|
|
 |
| INVESTIGATIONS |
| REPORT:
MOLDOVAN VEGETABLE SECTOR |
Note: The complete copy of the report can be purchased
at the CAMIB office
Table of contents
1. Domestic production
1.1 Open field production
1.2 Greenhouse production
1.3 Agricultural inputs: seeds, fertilizers, chemicals,
equipment
1.3.1 Seeds
1.3.2 Fertilizers
1.3.3 Chemicals
1.3.4 Equipment
2. Industrial market
2.1 Processed volumes
2.2 Major processing companies
3. Distribution and Trade
3.1 General Features and Main Indicators
3.2 Domestic prices
3.2.1 General tendencies during the last triennium
3.2.2 Seasonal Patterns
3.3 Foreign Trade
3.3.1 Export
3.3.2 Import
3.3.3 Import price versus domestic price (fresh products)
3.4 Import regulations: quotas, import duties, safety measures
3.5 Export Regime
3.6 Traders, contact information
Annexes:
1. Vegetables
varieties
2. Main processors
3. Trade data
1. Domestic production
1.1 Open field production
Based on official data, during the last decade the total area
under vegetables in Moldova decreased from 120,000 ha at the
beginning of the'90s to 111,000 ha in 1998 -including potatoes.
Output levels decreased even further, for the dramatic fall
in productivity, largely due to unavailability and/or reduced
use of agricultural inputs. Only during the last three years
a progressive increase in productivity for main vegetables was
recorded.
As shown in Table 1.1, potatoes have the largest share of total
vegetable area and production volume; indeed, potatoes alone
cover since 1996 an area larger than the one covered by all
other vegetables. The area for potatoes has grown during the
'90s from 47, 000 ha at the beginning of the decade to 62,000
ha in 1997 and 1998. Nevertheless, provisional figures for 1999
show a significant decrease (-35%) when compared with the ones
for 1998 season. It is anyway expected that in 1999 a positive
yield/ha will maintain the production level at around 360,000
t, higher then the 1990-1992 average
Table
1.1. Moldovan main vegetables products
|
Unit of measure
|
Average 1990-1992
|
1997 |
1998 |
Var % 1998/ avg 1990-1992 |
| Vegetables
- total: |
| Area |
000' ha |
116.8 |
115.5
|
110.9 |
-5.0 |
| Productivity |
t/ha |
11.1 |
6.3 |
7.9 |
-29.1 |
| Production |
000' tons |
1268.6 |
725.5 |
872.8 |
-31.2 |
|
Tomatoes |
| Area |
000' ha |
25.2 |
13,0 |
12,8 |
-49.2 |
| Productivity |
t/ha |
20.1 |
3,4 |
11,3 |
-43.8 |
| Production |
000' tons |
517.7 |
44 |
144,2 |
-72.1 |
|
Cabbage |
| Area |
000' ha |
5.2 |
8,6 |
5,1 |
-1.9 |
| Productivity |
t/ha |
59.7 |
9,4 |
12,7 |
-78.7 |
| Production |
000' tons |
75.7 |
80,9 |
64,8 |
-14.4 |
|
Cucumbers |
| Area |
000' ha |
3.4 |
7,5 |
4,3 |
26.5 |
| Productivity |
t/ha |
5.0 |
7,06 |
6,2 |
24.0 |
| Production |
000' tons |
16.8 |
53 |
26,8 |
59.5 |
|
Onions |
| Area |
000' ha |
3.7 |
8,4 |
10,3 |
178.4 |
| Productivity |
t/ha |
9.0 |
6,2 |
7,9 |
-12.2 |
| Production |
000' tons |
33.5 |
51,8 |
81,8 |
144.2 |
|
Green peas |
| Area |
000' ha |
7.2 |
2,6 |
2,4 |
-66.7 |
| Productivity |
t/ha |
4.6 |
2,8 |
2,2 |
-52.2 |
| Production |
000' tons |
32.9 |
7,26 |
5,3 |
-83.9 |
|
Potatoes |
| Area |
000' ha |
47.1 |
61,9 |
61,9 |
31.4 |
| Productivity |
t/ha |
6.4 |
6.3 |
6.0 |
-6.1 |
| Production |
000' tons |
298.8 |
391,2 |
371,9 |
24.5 |
Source: Official Moldovan Data. Tomatoes have the second largest
share of total vegetable production volumes (16% in 1998), followed
by cabbage, onion and cucumbers (see Annex 1 for a list with
main vegetable varieties produced in the open field in Moldova).
Tomatoes area and production were in '98 far below the levels
registered at the beginning of the decade (-49% and -72% respectively).
A significant increase in the area under tomatoes it is anyway
estimated for 1999. Although vegetables are grown all around
Moldova, main production areas are located near the two
largest Moldovan rivers: the Prut -which signs the country's
Western border with Romania, and the Nistru, which flows in
the East.
With reference to vegetables (except for potatoes), the main
production area is the Aneni Noi raion - South East from Chisinau,
near the Nistru river. From this raion comes 20-25% of total
national production - depending on the year, and up to 30% of
the tomatoes one.
Other significant production areas are located in the South-East
of the country((Stefan Voda raion) and alongside the South West
border (Cantemir and Cahul raions). In the country's Northern
region, main vegetables' areas are Edinet and Riscani raions,
both close to the Prut river.
As for potatoes, main production areas are within these regions:
Stefan Voda (13-16% of total output); Briceni (North West of
the country; 12-14%); and Criuleni (North from Chisinau, in
the central part of the country: 8-12%). From Northern Moldova
comes almost half of the national output: apart from Briceni,
other significant production regions are located in the Ocnita,
Riscani, and Edinet raions. |
1.2
Greenhouse production
Based on official sources, in 1998, over a total of 5 large
greenhouses operating in Moldova, only 3 (located mainly in
the central part of the country) were producing vegetables.
The total area they covered was 45,8 ha (see Tab 1.2). Legal
status of these three units is not certain yet, since the privatisation
process aimed to reorganise formerly public properties, is still
under implementation.
Besides these three enterprises, small size farmers are becoming
more and more involved in the production of vegetables through
greenhouses. The Farmer Association AGT Tiglan SA -created in
1998 in the Edinet region (northern Moldova) with the support
of the Dutch Bilateral technical co-operation, is one of the
most significant experience in greenhouse operation implemented
by the private sector in Moldova.
Total 1988 vegetables greenhouse production -including the one
from the private sector, was 30,000 t, or about 6% of the overall
vegetable production in Moldova. Main vegetables produced in
greenhouses are: tomatoes, cucumbers, cabbage and mild peppers.
In most cases greenhouses are used for planting seeds in advance
with respect to the open field season; thereafter young plants
are transplanted in the field, as to reach maturity and to be
sold at a better market price as early varieties (see Annex
1 for a list with main vegetable varieties produced in greenhouses
in Moldova).
Table 1.2 Large Greenhouses producing vegetables in Moldova.
| Company name |
Tce=Arotal area, ha (1998) |
Address |
Telefon/fax/email |
main production |
| Chisinau |
14.3 |
N/A |
N/A |
Tomatoes, cucumber, cabbage |
| "Serele Moldovei" |
30.0 |
Anenii region, Speia village |
(237)265 22764 |
Tomatoes, cucumber |
| Cahul |
1.5 |
N/A |
N/A |
Tomatoes, mild pepper |
| "AGT Tiglan SA" |
70 open field (0.2 ha green houses) |
Edinet region. Carjenti village, str.
Eminescu |
(247) 37377 (2) 749 723 antonuds@agripl.mldnet.com |
Gherin, tomatoes, cabbage, potatoes,
mild pepper, egg plant |
Source: Ministry of Agriculture of Moldova, CAMIB. 1.3 Agricultural
inputs: seeds, fertilizers, chemicals, equipment
1.3.1 Seeds
According to Moldovan law nr.62-64, "Licensing some specific
activities", published on the “Monitorul Oficial” on June 17th
1999, vegetable seed production and commercialization are activities
controlled directly by the Ministry of Agriculture and Food
Industry (MoAFI), which releases licenses to this purpose. Additionally,
seeds and seedling materials have to be certified by the Seed
Inspection Department of the MoAFI before being put on sale.
Table 1.3.1 hereafter provides a global picture of the supply/demand
status for main vegetable seeds. Figures in the table are based
on official data provided to MoAFI by agricultural companies
and farmers. It is nevertheless important to stress that these
data are only rough estimates, since in nowadays Moldova many
small producers fully escape to institutional control and since
large amounts of seed and seedling material are sold on the
black market.
Deficits of potatoes seed is an usual feature in Moldova. This
makes Belorussia, Russia and Ukraina to be the main suppliers
of Moldovan potatoes growers.
Table 1.3.1:
Balance sheet for main seeds, forecast for 1999
| Crops |
Area planned for seeding, (000 ha) |
Seeds Requirement (tons) |
Existing Seeds Stock (tons) |
Internal production - (tons) |
Surplus or Deficit (tons) |
| Tomatoes |
25,0 |
27,5 |
0,2 |
35,7 |
8,4 |
| Cucumbers |
3,5 |
19,3 |
8,4 |
3,2 |
-7,7 |
| Cabbage |
4,7 |
2,6 |
1,0 |
2,0 |
-0,4 |
| Onion |
4,0 |
44,0 |
3,2 |
11,2 |
-29,6 |
| Green peas |
4,0 |
1320,0 |
98,0 |
585,0 |
-637,0 |
| Potatoes |
40,0 |
30000,0 |
0,0 |
0,0 |
-30000,0 |
| Carrot |
3,0 |
19,8 |
2,8 |
8,3 |
-8,7 |
| Aubergine |
2,2 |
2,2 |
1,8 |
0,5 |
0,1 |
| Red beet |
1,5 |
23,0 |
0,2 |
12,0 |
-10,8 |
| Melon |
1,5 |
4,9 |
0,0 |
3,5 |
-1,4 |
| Water-melon |
3,7 |
16,0 |
0,5 |
1,0 |
-14,5 |
| Mild pepper |
3,5 |
5,7 |
0,1 |
4,7 |
-0,9 |
| Squash |
1,6 |
8,8 |
1,6 |
4,2 |
-3,0 |
| Total |
98,2 |
31493,8 |
117.8 |
671,3 |
-30703,9 |
Table 1.3.1 below provides the list of vegetable seeds Moldovan
main producers. These companies act also as importers of vegetable
seeds. Apart from them, many small enterprises import small
seeds volumes.
Table 1.3.2: Main vegetables seeds
producers in Moldova.
| Company |
Address |
Tel/Fax |
| JSC "Seminţe" Chisinau |
3, Sfintul Gheorghe str. Chisinau city. |
Tel:(2372)541069; 541081; Fax:(2372)227436 |
| JSC "Seminte" Balti |
Balti city |
Tel:(237) 231 70031 |
| JSC "Seminte" Ciadir Lunga |
Iurii Gagarin str., Ciadir Lunga city. |
Tel:(237) 261 22443 |
| Vegetable Seeds Institute from Tiraspol |
Tiraspol city |
Tel:(237) 233 33160; 22806 |
| JSC "UNICSEM" |
3, Sfintul Gheorghe str., Chisinau |
Tel:(2372) 549720 |
| ASP "Porumbeni" |
Pascani village, Criuleni region |
Tel:(2372)245574 |
| Enterprise for corn seeds treatment from
Drochia |
96, Gheirghe Voda str., Drochia city |
Tel:(237) 252 22456; 24249 |
1.3.2 Fertilizers During the last 10/12 years the use of fertilizers
in Moldova decreased considerably due to lack of cash among
producers (see table 1.4). In 1986, 5,6 tons per hectar of fertilizers
were used. During the transition period from planned to free
market economy, this figure dropped to 0,1 tons per hectare.
According to MoAFI statistics, in Moldova there is an overall
need of around 40,000 tons of “active principles”. Moldova is
a net importer of fertilizers, made exception for the humus
that is locally produced and is still easily available to a
large number of farmers. Imports of fertilizers decreased from
45,300 tons in 1991 to 10-13,000 tons of “active principles”
per year in 1995 and 1996. A significant growth in fertilizer
imports was registered in 1998, when total import reached 20,000
thousands tons of “active principles”. Table 1.4: Quantity of
fertilizers used in vegetables production
(000 tons of “active principles”)
| Year |
1985 |
1986 |
1987 |
1988 |
1991 |
1992 |
1993 |
1994 |
1995 |
1996 |
1997 |
1998 |
| Quantity |
21,2 |
20,3 |
19,5 |
16,3 |
9,4 |
7,9 |
4,9 |
7,8 |
0,5 |
0,4 |
0,4 |
0,6 |
| Average ton/ha |
5,5 |
5,6 |
5,1 |
4,8 |
3,6 |
3,4 |
2,4 |
1,1 |
1,2 |
0,6 |
0,2 |
0,1 |
1.3.3 Chemicals
Production and commercialization of chemicals are licensed by
MoAFI. Around 30 companies are currently selling chemicals,
thus fully covering existing demand. The range of chemicals
sold on domestic market is a quite wide one.
As for fertilizers, also use of chemicals in Moldova is very
low, as Table 1.5 hereafter shows. Starting from 1986 and untill
1997, total use of chemicals dropped dramatically from 42,200
to 4,000 tons of “active principles” and it is currently stable
at this latter level.
Usually farmers treat plants only in case of emergency situations
or against the most dangerous deaseses and pests.
Table 1.5: Total use of chemicals in Moldova (000 tons
of “active principles”)
| Chemicals classification |
1986 |
1990 |
1994 |
1995 |
1996 |
1997 |
| Insecticides and acaricides |
11,3 |
4,6 |
0,9 |
0,64 |
0,6 |
0,51 |
| Fungisides |
19,60 |
10,07 |
3,60 |
2,80 |
2,50 |
2,70 |
| Herbicides |
5,10 |
2,50 |
0,70 |
0,39 |
0,21 |
0,18 |
| Chemicals for seeds treatment |
0,40 |
0,03 |
0,008 |
0,002 |
0,002 |
0,005 |
| Biological products |
0,30 |
0,58 |
0,050 |
0,026 |
0,015 |
0,019 |
| Chemicals for defoliation and dessication |
0,10 |
0,07 |
0,08 |
0,08 |
0,08 |
0,07 |
| Total |
42,20 |
21,40 |
6,50 |
4,80 |
4,00 |
4,10 |
1.3.4 Equipment
Due to the slow path of reforms within the agricultural
sector and other economical/financial factors, the overall size
of equipment park in Moldova considerably decreased during the
90's. For instance, in 1992 agricultural production units owned
54,000 tractors, against 35,700 registered in 1999. 76% of still
in use tractors are considered to be technically obsolete.
During the last 3 years Moldovan producers purchased only 1,209
new tractors, against an estimated yearly need (for renewal
purposes) of about 4500-5000 units. This picture does apply
to all kinds of agricultural equipment. Due to the reduced amount
of available equipment, many soil preparation practices are
performed manually, thus leaving to machines only the major
ones.
Tab.1.6 Tractors and agricultural machinery park in Moldova
(1991-1998)
| Equipment |
1991 |
1992 |
1993 |
1994 |
1995 |
1996 |
1997 |
1998 |
| Tractors |
55000 |
54300 |
52300 |
51400 |
49300 |
46200 |
37200 |
35400 |
| Bought in that year |
4138 |
540 |
320 |
280 |
150 |
120 |
576 |
427 |
| Plugs |
18772 |
18226 |
17692 |
17010 |
16360 |
15731 |
15361 |
14624 |
| Bought in that year |
375 |
64 |
N/A |
N/A |
N/A |
120 |
720 |
283 |
| Cultivators |
23100 |
22700 |
21200 |
19300 |
18200 |
18100 |
17770 |
15970 |
| Bought in that year |
2325 |
1210 |
525 |
338 |
360 |
210 |
477 |
226 |
| Sowing-machine |
12836 |
12400 |
12271 |
11947 |
11720 |
11550 |
11235 |
11158 |
| Bought in that year |
727 |
305 |
147 |
130 |
105 |
450 |
387 |
138 |
| Sprayers |
12394 |
11874 |
10906 |
10120 |
9450 |
8400 |
7700 |
7400 |
| Bought in that year |
485 |
123 |
N/A |
N/A |
N/A |
N/A |
200 |
150 |
| Sprinkling machine |
5240 |
4940 |
4740 |
4548 |
4376 |
4152 |
3849 |
3679 |
| Bought in that year |
1064 |
N/A |
N/A |
N/A |
N/A |
N/A |
30 |
16 |
2. Industrial market
2.1 Processed volumes
The increase in vegetable production in 1998 had a
positive impact on the quantities of vegetables processed by
the industry (see table 2.1 below). Traditionally tomatoes,
cucumbers, and mild peppers are the main vegetables processed.
In 1998, almost 78,000 t of vegetables were processed. The strong
increase in processing during 1997 season (+28%) was mainly
due to tomatoes. Processed '98 tomatoes volumes recovered after
the fall in local production registered in 1997. In the short
run, the processed market for vegetables is forecasted to decrease
as a result of:
increased deliveries to the fresh market segment;
high prices for on raw materials delivered to processors;
and
lack of cash money at cannery level to pay for the raw materials
purchased.
Table 2.1 Total volumes of processed vegetables (tons).
| |
1997 |
1998 |
1998/1997,% |
| Total |
18804,6 |
71760,9 |
281.6 |
| Tomatoes |
6406 |
63280 |
887.8 |
| Cucumbers |
1409,3 |
3091 |
119.3 |
| Vegetable marrow |
3223,3 |
2825,7 |
-12.3 |
| Green peas |
4824 |
1629,2 |
-66.2 |
| Cabbage |
1279,5 |
180 |
-85.9 |
| Carrot |
1218,9 |
230 |
>-81.1 |
| Mild peppers |
151 |
500 |
231.1 |
| Other vegetables |
292,6 |
25 |
>-91.5 |
Source: Ministry of Agriculture and Food Industry of Moldova.
Table 2.2 Estimates of amounts to be processed during
1999, tons.
| |
1999* |
| Processing needs |
116 766 |
| Quantities contracted by canneries by
16.04.99 |
64 462 |
%
|
55,2 |
* -forecasts.
Source: Ministry of Agriculture and Food Industry of Moldova.
Processing companies base their purchasing prices on wholesale
market prices. Table 2.3 below shows 1998 selling prices of
big production units that wholesaled their harvests mainly in
Chishinau and Baltsi. Due to bad weather conditions during 1999
spring and early summer, raw materials prices to be paid by
processors during this 1999 season are expected to rise, thus
following the more general inflationary trend which took place
in the Moldovan economy after August 1998.
Table 2.3 Purchasing prices for 1998 (Lei/kg)
| |
1998 |
| Tomatoes |
0,4 |
| Cucumbers |
1,3 |
| Cabbage |
0,4 |
| Carrot |
0,4 |
| Aubergine |
2,2 |
| Vegetable marrow |
1,2 |
| Mild pepper |
2,6 |
Source: Department of Statistics of Moldova and CAMIB estimates.
2.2 Major processing companies
There are 16 large fruit and vegetable processing plants and
several small-and medium-scale enterprises currently operating
in Moldova. This amount is considered to be excessive taken
into consideration current agricultural output volumes. Almost
all plants had indeed problems to find adequate supplies of
raw materials. Indeed, receiving the right quantity of raw materials
on a regular basis is becoming increasingly difficult for Moldovan
processors, despite that all main plants are located within
major production areas.
Large-scale Moldovan vegetable processors can be divided into
two main groups. The first one accounts for the majority of
processing facilities and includes large plants specialised
in vegetables processing and usually located in the main vegetable
production areas but with very old, low performing processing
equipment -with a Russian, Bulgarian, Yugoslavian origin.
The second group includes small processing lines for canned
vegetables products within plants which process other raw materials
(as milk or fruits). Also in this case used processing facilities
are old, with the exception of some new equipment (mainly pasteurise
and twist-off cap equipment).
It has been estimated that this group accounts for 20-30% of
total Moldovan processed vegetables volume. In Moldova, a country
with a clear export oriented production, the achievement of
adequate, acceptable standards is hindered by a conspicuous
lack of quality management ability at enterprise level and of
food quality inspection at national level. The TACIS/FD MOL
9501 project detected these deficiencies and started providing
technical assistance (TA) in this area -including, on HACCP.
Several initiatives of this nature were implemented also by
other TA agencies operating in Moldova. The list of main vegetables
processors in Moldova is reported in Annex 2.
3. Distribution and Trade
3.1 General Features and Main Indicators
A limited amount of large producing enterprises -mainly created
following reorganization of previous Kolkhozes into private
joint stock companies, controls around 30% of the overall country's
production of vegetables -including potatoes. As shown in the
chart below, in 1997 these enterprises used 38% of their production
volumes for paying rents and workers' salaries; the remaining
62% was sold to processors (19%); was used in barter deals (8%)
or sold through retail markets or retail outlets (34%).
The remaining 70% of Moldavian production is scattered among
a large number of small private producers, whose levels of vegetables
harvest self-consumption are very high. They mostly sell their
products directly to final consumers -through small stands inside
open air markets. Sales to processors are usually done on the
basis of contracts.
In general, Moldavian vegetables market is still highly disorganized.
Although in the main urban centers there are infrastructures
aimed to support wholesaling activity, agricultural supply is
still atomized, and harvest marketing remains a complex problem
for the majority of Moldavian producers.
The same holds true for the generality of agricultural products.
The creation of private farmer organizations -such as cooperatives,
associations, and marketing groups, is considered as a key factor
for the development and modernization of Moldavian agriculture.
Total vegetable availability is mainly related to the level
of internal production, since volumes of external trade in this
agricultural sector is rather limited. Indeed, in 1998, import
propensity -which measures the part of domestic demand covered
with import, was only 2.2%, while export propensity (export/internal
production, in %) was 3.5%.
In 1998, domestic (apparent) consumption has been around 860.000
tons, which implies a per capita consumption level of almost
200 kg/year -one of the highest in the world, and a degree of
self-sufficiency higher than 100%.
3.2 Domestic prices
3.2.1 General tendencies during the last triennium<
As it happens with most -though not all, agricultural products,
vegetables prices in Moldova are fully determined by market
forces. During harvest time, volumes of domestic supply set
levels of market prices, while during winter time prices are
set on the basis of the value of imports.
Due to the lack of cooling facilities in the country, vegetables
are usually not kept under refrigeration. This severely limits
their market life. The small amounts that can benefit from refrigeration
are sold through retail markets during winter at high prices,
although very often their quality is low.
A regular monitoring of retail and wholesale prices on main
Moldovan markets has been carried out by CAMIB , since February
1997. CAMIB has been using a price collection network monitoring
every week prices for more than 60 products. Based on CAMIB
figures -that refer to 1998 average domestic prices, the following
can be stressed:
a) 1998 retail prices decreased for tomatoes (-14%), cabbage
(-25%) and carrots (- 47%). Favourable weather conditions in
1998 allowed, in fact, high levels of domestic supply; decrease
in the import levels and low prices for imported products during
the out of season period;
b) increase in the retail price levels for other products, such
as: cucumbers (+19%), potatoes (+11%) and onions (+7%). This
was due to reduced levels of domestic supply, good market demand
and high prices for imported products.
Starting from October 1998 and right through the first 1999
semester, vegetables prices followed a generalised increasing
tendency, due to the strong depreciation of the national currency
(LEU) and the following related inflation process that earmarked
this period.
Apart from the effect played by increasing inputs and energy
costs, also product specific factors had an impact on vegetables
price levels. For instance, comparatively low prices for tomatoes,
cabbage and carrots in 1998 brought in 1999 a reduction in levels
of domestic production, that caused a considerable price increase
of both domestic and imported productions.
A comparison of price averages for the first 5 months of 1999
vs. the same '98 period, shows a significant price growth for
these products, with a peak for carrots (+151%) and cabbages
(+95%). To the contrary, domestic over supply caused a decrease
of onion price (-26%).
3.2.2 Seasonal Patterns
Fresh vegetables prices show clear seasonal patterns -see Graphs
1,2,3,4,5,6 hereafter. During 1997 and 1998, seasonal price
fluctuations for tomatoes and cucumbers followed almost alike
patterns. Very high prices in wintertime -due to decreasing
levels of local production supply also for lack of storage facilities,
high production costs for greenhouse production and increasing
incidence of import over market supply, and low prices during
harvest season.
Similar annual trends follow also cabbage, onion, potatoes and
carrot prices. Although their prices are higher in winter time
-but lower than for tomatoes and cucumbers, since their storage
is easier and hence cheaper, they raise even more during pre-harvest
time, when the old supply is considerably reduced and early
varieties enter the market. For all vegetables, price fluctuations
during the first five months of 1999 confirmed previous seasonal
patterns.
3.3 Foreign Trade
As mentioned above, foreign trade is up to now not very relevant
in this agri-food sector: only a small proportion of total internal
production is exported abroad and foreign products cover a fraction
of domestic demand.
Moldova is a net exporter of vegetable products: based on official
statistics, in 1998 the positive trade balance amounted to almost
15.9 millions USD -5.1 millions or 48% higher than in the year
before, due to the combined effect of increased (+18%) exports,
and declining (-15%) imports.
Moldova positive trade situation is largely due to the segment
of processed products. In 1998, in fact, Moldova was a net importer
of fresh vegetable products, with a trade deficit of 611,000
USD. In 1997 the commercial deficit was even higher: more than
1,3 millions USD. It is likely that the country could show a
positive balance also in the fresh segment, if last year tendencies
-import decline and export growth, will be confirmed even during
1999.
Based on official figures, import and export average prices
are both very low, with price (0.26 USD/kg in 1998) for imported
vegetables lower than the one for exported products (0.68 USD/kg).
This because export include an higher proportion of processed
goods when compared to imported ones.
Anyway, caution should be used in interpreting trade figures
-particularly for overall values and unit average prices. Indeed,
information available from sources different from official ones,
shows that the value of products -particularly for imported
ones, is often underestimated by customs statistics.
3.3.1 Export
Moldova exported a total of 30.600 tons of vegetables in 1998
- +25% on 1997 figures (see Annex 3 for data on trade).
Foreign sale value was almost 112 millions Lei (+38% on 1997),
or 20.8 million USD (at an average exchange rate of 5.38 Lei/USD).
In value terms, this sector accounts for 6% of the total amount
exported in 1998 under: “Food, Beverages and Tobacco”. Although
still relatively small, the vegetables' share is increasing.
This sector is, anyway, one of the few which continued
to show positive export performances during recent years. Indeed,
overall exports under: “Food, Beverages and Tobacco” declined
from 479 millions USD in 1997 to 351 millions USD in 1998 (-27%).
This negative pattern is also confirmed -by preliminary figures,
for 1999.
Fresh vegetables
showed the best commercial results in 1998. Indeed, with a 49%
increase over previous year, they accounted for a 36% of 1998
total traded volumes and for a 15% of their values.
The positive performance was mainly due to dry vegetables, vegetables
in pod, and tomatoes. With onions, cucumbers and peppers, these
products covered the bulk of Moldavian foreign sales in 1998.
Cabbages and carrots export volumes declined by 65%.
Belarus was by far and large the most important buyer of Moldavian
fresh vegetables. Its imports equaled 64% of total volumes and
49% of total values of vegetables exports from Moldova in 1998.
Other relevant trade partners were Egypt, Turkey, Romania and
Russia.
Export of processed product, amounted to 19,700 tons
(+15% over '97 figure), for a value of 95 millions Lei (+35%).
Regrettably, available official statistics for processed products
are not enough detailed to allow throughout analyses.
In 1998, the set of processed product mainly exported -with
a 57% share on total export, both in volume and value, was the
one under custom code 2005 ("Other vegetable preparations, not
frozen"). It was followed by "Other vegetables preparation in
vinegar" (code number 2001), and by "Tomatoes in vinegar" (code
number 2002). Among these products, the ones under code 2001
were the only ones showing a decrease in export volumes (-18%
on 1997 data). Ex-Soviet countries are by far and large the
main market outlets for Moldavian processed vegetables. In particular,
Russia imported a share equals to 82% of the overall export
values during 1998, while Belarus share equaled 10%.
3.3.2 Import Overall vegetables import volume dropped to 19,200
tons in 1998 (-39%), mainly due to a clear decrease in the demand
for foreign fresh products, which make up the bulk of total
vegetables import (94% in volume terms in 1998). Fresh vegetables
import share is lower in value terms (75% in 1998) due to the
higher prices paid for imported processed products.
With reference to fresh items, import is concentrated
during the winter season and it is mainly aimed to meet domestic
demand at a time when availability of domestic products is scarce.
Furthermore, and the all year round, some import takes place
for meeting the demand of vegetables species or varieties not
grown in Moldova. In both cases, these products are marketed
through outlets targeting consumers with high purchasing power.
No raw material for processing purposes is imported.
Potatoes make up the bulk of Moldavian imports: 94% in volume
and 86% in value during 1998. In 1998, Belarus became Moldavian
leading potatoes supplier (78% over total import value), taking
advantage of the sharp decline in imports from Romania due to
shortages in domestic production of this country. Romania was
the main supplier in 1997, with a market share of 37% (in value
terms). Other potatoes suppliers are Poland, Hungary and Russia,
and -to a lesser extent, Germany, Holland and Lithuania.
Dry vegetables and onions are the second and third imported
item, while for all the other fresh vegetables only very limited
volumes are imported.
Also import of processed products declined in 1998, although
at a slower rate (-18% in volume and -13% in value terms when
expressed in USD).
"Other vegetables preparations, not frozen"
(HD code 2005), and tomatoes in vinegar (HD code 2002), make
up altogether most of trade flows (1998: 83% in volume, 87%
in value).
Many are the countries from where vegetables are imported. In
terms of value, in 1998 Germany and Spain were the leading trade
partners, followed by Romania, Luxembourg, Russia, USA, Italy
and Belarus.
3.3.3 Import price versus domestic price (fresh products)
Import prices are generally higher than domestic ones. The picture
is anyway quite diversified, depending on the product, the country
of origin and the period of the year taken into
consideration.
As reported in Table 3.3, section A), 1998 average price of
imported products -including customs duties, VAT, and commercial
margins, is 1.5 times higher than the wholesale price for the
domestic production. Among products with a domestic origin,
only tomatoes and onions show a price higher than imported products:
this could be in theory explained by the better quality of products
originating in Moldova, although an underestimation of the imported
values declared on official documentation surely affects truthfulness
of these data.
If June 1999 retail prices for imported and domestically produced
products are compared, imported products prices are always at
least twice higher than those for local products - as shown
in Table 3.3, section B, with an average ratio of 2.6.
Since imported product prices reported in table 3.3/B below
have been collected in one of the most expensive Kishinev outlet
-where mainly fresh vegetables from Italy are sold, the situation
therein described relates to the widest differential in prices
to be found within Moldova.
3.4 Import regulations: quotas, import duties, safety measures
Quotas
The vegetables import regime is regulated in Moldova through:
“The State Budget Law”; “The Customs Code” and several other
laws and Ministerial decrees. According to existing legislation,
there is no quota regime on imports of fresh vegetables into
the Republic of Moldova, regardless their country of origin.
Import duties
Since Moldova is a large producer of fresh vegetables, the Government
and the legislative body (the Parliament) have worked out different
measures to protect domestic producers. One of them is the custom
tariffs regime for fresh vegetables import. The custom tariffs
regime is set by the Parliament every year through approval
of the “State Budget Law”. According to “1999 State Budget Law”
(Monitorul Oficial, December 31, 1998, nr. 119-120), a 15% custom
duty is applied on the value of fresh vegetables internationally
recorded under 07 code -vegetables, root plants and food tuber.
A 5% custom duty is applied to peas seeds, which makes the only
exception. According with this Law, import of vegetables from
CIS and Romania is not subject to customs tariffs, since inter-state
bilateral free trade agreements rule Moldavian trade with these
countries.
Moreover, vegetables import into Moldova are charged a 20% VAT
fee regardless its origin. The fee is calculated on the value
declared on import documentation. An additional 0.25% tax is
charged on value of imports to cover customs costs.
Safety measures Two laws are in place to look after consumer
‘s health and to regulate trade of fresh vegetables in Moldova:
law n.10 “On consumer protection” (Monitorul Oficial, May 25,
1993) and law n.11-12 “Concerning produce standardisation” (Monitorul
Oficial, February 22, 1996). They are sided by a series of other
decrees/decisions, such as:
Republic of Moldova Government Decision N. 364, April 28, 1998:
“Measures to safeguard consumers”;
“Sanitary laws on raw
materials and foods imported into Moldova” (Monitorul Oficial,
August 30, 1996, n. 57); and
“Medical-biological requirements
and sanitary norms for raw materials and foods” N.5061- 89.
According to existing laws and regulations, all products imported
into Moldova should carry documentation certifying their quality
and safety. Required documents for vegetables import are:
Certificate of quality from producers (not compulsory
for vegetables);
Certificate of origin;
Certificate of conformity -declaration from the supplier,
which should go along with produce analysis certificates.
Products should comply with quality and safety measures in force
within Moldova.
As for phytosanitary safety measures, Moldovan Law n.38-39 on
“Phytosanitary quarantine” -published on Monitorul Oficial of
June 14, 1995, quarantine measures apply to:
Seeds and planting material to be used for agriculture, forestry
and decorative purposes; plants and their parts (copses, bulbs,
tubers, fruit); and any other vegetal products that can be
subject to this measure;
Any mushroom, bacteria and virus cultures, and nematode, acari
and insect lot imported for research or business purposes;
Soil samples, agricultural machinery and equipment, transport
equipment, all kinds of packaging material, industrial goods
and vegetal materials that risk to be contaminated; and
Outlets that buy, store, process and sell vegetal products;
agricultural and forest soil …
For all products covered by the phytosanitary legislation, the
importer must have phytosanitary certification from the country
the products are imported from. As for vegetables import, phytosanitary
certificates must certify that transport means used for carrying
imported goods; the packaging materials used and the same imported
vegetables are free from pests subject to quarantine regulation.>
3.5 Export Regime Quotas According to current
legislation, there are not quotas regulating vegetables export
from Moldova. Export Duties
Vegetables export from Moldova is regulated by the same laws
that rule over import. There are not custom duties on export
of vegetables from Moldova except when this is done by a phisical
person (and not by a giuridical entity). Nevertheless, phisical
persons have the right to export up to 50 kg of vegetables without
any customs duty being applied. Amount exceeding 50 kg are charged
with a custom duty equal to 10% of the product value plus an
additional 0.25 % for custom document filling.
When vegetables are exported by a juridical person, only a 0.25%
fee is charged.
Exporters of Moldovan vegetables -including all vegetables produced
in Moldova or CSI country, benefit of a preferential regime
when exporting these goods into Romania and CIS countries. According
to interstate agreements between Moldova and CIS countries and
Romania, all goods produced in Moldova are free from customs
duties when exported to CIS countries, whilst a 4% is charged
when they are exported to Romania.
Export procedures In order to undertake an export
operation from Moldova, the juridical person needs the following
documents:
Contract between supplier
and buyer;
Bank documents:
Prove of bank account possession (only for residents);
Declaration of currency repatriation (only for residents);
Company' s documents:
Registration Certificate;
Statistical Code Certificate;
Fiscal Code Certificate;
Transport documentation:
Transit authorization;
Invoice.
Standardization documents:
Standard form for product samples analysis;
Certificate of conformity;
Phitosanitary certificate.
Produce origin certificate
In Moldova, export operations are under direct control of the
Customs Department and of the National Bank of Moldova. According
to law nr.28-29 -"Regulating the repatriation of money obtained
from export of goods and services from Moldova" (published on
Monitorul Oficial dated April 2th, 1998) all juridical persons
registered in Moldova and dealing with export operations, must
repatriate all cash generated within 180 days since the export
operation took place. In case of non-compliance with what foreseen
by the law, the National Bank has the right to punish exporters
by charging them with an amount equals to the one not yet repatriated.
3.6 Traders, contact information There are hundreds of companies
dealing with import or export of vegetables. Since import/export
of vegetables is not their main activity, it is usually pursued
on a sporadic and seasonal basis. Largest exporters/importers
from Moldova during the first six months of 1999, are shown
in table 5.6.1 and table 5.6.2 below.
Table 3.6.1: Moldova: - Main vegetables exporters (first semester
1999).
| N. |
Fiscal Cod |
Company name |
Address |
Telphone |
Value (thous.lei) |
Share of total export
(%) |
| 1 |
340416 |
JSC "Prometeu" |
7 Uzinelor str. Chisinau |
tel:442323 |
3948,1 |
18,6 |
| 2 |
1512818 |
LTD "MonBlanc" |
Tvardita vilage, Taraclia district |
(274)25911; 24833 |
1914,5 |
9,0 |
| 3 |
16667015 |
LTD"ISCHENDERUN-IMPEX CO" |
26 office, 23/5a Alba Iulia str.,
Chisinau |
tel:541850 |
1223,1 |
5,8 |
| 4 |
236698 |
"NICU-CM" SRL |
3/392 Piata Unirii str., Chisinau |
N/A |
1529,6 |
7,2 |
| 5 |
16859014 |
SRL "LIGA ROMIX INT" |
63/409 Metropolitul Varlam str.,Chisinau |
N/A |
610,4 |
2,9 |
| 6 |
234489 |
"C.I.F." SRL |
3 of , 5/2 Liviu Deleanu str.,
Chisinau |
(022)221221 |
470,8 |
2,2 |
| 7 |
68547 |
F/A"SERELE MOLDOVEI" |
Speia vil., Anenii-Noi district |
(265)22764 |
445,8 |
2,1 |
| 8 |
16025013 |
"ACOPROD-ROSMOL" SRL |
13 Vasile Alexandri str., Causeni |
fax:(022)440366 tel:(022)721920 |
391,4 |
1,8 |
| 9 |
296451 |
"VERITAS" SRL |
8A Strada Padurii str., Chisinau |
tel:(022)212545 |
328,2 |
1,5 |
| 10 |
2277985 |
UNION-OGUZ-AGRO SRL |
53 Lenin str., Vulcanesti |
N/A |
200,4 |
0,9 |
| 11 |
1660012 |
MINISEM SRL |
105 of., 15/2 Onisifor Ghibu str.,
Chisinau |
tel:(0220724723 |
165,8 |
0,8 |
| 12 |
440876 |
IP "ION BIZGAN" |
Puhaceni vilage, Anenii Noi district |
N/A |
162,1 |
0,8 |
| |
|
Total export of vegetables |
|
|
21198,0 |
100,0 |
|
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Do you consider Moldo-Russian economical relations?
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Rezults: |
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Perspective
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59
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Without any perspectives
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177
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Do not know
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246
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