality and quantity of goods in


the delivery process. It is recommended that the association Donau Soja covers the connected expenses for creation of groups, training, certification, inspection and methodological assistance in the scheme of product development, technology recommendations in soy production and export, marketing performance in the EU. A condition for financing would be that the producers will export certified soybean and soy products in EU, therefore the producers will be financed after the export. The outcome of these pilot projects would be a report with practical recommendations for the implementation of the project of Donau Soja. The pilot projects should include large and small farms.

Insufficient access to quality inputs remains a constraint for competitiveness in a number of subsectors. Agriculture producers rely mainly on imported seeds and seedlings and are the most affected by the lengthy and costly variety registration procedures. The testing and registration requirements regulating imports of seeds and seedlings are perhaps the most critical constraints and are currently singled out by stakeholders as an obstacle to production of more competitive crop varieties due to the costs involved and the delay in access that these requirements create. This also poses an obstacle to the access to quality inputs for the agri-food processors.

4.3 Processors a. Actors (list companies, names, firms, etc.), location, volumes.

Currently, Moldova oil industry represents about 2% of the food industry, which shows a decline compared with 1995, when constituted about 3%. The main position (95% of the total output of the sector) is occupied by sunflower oil.

In Moldova there are 3 major oil-extraction plants that produce vegetable oil from sunflower, soybean, rapeseed and oilseeds meal: 1. "Floarea Soarelui" SA. It is located in the Northern part of Moldova. It belongs to the Trans-Oil

Group of Companies. The company is capable of processing 300 thousand metric tons of oilseeds per year;

2. IM "Trans Oil Refinery" LLC. It is located in the Southern part of Moldova. It is a subsidiary of the Trans-Oil Group of Companies. Daily processing capacity is up to 450 metric tons and oil storage capacity of 3500 metric tons; here is producing only sunflower seeds.

3. "Bendery Oil Extraction Plant" SA. It is located in the central part of Moldova. The plant is part of the WJ Group. Daily crushing capacity is up to 320 metric tons of soybean (up to 130 thousand metric tons per year). Nowadays it is temporarily closed.

There are some small enterprises that process the soybeans (see annex No.4). Their quantities are not significant and it is used on local market (for food industrial enterprises (the oil) and poultry enterprises).

Given the rich harvests of previous years, authorities prioritize subsidizing production processing factories to reduce abuses to the commercialization of products undertaken by speculators or agents monopolizing the market. b. Methods and technologies of processing in Moldova: mills, toasting, drying, etc.

The soy is processed by crushing in small mills, as result is obtained soy oil and cake. The oil ratio of soy processing is about 20%, the rest being the cake that is used for local feed production.

4.4 Distribution and business practices

The distribution of soy processed products, especially soy oil, are assured by distributors, some of them are also importers of soy oil. See annex no 5.

4.5 Control bodies, certification

NAFS (as central authority) is considered the control body for all the supply chain of soy.


SGS, as official registered inspection company, perform inspections and expertise (as well as laboratory tests) of cereals and oilseeds for import/export procedures.

4.6 Transport, logistics a. Practice of export and exchange of soy and meal.

Soybean export. Soybean exports from Moldova takes place through three types of transport: road, rail and sea. They may be of a type (road) or, most often combined, depending on the quantity exported and the country of destination.

Railway transport In 2011, the grain market in Moldova has tended to be monopolized by Trans-Oil Group of

Companies by buying existing elevators and lease railway wagons. The aim was to impose its pricing to farmers by collecting products in these elevators, which then could be transported only by wagons leased by Trans Oil. Then manufacturers and traders who did not want to make the game of this monopoly, rent wagons from Ukraine and Belarus, which were in transit for transporting goods to ports. The main railway junctions of Moldova are Chisinau, Ungheni, Ocnita, Balti and Basarabeasca. Foreign direct connections with Odessa (Ukraine) to the Black Sea and Romanian cities Iasi and Galati interconnects republican network.

At the border between Moldova (the railway is broad gauge) and Romania (the railway is standard gauge - European wagons), there are 2 options: - the wagon wheels are changed from one track to another; - the packed goods are transshipped from broad gauge wagons in European wagons.

From Moldova to Galati (Romania) is broad gauge railway. The wagons with agricultural products coming from Moldova in Galati are transshipped in barges, boats, cars. For transportation of agricultural products in neighboring countries of Europe (Romania, Turkey, Italy, etc.) more practical are the trucks. In recent years for the export of agricultural products in bulk from Moldova to distant countries of Asia are used the containers.

Road transport For soybeans transportation with road transport machines are used, whose total weight must not

exceed 40 MT (according to internal rules of road transportation). The maximum amount of product that can be transported on highways by these machines is 25 MT. Most manufacturers / traders use their own transport or rent from transport companies to bring agricultural products to collection points / elevators to port. This mode of transport is the most requested by exporters in terms of costs.

Sea transport Moldova is a country almost entirely landlocked, except of a point of 200 m, fluvial / sea direct of

distribution and or transhipping in / from Moldova to Giurgiulesti International Free Port, in the extreme south, where the Danube forms part of the border. For temporary storage of soy products, the GIFR is equipped with: - Vegetable oil terminal (with a storage capacity of 6,000 MT and capacity of loading vessels of a size of up to 10,000 dwt). The vegetable oil terminal of GIFR started its operations in November 2011. SC “Trans Bulk Logistics” LLC, a subsidiary company of Trans Oil Group of Companies, constructed and operates the grain vegetable oil terminal in collaboration with Danube Logistics. - The grain terminal started its operations in July 2009. The terminal has a storage capacity of 50,000 MT and can receive up to 3,000 MT of grain per day by railway or road transportation. At the same time vessels with a size of up to 7,000 MT can be loaded with a loading speed of up to 300 MT per hour. SC


“Trans Cargo Terminal” LLC, a subsidiary company of Trans Oil Group of Companies, constructed and operates the grain terminal in collaboration with Danube Logistics45.

This type of transport is advantageous for large volumes of cargo. There are used for two types of ships: - bulk carriers – which have sections of different volumes. - container ship – for distances greater than Turkey, is used this type of ship. Containers are loaded directly at the point of collection / elevator, transported by road and piled up in port on ship. This method saves storage costs in port warehouses.

The ports used to export of products Fluvial / sea ports (for these ports are limitations of crossing the Sulina channel as the water flow is

low and the vessel accepted for these ports must have a capacity up to 7,000 MT): • Giurgiulesti • Reni, (Ukraine) • Braila, Galati (Romania)

Sea ports • Constanta (Romania) • Odessa, Iliciovsk (Ukraine)

There are also some ports on the Prut river, affluent of Danube, in which the goods can be loaded into the barges which continue its path on Danube river.

b. Costs of transport

The traders usually use 3 types of shipment delivery for soy exports – FOB, CPT and CIF. Below it

is shown the costs for every type of delivery.

• FOB (Free On Board) is a term in international commercial law specifying at what point the seller transfers ownership of the goods to the buyer. Under the Incoterms 2010 standard published by the International Chamber of Commerce, FOB is only used in non-containerized Sea Freight, and also defines ownership transfer. The owner of the goods is responsible for damage or loss during transport, so the point of ownership transfer is important. The costs of goods transportation to the port under this terms are: by trucks – 1.8 USD MT/km (max. 24 MT on truck), by wagon – 30-35 USD/MT, by container – 22-26 USD/MT. • CPT (Carriage Paid To) – means that the risk of damage or loss to the goods being transported is transferred from the seller to the buyer as soon as the goods have been delivered to the carrier. The seller is responsible only for arranging freight to the destination, and not for insuring the goods shipment when it is being transported. The term CPT is typically used in conjunction with a destination. The costs of goods transportation to the port under this terms are: by trucks – 1.8 USD MT/km (max. 24 MT on truck), by wagon – 30-35 USD/MT, by container – 22-26 USD/MT, loading on the ship and carriage by sea – 42 USD/MT. • CIF (Cost, Insurance and Freight) - is a trade term requiring the seller to arrange for the carriage of goods by sea to a port of destination, and provide the buyer with the documents necessary to obtain the goods from the carrier. This term is used usually for export to Turkey, the costs of ship by sea is 25 USD/MT (from Reni port to Turkey).

Costs for storage in the port terminals. The storage of dry bulk materials in the terminals is charged with 0.25 USD per MT per day for a period of 6-10 days and 0.50 USD per MT per day for a period over

45 www.gifp.md


11 days. The storage of oil products is charged as follows: - for 15 – 30 days – 3 USD per MT per day, 31 – 60 days – 4 USD per MT per day, for 61 – 90 days – 5 USD per MT per day.46

Exports: Goods originating from the International Port and exported from the International Port to the rest of Moldova or abroad are exempt from any form of customs duties, except for a nominal customs procedure fee. Imports: Goods imported to the International Port from the rest of Moldova or from abroad are exempt from any form of customs duties, except for a nominal customs procedure fee.

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V. Results of interviews SWOT analysis

Strengths: • The government has a clear strategy for the strategic development of agriculture, as set out in the

National Strategy for Agriculture and Rural Development; • 75% of the total land area is arable, the highest level in Europe, of which over 75% of farms are

privately owned. • Labour productivity in agriculture has increased in recent years. • Markets including land, agricultural products, financial markets, are in a process of continuous

development. • There exists institutional framework for the formation of farmers groups; • 'Moldova' is a well known brand, especially in the CIS countries, especially for wines, alcoholic

beverages and fresh products. Weaknesses: • Although agricultural policy in the country is developed, there is no policy, strategy or plan of action

for development of the soy sector, including the designation of competent authorities. • Budgetary allocations for agriculture are low. • The process of harmonization from center is not accompanied by implementation in the regions, due

to budgetary constraints. • The process of e-agriculture, which includes paying agency, is underfunded. • Productivity is low compared with countries in the region and varies greatly from year to year. • Vulnerability to a number of risks, including erosion, landslides, droughts, floods and heavy rains,

hail, frost and earthquakes. • The practice of a type of semi-subsistence farming on small and fragmented lands, in practical way,

between growers and farmers there is no cooperation. • Insufficient promotion of high value products to achieve and safety standards required by foreign

markets • Insufficient level of research and market development. • Poorly developed market infrastructure, including handling, storage, packaging, processing, cooling

and distribution. • The current legal framework related to fiscal policy in agriculture contributes significantly to

increasing tax evasion and informal sector development in agriculture. This situation does not help increase revenue in local budgets, which hampers decentralization process in Moldova.

Opportunities: • Opportunity to develop a profitable and productive agriculture. • Proximity to the developed countries and the EU may allow a rapid transfer of technologies that will

increase productivity of the sector. • Land consolidation to be effectively managed and administered, which will create new opportunities

in the agricultural sector. • Creation of producers associations; • To gain access to new markets, particularly in EU markets it is necessary to upgrade quality

management. • Improvement of the business and investment climate will allow increasing investment in the sector

from local and external sources. • Improvement of rural infrastructure by developing roads and social structures will support business

development in rural areas, and, consequently, employment and income.


Threats: • Depopulation and migration trends resulting in a significant level of depopulation of rural areas. • Improvement of productivity is constrained by the old plantations and degraded irrigation

infrastructure. • Weak links in supply chains and lack of access to markets for primary producers. • Slow progress in transition from GOST standards to international standards. • In agriculture there are no requirements on cross compliance / best practices with reference to

agricultural support mechanisms. • Lack of investment in agriculture as a result of non favorable business and investment climate,

including the situation with ownership of land by companies with foreign capital. • The frequency of natural disasters, including droughts, floods and hail. • Lack of risk protection strategies. • Political uncertainty regarding policy coherence and strategy. • Political instability.

Market potential

Over the past 10 years in Moldova are annually cultivated soybeans on a total area of about 55-60 thousand ha, with an annual average harvest of 1.6-2.0 MT/ha and an average total harvest of 100 000.00 MT/annually. The potential growing of cultivated areas with soy in the next 4-5 years by 100 thousand ha is based on the following:

• Culture of soy requires a lot of moisture in the cultivation process. Considering that the country is in the process of implementation of USAID project to renovate the irrigation system of agricultural areas, soybean sown areas may increase.

• The development of the livestock sector. • Apply the rules in crop rotation and soil processing tightening state control in this field. Soy is

good in crop rotation. • Implement DS project • Following those set up until 2020, can be collected the amount of soy – about 200 000.00

MT/year. For example in 2016 the area of soy may increase by 15-20% and reach the figure of 75-90

thousand hectares with a harvest of around 130-140 thousand MT. The information is based on MAFI data, as in the fall of 2015 because of the summer-autumn drought remained unsown surfaces with 15% less than in 2014. If DS starts promoting the project in the winter of 2016, farmers in interest to increase profits in the spring of 2016 will sown more surfaces with soy.

Potential partners for future collaboration

During our interviews with local participants within the soy supply chain, almost were interested in a potential collaboration and joining the program. The only condition is the ability to present the project in a way that they would be attracted by the financial advantages. The list of interested part can be presented at request.

Potential for creation of clusters and innovative forms of collaboration

Clusters represent a new mechanism for the Moldovan economy. Moldova through the Ministry of Economy is part of the Cluster Initiative of South Eastern Europe. The aim of the initiative is to deepen partnerships with existing EU bodies to support cluster policy. Moldova needs of developed cluster policies, the implementation of which will draw legislative initiatives "from below, from the business environment". The development of this initiative is studied during the project Cluster poliSEE "Intelligent


Cluster Policy for South Eastern Europe", financed by the European Union. In the agribusiness sector of Moldova there is no classic cluster. There are several cooperatives whose members are farmers and traders, for example AGROSTOC.

In the future is possible the organization of clusters of grains and oilseeds producers, collectors, processors and traders, but this action is at the study level and promotion of the idea.

The main causes that negatively influence the development of clusters, such as: • low level of involvement of companies both large and from the SME sector, • lack of cooperation between manufacturing enterprises and institutions of research and

innovation, • limited exchange of information in business, • poorly developed partnership relations between business environment and local authorities, • lack of own resources, lack of budget financing and high rates on bank loans for modern

infrastructure projects.

Proposals on how to support small farmers and workers in agriculture DS project for small farmers can be developed only with other agricultural projects operating in

Moldova. Small farmers are urged from these projects to produce high value-added agricultural goods and

food such as fruit, vegetables, and berries in protected and unprotected lands. The government proposes to form small groups of farmers who process till 10-20 ha of agricultural land. In this case there are certain grants to these groups. DS project can be incorporated into this concept to farmers who grow crops during the year using soybeans as the crop rotation plant.

In Moldova there are several programs and projects financed from abroad in order to support small farmers and agricultural workers. That projects like ACED (http://www.aced.md/) financed by USAID, IFAD (http://businessportal.md/ro/projects/finantare/proiect_ifad.html), HEKS Moldova (https://www.heks.ch/), etc

It is necessary to prepare an appeal of collaboration from DS with those projects in agriculture. For small farmers and farmers groups it is necessary to organize their information through mass-media and later informational seminars and trainings. It is necessary to introduce in DS Standard rules for certification of small groups of farmers. Also, it is important to recognize the certification of soy with other standards as GlobalGAP or Organic, which will reduce, in a certain manner, expanses for double soy certification in many systems of certification. It is recommended that DS will revise their standard in order to simplify the requirements of its application and the use of benchmarking method in recognizing other systems of certification and accreditation.

Identified areas for training and capacity development, both with farmers and in administration and quality control The project aimed to increase the volume of the Donau Soya production of soy in the Danube region, with non GMO quality and controlled origin which must bring a valuable contribution by providing the EU with protein. To achieve this project one of the important goals is identifying participants in the chain of production, collection, processing and export of soy and mechanisms of information and training in this chain.

Training and skills development for soybean production, management and quality control is required for the following participants:

1. Farmers 2. Suppliers of seeds, fertilizers and pesticides 3. Traders and collectors 4. Farmers associations 5. Processors and exporters 6. Representatives of central and local administration of the Ministry of Agriculture of the Region

where soybeans are grown.


7. Representatives of central and local administration of NFSA, responsible for quality and safety contol of food products.

8. Representatives of central and local administration of environmental protection authority. 9. „Selectia” Institute. 10. Representatives of foreign funded projects in agriculture. 11. NGO non-governmental organizations in the field of agriculture. 12. The EU representative in Moldova.

Note: In the process of organizing the training to involve central and local authorities.

The scheme of the organization of training for participants in soybean supply chain should be planned taking in consideration the geographical factor and the availability of the participants to move to regional centers. It would be great to have an Information and Training Center of the DS project in SGS Moldova office: the place where the producers/processors/collectors can found necessary information and services throughout the all chain from growing up to export.

For the realization of this important topic is necessary:

a) To prepare programs and trainings in Romanian and Russian languages. b) The training will be delivered and approved by the Danube Soybean Association. c) Training material distribution to participants. d) Questionnaires for participants. e) Organization of meals for participants. f) Identification of training rooms. g) Financing of actions.

Need for investment in research and innovation

Strategic conducting research and innovation in development of DS projects require a project framework that must be mandatory coordinated with all government programs and donor-funded projects in agriculture. In planning the short and medium term action plan is required to inform farmers about training standards requirements of DS. It is important to motivate the benefits of the project for all participants in the DS project. For short-term implementation plan is needed, starting with the first months of 2016 to start information and training of farmers.

Next steps

1. Selection of projects and programs aimed at developing the agro-industrial sector of Moldova. 2. Study projects and programs under the aspect of DS project goals. 3. Study of local potential (research institutions in the field). 4. Harmonization of goals and mechanisms of implementation of DS project with all the projects listed below.

Conclusions and recommendations - Options • Agriculture is an important factor in the Moldovan economy. • Mostly cereal character of Moldovan agricultural production structure. • Growing annual grain crops are needed for farmers to effectuate rapid return of investments. • Asysmetric development in plant and animal production and agri-food sector generates export of

cereals and ingredients for feed production. • Preventing animal products in the coming years in the EU market. • Control of state authorities of Non GMO soy cultivation.


• Labour migration from the country, generates the production of technical crops from which soy takes part.

• Soy is a profitable crop that has the possibility of rapid development in the future taking into consideration listed functionalities.

• Moldovan agriculture need to harmonize with EU requirements. • Pilot projects.

- Scenarios • Starting the project in short term with the support of government authorities and agricultural projects

financed from abroad. • Non GMO soy production increase until 2020 in the amount of about 100,000 MT. • Export of non-gmo soy production in the EU for obtaining a higher profit compared with other

markets. EU market stability. • Impairment of agriculture, annual plants, periodic drought, once in 3-5 years will reduce the

production of soy. • Growing require for Asian markets of cereal products including soybeans will reduce soybean

imports in the EU. • Development and growth of the livestock sector will reduce exports of soy. • Agricultural development on products with high value, reduce soy surfaces so that replacing them

with crops such as peas, beans etc.

- main messages for communication with the public

Messages addressed to the target groups should be written in an accessible way, using an understandable language, avoiding technical terms and using concrete examples and successful projects, giving to the DS project a positive image. 1. GMO free soy production and realization on the EU market is profitable. 2. The EU is a big market and ever-increasing, stable and well defined with clear rules. 3. The production of soy is beneficial to the crop rotation. 4. Methodological support to all participants in the chain of soybean production. 5. GMO free soy food products are good for the health of consumers.

- next urgent steps47 1. Starting in short terms the program of information and training to participants in soybean production. 2. Organizing of pilot projects which would include at least 2 producer groups; 3. Involvement in projects and future action for implementing the objectives of the DS Development

Strategy. 4. Identification of potential actors for DS project promotion and training for the supply chain

participants. Donau Soja can ask for assistance and help different institutions such as MAFI, National Association of Farmers, Agroprotect Association, SGS, European Business Association etc.

5. As a tool: Establish a system of awards for the participants to highlight soy production chain. 6. Sources identification for financing of DS program.

47 The actions which have to be taken concerning the Donau Soya project in Republic of Moldova has to consider the potential of Transnistria region as part of Republic of Moldova.


Annexes

1. Codes of the characteristics used for variety description (part of study)

2. Foreign assistance projects in the agrifood sector, 2015 (part of study)

3. Lists of soy producers (part of study)

4. Lists of soy processors (part of study)

5. Lists of soy distributors and traders (part of study)

6. Strategy for Agriculture and rural development 2015-2020 (apart of study)

7. Deep and Comprehensive Free Trade Agreement (DCFTA) (apart of study)


Annex 1

Codes of the characteristics used for variety description

1. Region for cultivation – column 7 A. Field crops and vegetables I – Northern zone – districts Briceni, Glodeni, Donduşeni, Drochia, Edineţ, Camenca,- Ocniţa, Rezina,

Rîbniţa, Rîşcani, Soroca, Sîngerei, Făleşti, Floreşti and Şoldăneşti. II – Zona de Centru – districts Călăraşi, Criuleni, Nisporeni, Anenii Noi, Orhei, Străşeni, Teleneşti,

Ungheni, Hînceşti and Ialoveni. III – Zona de Sud – districts Basarabeasca, Vulcăneşti, Grigoriopol, Dubăsari, Cahul, Cantemir,

Căuşeni, Comrat, Leova, Slobozia, Taraclia, Tighina, Ciadîr-Lunga, Cimişlia and Ştefan-Vodă. R – all the regions E – for export

B. For grapes

C. For fruit trees and shrubberies

2. Use direction – column 8 Code english b grain

sl silage

fr forage

pc pop-corn

bl highlyzin content

z sweet

wx waxy

ba white grain

al food

cr cereals

in food industry

cp fresh use

pz fresh use of leaf

sm seeds

cf confectionery / candy

br beer industry

mt broom

tă fresh cutting

în landscape gardening

vz pot (flower)

mu salting

p wilding

pf perfumery

ps for keeping

md medicine

pt high gluten content


cg for carly forst

u universal

f french fries

se variety of energy 3. Type of gowing – column 9

a alternative

p spring

t winter 4. Maturity group – column 10 01 very early

02 from very early to early

03 early

04 mid early

05 medium

06 mid late

07 late

08 from late to very late 09 very late

5. Type of plant, fruit – column 11 în tall

mj middle high

j low

d determinate

nd indeterminate

pl vigorous pm medium vigorous ps low vigorous pr parthenocarpy du sweet iu chilli si medium chilli

va summer crop

to autumn crop

ia winter crop

co moderately triangular

cal narrowly triangular

r circular

rt oblate

ca truncated conical

ov ovate

ci cylindric

cia narrow oblong

oa long-ovate


ro elliptic

fc square

ve green

ga yellow

rş red

or orange

a white

ng black

rz pink

mr brown

k head

sk semi head

cr bushy

fr for leafs

rd for roots

an pineapple

gl galia

cs crimson sweet

şb sugar baby

pt for cerely

ap flattened

lu long

fs without seeds

6. Type – column 12 F1 hybrid Ist generation HS single cross (hybrid)

HSM single modified hybrid hybrid HD double hybrid

HT three way hybrid

HC complex hybrid

SL variety x line cross S variety L line

7. Conditions for cultivation – column 13 tp green house

cd open field

gp private farm psu on pylon


Annex 2 Foreign assistance projects in the agrifood sector, 2015

No. Project title Type of assistance General objective Buget Implementation

period Financer/Implementer

1. Disaster and Climate Risk Management Project (Component C: initiate activities for adaptation to climate risks in agriculture).

credit Contributing to poverty reduction through disaster risk management in order to protect the most vulnerable segment of society.

2 million USD (total budget of project – 10 million USD)

2010 - 2015 World Bank

2. Agriculture Competitiveness Project

credit Enhance the competitiveness of the agro food sector by supporting the modernization of the food safety management system, facilitating market access for farmers, and mainstreaming agro-environmental and sustainable land management practices.

28,4 million USD 2012-2017 World Bank

3. Rural financial services and agribusiness development project (IFAD-V)

credit Supporting the efforts of Moldova in the agricultural sector, this will meet the local market as well as exports.

20 million USD

(Credit source exhausted)

2011 - 2016

International Fund for Agricultural Development (IFAD)

4. Inclusive Rural Economic and Climate Resilience Programme (IFAD-VI)

credit/grant The overall goal of the IRECR is to increase the income and climate resilience of the rural poor.

25,8 million USD 2014-2017 International Fund for Agricultural Development (IFAD)

5. Food Security Project for Underprivileged Farmers 2KR

grant These funds are then used for local economic and social development projects focusing on supporting small-scale farmers and implementing measures against poverty.

21 million USD

2000 - present

Japanese Government

6. Credit conditional assistance credit Increasing competitiveness through restructuring and modernization of agriculture, gradually increasing the

100 million EURO

(90 million EURO for

2014-2015 Government of Poland


share of high value added agricultural products.

agroindustrial

sector)

7. Improved Pesticide and Chemicals Management in the former Soviet Union

Technical assistance

The proposed project tends to assume a catalytic role in developing a systematic approach to obsolete pesticides, POPs and hazardous chemicals management in the region.

N/A 2012-2015 Food and Agriculture Organization of the United Nations (FAO) Donor 75% - the European Commission

8. Support for adaptation and implementation of Integrated Pest Management in Moldova


Support for the development and implementation of national programs on adoption and promotion of integrated pest management.

420 000 USD 2015-2016 Food and Agriculture Organization of the United Nations (FAO)

9. Development of the National Strategy and Action Plan for animal genetic resources and dairy cattle genetic improvement programme


Sustainable management of genetic resources in the livestock sector

320 000 USD 2015-2016 Food and Agriculture Organization of the United Nations (FAO)

10. Wine sector restructuring program credit The WSRP aims to contribute to wine sector recovery

75 million EURO 2011-2016 European Investment Bank

11. Project "Fruit Garden of Moldova"

credit Creation and modernization of orchards, procurement of equipment for improving resource efficiency in production, processing, post-harvest handling and logistics; providing training and research specific to the sector.

120 million EURO 2014-2020 European Investment Bank

12. Competitivitatea Agricolă şi Dezvoltarea Întreprinderilor


Increasing the Moldovan agricultural sector successes in producing and

15,9 million USD 2011-2016 USAID/MCC


(ACED) marketing high value products.

13. The Agricultural Competitiveness and Enterprise Development Project (CEED-II) (Component Wine and emerging export industry)


Advancing Moldova's efforts in promoting a strong, diversified and export-oriented, by improving the competitiveness and efficiency of national key industries.

9,2 million USD 2010-2015 USAID

14. Transition to high value agriculture grant Increasing incomes in the rural areas by encouraging high value agriculture and catalyzing investments into high value production. Project activities include: the rehabilitated centralized irrigation systems, and the producers who grow or intend to grow high value products.

102 million USD 2011-N/A MCA-Moldova


Annex 3

List of soybean producers

No Company name Contact person Address Phone E-mail Note 1. Abilitate Agro LLC Antonciuc Vasile Calugar, Falesti +37369323320 - P 2. Accesal-Grup LLC Agachi Vladimir Pepeni, Singerei +37369147836 [email protected] P, E 3. Acino-Agro LLC Arhipov Alexandru Panzareni, Falesti +37367385777 - P 4. Agdav LLC Airini Gheorghe Glodeni +37369023238 - P 5. Agro-Baraboieni LLC Cojocari Constantin Baraboi, Donduseni +37369235135 - P 6. Agro-Denisimus LLC Tiorsa Sergiu Cucuruzeni, Orhei +37379682104 - P 7. Agro-Panfil GT Panfil Gheorghe Plop, Donduseni +37379550484 [email protected] P 8. Agro-Product LLC FPC Gamureac Vladimir Colicauti, Briceni +37369262633 [email protected] P 9. Agro-SZM LLC Hropotinschi Victor Drochia +37369107139 [email protected] P 10. Agro Banig LLC Barat Nicolae Iabloana, Glodeni +37369051379 [email protected] P 11. AgroCristi-MS CAP Lisii Mihail Tarnova, Donduseni +37369143992 - P 12. Agrodenidan LLC SC Vornicescu Aliona Cotiujeni, Briceni +37369152054 [email protected] P, GMO 13. Agroferm Plus LLC Grecu Viorica Glinjeni, Falesti +37369112064 - P 14. Agrofix-Com LLC SC Silnic Valentina Hechiul Vechi, Singerei +37369631982 [email protected] P 15. Agrolăstar LLC Pascal Vasile Arionesti, Donduseni +37369203388 - P 16. Agrolivteh LLC Nazar Valentin Iliciovca, Drochia +37368568582 - P 17. Agromilari LLC Hlevnoi Raisa Ruseni, Edinet +37369294740 - P 18. Agromiorul LLC Carabet Mihail Tarnova, Donduseni +37360030040 - P 19. Agroplugar -Temp CAP Dobca Albert Tarnova, Edinet +37379546947 - P, GMO 20. Agroselect Vădeni LLC Sochirca Harlampii Vadeni, Soroca +37369125612 [email protected] P 21. Agrostoc CI Tagadiuc Igor Chisinau +37368007118 [email protected] P 22. Agrotehimpex LLC Prepelița Alexandru Balti +37369141098 [email protected] P 23. Agrounire LLC Agapii Oleg Corjeuți, Briceni +37369149037 - P 24. Aladiu Nord LLC Marandiuc Vasile Hechiu Nou, Singerei +37369106032 - P 25. Alaperius-Agro LLC Spanu Petru Bilicenii Noi, Singerei +37369143704 - P, GMO 26. Albeni-Agro LLC Bradu Aurel Fantina Alba, Edinet +37324677317 - P 27. Albvior LLC Albu Viorel Gordinesti, Edinet +37369132703 - P 28. AMG-Kernel LLC SC Gutu Victor Soroca +37323031259 [email protected] P 29. Amonti-Agro LLC Semenciuc Andrei Navirnet, Falesti +37368598143 [email protected] P 30. Angvilval LLC Sulima Vilea Rezina +37369214449 - P, GMO 31. Antagro C.B.S LLC Antoci Valeriu Putinesti, Floresti +37369339397 - P 32. Anvar-Com LLC Ghiletchi Alexandru Balti city +37323126006 [email protected] P, E 33. Ariprodagro LLC Suveica Ludmila Arionesti, Donduseni +37379707882 P 34. Arpan LLC Joian Vladimir Heciul Vechi, Singerei +37369123716 [email protected] P 35. Ascensiune LLC Banuh Raisa Gaspar Edinet +37360953534 [email protected] P


36. Asinaris LLC Gutul Nicolae Ricani +37369108868 - P 37. Aspidistra LLC Movileanu Alexandru Petresti, Ungheni +37369245208 - P 38. Aveticom LLC Curchi Stefan Cotiujenii Mici, Singerei +37369162982 - P 39. Avinord-Prim CAP Margineanu Vasile Naslavcea, Ocnita +37368633830 - P 40. Badrageanca CAP Rastasanu Gheorghe Badragii Noi, Edinet +37367143224 - P, GMO 41. Banari Iurie GT Banari Iurie Petrunea, Glodeni +37369306380 [email protected] P 42. Baronceanca LLC Rotari Valeriu Baroncea, Drochia +37368843433 [email protected] P 43. Basarabia CAP Calmic Serghei Harbovat, Anenii Noi +373265 72398 [email protected] P 44. Baicean Agro LLC Baiceanu Mihail Ustia, Glodeni +37369963232 - P 45. Bejan Mihai GT Bejan Mihai Costesti, Riscani +37369278695 - P 46. Belatiscom LLC Berezov Vasile Dobrogea Veche, Singerei +37369122139 - P 47. Biamus-Prim LLC Mitis Ilie Octeabrscoe, Singerei +37369128521 [email protected] P 48. Bindagra-Com LLC Darie Gheorghe Borosenii Noi, Riscani +37369169189 - P 49. Bitic-Agro LLC Gherman Ion Branzeni, Glodeni +37369370898 [email protected] P 50. Bogalecon-Moldova LLC Axentii Petru Hijdieni, Glodeni village +37369121430 [email protected] P 51. Bonagrovest LLC Grisco Ala Lipcani +37369781195 - P 52. Bonistica LLC Loboico Mihail Balcauti, Briceni +37369120141 - P 53. Borivas Agro LLC Bujac Boris Glinjeni, Falesti +37379591851 - P 54. Borodachi Lilian GT Borodachi Lilian Hlina, Briceni +37368110948 - P 55. Bosvelia LLC Boubatran Veronica Glodeni +37369338919 [email protected] P 56. Boțoroaga Tatiana GT Botoroaga T atiana Alexandreni, Edinet +37369581508 - P 57. Broters LLC Anghel Lion Chisinau +37369106621 [email protected] P 58. Bucovăț LLC Mirzac Valerian Chisinau +373222019 [email protected] P 59. Bucoovineanca LLC Bizdiga Vasile Trinca, Edinet +37369515515 - P 60. Bucuria LTD LLC FPC Mazuureac Marian Cernoleuca, Donduseni +37369105104 - P 61. Buntovit-Agro LLC Ciubuc Mihail Cubolta, Singerei +37379448619 - P 62. Bursemcom LLC Burlacu Ala Zgurita, Drochia +373252 25757 [email protected] P 63. Buruian Daniil GT Buruian Daniil Hadarauti, Ocnita +37367193763 - P 64. C.A.I. Cojocaru GT Cojocaru Alexandru Mereseni, Hincesti +37379227398 - P 65. Calea Zaicanilor Baclinca Victor Zaicani, Riscani +37369119465 - P 66. Camencuța Agro LLC Prisacaru Corneliu Sturzeni, Riscani +3736930315 - P 67. Dumitru GT Capmoale Victor Lipnic, Ocnita +37379164724 - P 68. Cariopsa LLC Bobutac Daniel Lipcani +37369365906 - P 69. Casmerlin LLC Marusceac Ivan Nihoreni, Riscani 79506592 - P 70. Ceban Petru GT Ceban Petru Echimauti, Rezina +37368081448 - P 71. Ceneva-Agro LLC SC Crohmaliuc Valerii Costesti city, Riscani +37369873714 - P 72. Cimcazac LLC Cazac Violeta Cimiseni, Criuleni +373248 312 - P 73. Cîmpia Peliniței CP Turcanu Gheorghe Pelinia, Drochia +37369095145 - P 74. Climăuțanu-Agro LLC Chiriac Alexei Climauti, Donduseni +37369201426 [email protected] P 75. Cobgiacasor LLC Eremita Vladimir Volovita, Soroca +37369106898 - P, GMO


76. Nicolae GT Cojocaru Nicolae Soldanesti +37369181746 - P 77. Colegiul Agricol din Taul Nichitovici Marian Taul, Donduseni +373251 61247 [email protected] P 78. Colicautanul LLC Lupu Mihai Colicauti, Briceni , +37369202907 [email protected] P 79. Consatenii CAP Gligor Ion Falestii Noi, Falesti +37369158407 - P 80. Coriandro-Agro LLC Vieru Ion Coscodeni, Singerei +37379579635 - P 81. Cozășteanul LLC Balan Tudor Cozesti, Telenesti +37368594717 - P 82. Cozmeanca-Prim LLC Dobindă Pavel Pruteni, Falesti +37369201226 [email protected] P 83. Crausanius LLC Gaideec Mihai Singereii Noi, Singerei +37369169109 - P 84. Crenigrad-NC LLC Cretu Nicolae Blesteni, Edinet +37369581717 - P 85. Crenigrad LLC Cretu Nicolae Edinet +37369581717 - P 86. Cubvas-Agro LLC Cubei Vasilii Donduseni +37369560166 [email protected] P 87. Cutezatorul agricol LLC Duminica Daniel Recea, Riscani +37369176850 - P 88. Dalup Agro LLC Lupusor David Cobani, Glodeni +37369012356 - P 89. Danulischii LLC Colibaba Eduard Danu, Glodeni +37324971230 [email protected] P 90. Dealul ochiulbean LLC Zbanca Victor Ochiul Alb, Drochia +37369137158 - P 91. Demivic Agro LLC Demidetchii Victor Colicauti, Briceni +37369071681 - P 92. Dimascom LLC Mazurchevici Mihail Hasanasenii Mari, Drochia +37369665907 - P 93. Disetincom LLC Gorbatii Mihail Chetrosu, Drochia +373252 54230 - P 94. Djerela-Agro LLC Rimbu Tatiana Tiplesti, Singerei +37369279646 - P 95. Draganistenii LLC Bînzari Maria Draganesti, Singerei +37369148577 - P 96. Drebozaci LLC Cojocari Vasile Drepcauti, Briceni +37369123622 - P 97. Duval LLC Duca Valeriu Criva, Briceni +37369025601 - P 98. Efelina-Agro LLC Oala Alexei Ilenuta, Falesti +37368332727 - P 99. Ervenial-Agro LLC Dandara Livia Badragii Noi, Edinet +37367193448 - P, GMO 100. Expeditia-Agro LLC Dobrani Nicolai Tiraspol city, Transnistria 533 54941 [email protected] P 101. Finat-Agro LLC Berdea Nicolae Albinetul Vechi, Falesti +37367170321 - P 102. Fortina Labis LLC Placinta Anatol Floreni, Ungheni +37369249049 [email protected] P 103. Frapex Agro LLC Rotari Nicolai Fundurii Vechi, Glodeni +37379451498 [email protected] P 104. Frutmol LLC Mititelu Ion Frasin, Donduseni +37369596086 - P 105. Gareanca-Agro LLC Cugut Valentina Falesti city, Falesti +37368208718 P, GMO 106. Geamtal LLC Todoseiciuc Nicolae Crasnoarmeiscoe, Hincesti +37379555125 - P 107. Gheocriscom LLC Frumusache C. Hasnasenii Noi, Drochia +37369267509 - P, GMO 108. Gheorghe Cojocari GT Cojcari Gheorghe Sircova, Rezina +37368874841 - P 109. Gigalboe Agro LLC Munteanu Mihail Lopatica, Cahul +37368222924 - P 110. Girlea Andrei GT Girlea Andrei Rezina +37369148537 [email protected] P 111. Gladun GT Stefirta Victor Sirauti, Briceni +37369323369 - P 112. Glia Surenilor LLC Gradinari Vasile Suri, Drochia +37379566611 - P, GMO 113. Golserv-Agro LLC Guranda Ion Glodeni +37369207257 - P 114. Gordagro-Plus CAP Gordila Tudor Corlateni, Riscani +37369023166 - P 115. Gospodarul-Rediu LLC Chictenco Nicolae Rediul de sus, Falesti +3736753015 [email protected] P


116. Gribova-Agro CAP Cebotari Victor Gribova, Drochia +37379631111 - P, GMO 117. Grildas-Agro LLC Lupascu Grigore Mindic, Drochia +37360199445 - P 118. Grimion-Agrocom LLC Ursu Grigore Costesti, Ialoveni +37369162290 - P 119. Gruprijor-Agro LLC Jornea Ion Chetris, Falesti +37369553653 - P 120. Gurau Gheorghe GT Gurau Gheorghe Razeni, Ialoveni +37379472530 [email protected] P 121. Hiliutianul LLC Tcaci Igor Hiliutianul, Riscani +37369160588 P 122. Hlinagrocoop LLC Lambarschii Sergiu Hlinaia, Edinet +37360735020 - P 123. HlinAgroprodus LLC Ciumac Nicolae Hlinaia, Edinet +37368999243 - P 124. Hlineanul LLC Ungureanu Victor Hlinaia, Briceni +37369120946 - P 125. Hotin LLC Mironic Nicolae Fundurii Noi, Glodeni +373249 70665 - P 126. Husa-Rvn CI Russu Gheorghe Corjeuti, Briceni +37369121824 [email protected] P 127. Iarovizare LLC Cretu Ion Lopatnic, Edinet +37379540001 - P 128. Iasan Ion GT Iasan Ion Corjeuti, Briceni +37369445500 - P, GMO 129. Iesan Alexei GT Esanu Alexei Corjeuti, Briceni +37369036416 - P 130. Inatol-Agro LLC Tomai Olga Girbova, Ocnita +37368723154 [email protected] P 131. Infotago LLC Gheras Ana Burlanesti, Edinet +37369055663 - P 132. Interagroinvest SA Ciubuc Ion Chisinau +37369103540 [email protected] P 133. Ion Biciusca GT Biciusca Ion Gordinesti, Edinet +37324660349 - P 134. Itero-Agro CA Procopciuc Zinaida Iscalau, Falesti +37379044354 - P, GMO 135. Iurival-Agro LLC Cucu Valentin Badragii Noi, Edinet +37367143152 P, GMO 136. Ivalams-Agro LLC Ivanov Mihail Pirlita, Falesti +37379531814 - P 137. Izvorul Mariei CP Vorobiov Victor Ungheni +37369139292 - P 138. JLC Agro-Maiac LLC Manaf Ivan Rujnita, Ocnita +37369189434 [email protected] P 139. La Balanici CAP Lungu Ion Cuhnesti, Glodeni +37369888280 P 140. La Fontan CAP Fedoraș Ecaterina Balatina, Glodeni +37360201295 - P 141. LargoFar LLC Gheorghita Ana Larga, Briceni +37324751941 - P 142. Lazariuc Anatolii GT Lazariuc Anatolii Sofrincani, Edinet +37367107071 - P 143. Lemisona LLC Luchianciuc Vasilie Gordinesti, Edinet +3736912165 - P 144. Lidia Rusu GT Rusu Lidia Risipeni, Falesti +37369069385 - P 145. Liminal-Agro LLC Vatamaniuc Vasile Limbenii Noi, Glodeni +37369657082 [email protected] P 146. Livia Tatarenco GT Tatarenco Dumitru Zahorna, Soldanesti +37369139599 - P 147. Logofat-Prim LLC Cires Vasile Logofteni, Falesti +37369648927 [email protected] P 148. Manoil Victor GT Manoil Elena Ocnita +37369701401 - P 149. Marandiuc Vsilii GT Marandiuc Vasile Coada Iazului, Singerei +37369106032 - P 150. Marcant-Agro LLC Gladchi Fiodor Riscani +37325628963 - P 151. Martinovschi Liviu GT Martinovschi Liviu Ruseni, Edinet +37369638151 - P 152. Mazrus-Agro LLC Maznic Stanislav Donduseni +37369128602 - P 153. Mega D&N LLC Moga Gheorghe Chisinau +37369133997 [email protected] P, GMO 154. Mihalasanul LLC Ostavciuc Gheorghe Mihalaseni, Ocnita +37327173000 - P 155. Misspend LLC Ceban Zinaida Sudarca, Donduseni +37368277177 - P


156. Mita Igor GT Mita Igor Alexandreni, Edinet +37368197093 - P 157. Mospuragro LLC Turea Grigore Catranic, Falesti +37325952769 [email protected] P 158. Mosana CP Ponomari Nicolai Mosana, Donduseni +37369279532 - P 159. Muncel Agro LLC Stinca Vasile Corjeuti, Briceni +37369112467 - P 160. Naslavagroteh LLC Prisacaru Pavel Naslavcea, Ocnita +37367104221 - P 161. Negura Oleg GT Negura Oleg Echimauti, Rezina +37379595515 - P 162. Nesteriuc Serghei GT Nesteriuc Serghei Rediul Mare, Ocnita +37369932532 - P 163. Nistiriuc SN GT Nistiriuc Sergiu Petresti, Ungheni +37379041155 - P 164. Nurecana Agro LLC Padure Iurie Calinesti, Falesti +37369064995 - P, GMO 165. Oclanda-Agro LLC Cebotari Pavel Oclanda, Soroca +37369145384 - P 166. Oleser-Zonal LLC Chetrari Gheorghe Sloveanca, Singerei +37369110032 - P, GMO 167. Ost-Nord-Agrocom LLC Turcan Iurie Rezina city, Rezina +37360042047 [email protected] P 168. Palaiciuc Constantin GT Palaiciuc Constantin Bulaiesti, Orhei +37379579184 - P, GMO 169. Palmoc-Agro LLC Tirchi Pavel Rediul Mare, Ocnita +37379853733 [email protected] P 170. Pasagrocom LLC Panciuc Piotr Singerei +37369420054 - P 171. Pascari Nicolae GT Pascari Nicolae Cepeleuti, Edinet +37369360063 - P 172. Petreanca-Agro LLC Darii Chiril Petreni, Drochia +37369297331 - P 173. Piotr Cucer LLC Cucer Petru Mihailovca, Singerei +37326235371 - P 174. Pirjoteh Agro LLC Rusu Natalia Pirjota, Riscani +37325643238 - P 175. Plai Prutean LLC Ivanschi Constantin Gotesti, Cantemir +37379573323 - P 176. Plaiul Bîrlădean LLC Pavliuc Tatiana Birladeni, Ocnita +37369134337 [email protected] P 177. Plantagor LLC Romandas Ion Glodeni, Glodeni +37369300423 [email protected] P 178. Pohoarna-Agro LLC Strelciuc Gheorghe Pohoarna, Soldanesti +37369125194 - P 179. Popesteanca LLC Starii Andrei Popestii de Sus, Drochia +37369223754 - P 180. Primsol-Agro LLC Grosu Veaceaslav Miciurin, Drochia +37368554906 - P, GMO 181. Princiar LLC Chirilici Galina Iabloana, Glodeni +37369152536 - P, GMO 182. Printana-Agria LLC Plămădeală Petru Grinauti, Riscani +37369238543 - P 183. Prog-Agroter LLC Vrabie Iurie Valea Mare, Ungheni +37369114254 - P, GMO 184. Promartur LLC Cojocaru Ruslan Soldanest, Soldanesti +37369181746 - P 185. Protion Agro LLC Andriuta Ion Singerei +37369325677 - P 186. Protuvim Agro LLC Birsanu Mihai Singerei +37369261767 [email protected] P 187. Railean-Plus LLC Railean Victor Bardar, Ialoveni +37379552082 [email protected] P 188. Rairec-Plus LLC Rarancean Nina Sarata Veche, Falesti +37369128189 - P 189. Reforma CM LLC Ceban Marcel Terebna, Edinet +37369209447 [email protected] P 190. Regina Cîmpiilor LLC Dontu Petru Bulbocii Noi, Soroca +37369059480 - P 191. Restabilire LLC Medvetchii Leonid Marcauti, Briceni +3736978337 - P 192. Roșiori-Lux LLC Moraru Nicolae Chiscareni, Singerei +37378305080 [email protected] P 193. Rudi Valerii GT Rudi Valeriu Sestaci, Soldanesti +37367143204 - P 194. Samira-Grup LLC Gradinaru Dumitru Balti +37323143442 - P 195. Schit-Agromex LLC Sprincean Nicolae Hirtopul Mic, Criuleni +37369105356 [email protected] P


196. Scofild LLC Ptasnic Constantin Vadul-Rascov, Soldanesti +37327254223 - P 197. Scripta-Prim LLC Brig Valentina Stoicani, Soroca +37368882511 - P 198. Scumprod Agro LLC Crețu Maria Scumpia, Falesti +37369098729 - P 199. Selectagro LLC Benea Veaceslav Costesti, Riscani +37325632408 - P 200. Semedar-Agro LLC Marandiuc Vasile Coada Iazului, Singerei +37369106032 - P 201. Semincerul Unic LLC Marcu Valentin Izvoare, Singerei +37369518732 - P, GMO 202. Sergiu Purcareanu GT Purcareanu Sergiu Talmaza, Stefan Voda +37379202507 - P 203. Sifon LLC Cernei Gheorghe Stolniceni, Edinet +37369348663 - P 204. Silvita Prim LLC FAPC Dragomir Sergiu Ciuflesti, Causeni +37379312025 - P 205. Slohor-Uris LLC Uricu Sergiu Rezina +37369101553 - P 206. Smarta-AS LLC Caduc Anatolie Grimancauti, Briceni +37369109841 - P 207. Soevii-Vek-M LLC Boronciuc Dmitrii Chisinau +37360280380 [email protected] P 208. Soroagroviz LLC Ivanov Vladimir Septelici, Soroca +37369844331 - P 209. Spicul Plin LLC SC Zubic Ion Catranic, Falesti +37367265255 - P 210. Stajionagro LLC Gorea Vasile Rautel, Falesti +37369184454 - P 211. Stancauti LLC Irimciuc Alexandru Saptebani, Riscani +37369050111 [email protected] P 212. Stefagro LLC Stefarta Maia Lipcani city, Briceni +37369323369 - P 213. Talicon-Lad LLC Tatarciuc Constantin Chiurt, Edinet +37369237137 - P 214. Taniserv Agro LLC Caras Dumitru Sarata Veche, Falesti +37369932845 [email protected] P 215. Taras-Scop-Agro LLC Schitco Alexandr Natalievca, Falesti +37369155600 - P, GMO 216. Tego-Agro LLC Televca Ana Ocnita +37369154433 - P 217. Tehrubsor LLC Munteanu Ghenadie Rublenita, Soroca +37369108102 - P 218. Teos-Agro LLC Botnari Vladimir Sudarca, Donduseni +37369267180 - P 219. Tetracom-Agro LLC Novac Vladimir Ghindești, Floresti +37369168438 - P 220. Tețcaneanca LLC Grigoret Vladimir Tetcani, Briceni +37369097120 - P 221. Todini Production LLC Todini Paul Hincauti, Edinet +37379258059 - P 222. Trans Oil Refinery LLC Vaja Jashi UTA Gagauzia +373232662 [email protected] P, E 223. Trital-Nord LLC SC Cebotari Gabriel Ocnita +37369206411 [email protected] P 224. Trosar CT LLC Tabirta Constantin Zăicani, Riscani +37369106918 - P 225. Ulerus-Plus LLC Surelu Gheorghe Sofrinicani, Edinet +37369249358 - P 226. Uncermol CAP Donic Anatol Cioropcani, Ungheni +37368880678 - P 227. Vagadi LLC Belous Vasile Șoldănești +37368906747 - P, GMO 228. Valea Pirjotei LLC Tcaci Andrei Pirjota, Riscani +37325643230 - P 229. Valea Sofiei LLC Babara Ion Sofia, Drochia +37369221564 P 230. Valesir-Agro LLC Botnariuc Valeriu Sirauti, Briceni +37369352280 - P 231. Vasile Gutu GT Gutu Vasile Vasileuti, Riscani +37369269080 - P 232. Vastadum LLC Girstega Vasile Marandeni, Falesti +37369212681 P 233. Vatrom-Agro LLC Vataman Alexandru Cupcini city, Edinet +37369099946 - P 234. Viacesgrup LLC Gurau Zinaida Viisoara, Glodeni +37367265350 - P 235. Vicmar Agro LLC Dvorschi Petru Grimancauti, Briceni +37369006610 [email protected] P


236. Vigat-Agro-Plus LLC Nicu Anatolie Miciurin, Drochia +37369194051 - P 237. Vilora-VS LLC Bajureanu Victor Stolniceni, Edinet +3736871511 - P 238. Vindex-Agro LLC Ivanov Alexei Malaiesti, Orhei +37379535158 - P 239. Vis-Service CP Vasilicov Ion Viisoara, Edinet +37369016793 - P 240. Visoreanca LLC Lastoveschii Ivan Viisoara, Edinet +37369099043 - P 241. Viva Igna LLC Lesnic Tudor Grimancauti , Briceni +37369147429 [email protected] P 242. Voinescu GT Voinesco Ion Mihalaseni, Ocnita +37378004120 - P 243. Vulture LLC Malenicaia Galina Donduseni +37369065217 - P 244. WeTrade Agro LLC Tatarciuc Alexandru Tarigrad, Drochia +37379407011 [email protected] P 245. WeTrade LLC Vasilachi Iurie Chisinau +37379409864 [email protected] P 246. Zarion-Agro LLC Gheorghița Ion Berlinti, Briceni +37369117603 - P P – producer GMO – producer of GMO soybean

Annex 4 List of soy oil manufacturers

№ Company name Contact person Address Phone E-mail Note 1. ADM-Reparatie LLC Gonța Andrei Chisinau city +37369488125 [email protected] M 2. Avicola JSC Urzica Iurie Corlateni, Riscani +37325656333 [email protected] M 3. Bio Componj Raps LLC Tutuc Victor Lipcani, Briceni +37369026651 [email protected] M 4. Oil extraction plant SA Gurdura Mihail Bender 552 26795 - M 5. Floarea Soarelui JSC Ostrovetchi Stela Balti +37323180209 [email protected] M, E 6. Gurman Olioterra LLC Secrieru Liviu Chisinau +37322421567 [email protected] M, I, E 7. Moldagroproduct LLC Gladcov Ghenadie Chisinau +37368232277 [email protected] M, I, E 8. Trital-Nord LLC SC Cebotari Gabriel Ocnita +37327126066 [email protected] M M – manufacturer I – importer E – exporter

Annex 5 List of soy oil distributors

No.

Company name Contact person Address Phone E-mail Note

1. Agro-Victoria LLC Cuznetova Zinaida Chisinau +37322729711 [email protected] D 2. Alitex-Com LLC Stratulat Alexei Chisinau +37379413941 [email protected] D 3. Ceza LLC Guțu Ion Chisinau +37369175606 [email protected] D 4. Colprodcoop Singerei Zaporojan Valentin Chisinau +37326222290 - D 5. Creavita LLC Ili Vasile Chisinau +37322260095 [email protected] D


6. Customagic LLC Bruma Radu Chisinau +37369870500 [email protected] D, I 7. Felenta LLC Schirca Tudor Chisinau +37379465812 [email protected] D, I 8. Fison LLC Zavatin Dumitru Chisinau +37322432941 [email protected] D 9. Moldovanu Carolina Moldovanu Valentin Chisinau +37322312041 - D 10. Multievo LLC Grosu Veaceslav Chisinau +37322421686 [email protected] D 11. Valul Traian LLC Harti Vasile Chisinau +37322221908 [email protected] I, E 12. Volgoproduct-Bas LLC Ranțev Dumitru Balti +37369176823 [email protected] GMO 13. Viodimalex LLC SC Prisacari Alexandru Chisinau +37369109806 [email protected] D, E 14. Tovi ImExpo LLC Russu Svetlana Sofia, Drochia +37360202518 [email protected] D, E 15. Tocardo Agro LLC Dodita Ion Mihaileni, Riscani +37369265881 - D 16. Rostan LLC Stoianov Andrei Bender +37355228456 [email protected] D, E 17. Rostoc-Rustas LLC Evtodiev Iurie Fiodor Transnistria 55737470 [email protected] GMO 18. Megasurs LLC Codreanu Natalia Chisinau +37360157778 [email protected] D, E 19. Memola-Grup LLC ICS Ersoy Mehmet Chisinau +37369122627 [email protected] D, E 20. Kelley Grains Impex LLC Colesnic Marcel Chisinau +373(22)276578 [email protected] D, E 21. Ivalaga-Com LLC Agachi Ion Balti +37379454316 [email protected] D 22. Holda-Argintie SA Gherman Valerian Drochia +37378300183 [email protected] D 23. Cepoi Adrian GT Cepoi Adrian Mihaileni, Riscani +37369534577 - D 24. Helian Agro Ceriale LLC Turcanu Vasile Drochia +37360803322 [email protected] D, E 25. Gruancri-Prim LLC Grusca Iurie Balti +37369370055 - D, E GMO 26. Grap LLC Gradinari Valeriu Balti +37369128116 [email protected] D 27. Esase Grup LLC Zaharciuc Oleg Chisinau +37368777111 [email protected] D 28. Evrica CP FCP Joreanu Vasile Chisinau +373225027 [email protected] D 29. Energia LLC Babii Carolina Rautel, Falesti district +37367174777 [email protected] D, E D – distributor GMO - Distributor of GMO soybean I – importer E – exporter

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