AGRICULTURAL UNIVERSITY PLOVDIV

ORGANIC FARMING IN MOLDOVA

Farm Management. Erasmus+ Programm

Accomplished by: Virlan Ana

Associate Professor: Violeta Dirimanova

Plovdiv, 2019
 Organic Farming in Moldova

TABLE OF CONTENTS

ABSTRACT .................................................................................................................................................3
INTRODUCTION .......................................................................................................................................4
ORGANIC AGRICULTURE IN MOLDOVA .........................................................................................5
MARKETS AND TRADE OF ORGANIC PRODUCTS ........................................................................7
CERTIFICATION ....................................................................................................................................11
CONCLUSION ..........................................................................................................................................15
REFERENCES ..........................................................................................................................................16

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 Organic Farming in Moldova

ABSTRACT

“Organic farming is a holistic production management system that supports and contributes
to the health of agro-ecosystems, including biodiversity, biological cycles and the biological
activity of the soil. This type of activity is more typical for the European region; however, it also
plays an important role in the economy of Moldova. Despite the fact that the harvest in the
Republic of Moldova is far from the European dimension, organic agriculture makes a great
contribution to the national economy of the country.

The history of the development of organic agriculture in Moldova has been dragged since
the beginning of the 2000s, when the state gradually introduced additional tools to help
producers of organic products. Therefore, by 2013, the area under organic farming reached
51,681 hectares, which is 2.87% of the total arable land of Moldova. However, in 2014, the area
of organic agriculture decreased due to radical changes in the system of governance of the
country. There are special bodies that allow you to certify organic products. However, it should
be noted that there are a sufficient number of barriers to obtain certain certification, since the
regulations and documents are usually suitable either under the legislation of the Government of
the Republic of Moldova, or under the legislation of the European Union, without the possibility
of satisfying the conditions of both parties.

However, there is considerable potential for further growth. In addition to this, most
Moldovan farmers use small amounts of chemical fertilizers and pesticides, which facilitates the
implementation of organic practices. It also greatly facilitates the process and the proximity of
Moldova to the fast-growing European organic market. It is noteworthy that biodiversity,
traditional landscape restoration and environmental protection are also favorable factors. Finally,
it increases its export earnings, and therefore remains one of the important components of the
country's economy.

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 Organic Farming in Moldova

INTRODUCTION

Organic farming is essentially a soil formation mechanism; keep the soil “alive”, make the
soil “alive” and maintain fertility. Creating a "live" soil is the primary task of all organic
farming. In organic farming, the soil and not the crop is fed. The soil must retain organic matter
and create conditions for the work of microorganisms to release nutrients. Thus, organic
agriculture does not simply replace chemicals with organic substances and does not return to
traditional agriculture. This is the transformation of the soil from the "inanimate" into "living."

The generally accepted organic rules prohibit the use of synthetic fertilizers, pesticides,
growth regulators, feed additives for livestock and an emphasis on long-term soil management,
although there is no single international regulation for organic production. The ethics of organic
farming is to produce all the necessary nutrients for plants on the farm and apply plant protection
products using local resources, minimizing external resources, if not completely abandoning
them. Several methods are used to sustain soil life, such as converting soil and moisture and
maintaining a minimum amount of organic matter in the soil. Farmers should practice green
fertilizer, compost preparation, bio humus, and the use of bio-fertilizers and bio-pesticides. Once
this achieved, the soil will take care of itself with minimal maintenance costs and minimal
external costs.

Organic production is a global system of agriculture and food production, which combines
the best environmental practices, high levels of biodiversity, the preservation of natural resources
and the application of high standards of animal welfare. This is a production method that exists
in the European Union, and, unfortunately, the results in Moldova are much less modest.

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 Organic Farming in Moldova

ORGANIC AGRICULTURE IN MOLDOVA

For the Republic of Moldova, organic agri-food production and its commercialization are a
real chance to entry foreign markets, as the demand for organic agricultural products is growing.
This is as a new opportunity for agricultural exports. The Ministry of the Republic of Moldova
supports the development of organic agriculture for economic, social and environmental
purposes. Nevertheless, despite efforts to increase the number of economic agents using organic
production methods, it turns out that, on the contrary, their number and ecological area are
decreasing. A number of inseparable factors marks the decrease in the number of economic
agents and areas registered in organic agriculture, such as:

• Since 2014, the export of “ecological” products has been carried out without supervision
from the national authority

• National inspection and certification bodies are not recognized by the European
Commission as equivalent.

• On the territory of the Republic of Moldova there are 10 inspection and certification
bodies recognized by the Commission of the European Union for the certification of organic
food in third countries, but not registered at the national level.

• Lack of information about sites, types of crops grown in organic agriculture, determined
by the transfer of economic agents to inspection and certification bodies that are not registered at
the national level.

• Lack of legislative base for granting exemptions for organic agri-food production.

• Lack of a system of state supervision and control over the traceability of organic agri-
food products.

According to official statistics, organic farming grew steadily from 2003 to 2012.
Ecological agricultural land (both certified and converted) increased from 80 to 61 280 ha. In
addition, the number of organic farmers engaged in organic farming increased from 2003–2010,
reaching a maximum of 185.

In Moldova, private control of organic agriculture was introduced, which guaranteed the
certification system and harmonized with the requirements of the European Union, thus the
inspection and certification body certifies the production of organic agri-food products.
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 Organic Farming in Moldova

Inspection and certification bodies should provide the competent authority with information on
economic entities, audited areas, violations found, etc. In 2012, to ensure conformity assessment
of organic production, six inspection and certification bodies were accredited and authorized.
They related to the inspection and certification of organic agriculture in the territory of the
Republic of Moldova. Currently there are two inspection and certification bodies "Certified Eco"
SRL and "Bio Cert Tradiţional" LLL.

According to the data available in 2013, the number of economic operators practicing
organic farming is constantly decreasing, reaching 370 by 2016, and the registered area was
1020 hectares. One of the main reasons for the increase in the registered dynamics was the
favorable policy supported by the Government of the Republic of Moldova, with subsidies since
2007 for reimbursement of expenses during the conversion period. Since 2012, subsidies have
been provided only for perennial plantings, which could have a negative impact on the sector.

Another factor affecting the growth of organic farming was the policy of the European
Union, which sets out detailed rules for the application of Council Regulation (EU) regarding the
regime for importing organic products. Therefore, from third countries allowed the export of
"environmental" products to the EU market. Exports were carried out based on import permits
issued by the authorities of the Member States, national inspection and certification bodies, but
this option was a transitional one.

As of June 2014, the transition period was over, and the import authorization system was
replaced by an equivalent control system. Thus, we can note that in the period from 2003 to 2013
in Moldova there were excellent conditions for the development of organic agriculture,
especially the agreement on direct neighborhood and association with the European Union.

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 Organic Farming in Moldova

MARKETS AND TRADE OF ORGANIC PRODUCTS

Regarding the formation of a national market for organic food, we can say that in the
Republic of Moldova there is only one specialized store specializing in the sale of organic
products, most of which are imported. In addition, the stores do not have specialty stores
dedicated to environmentally friendly products; however, some organic products can sometimes
be seen in large supermarkets.

Organic farming and organic products are not progressing well, the general level of
knowledge in this area is rather low, and the public confuses things when it comes to this topic.
Contrary to the legislation of the Republic of Moldova, such words as “bio”, “bio”, “organic”,
“eco” and “organic” are commonly used on product packaging and carriers to describe products
that do not have organic certification. Thus, since there is no clear line of demarcation for
consumers, organic products compete in the same segment in the local market as traditional
agricultural products, so manufacturers who practice organic production tend to export their
products. This can be explained by relatively more attractive prices for this product category.

Unlike the domestic market, exports of organic products are growing steadily. Significant
growth was achieved in 2012 and 2013, mainly due to producers who began exporting certified
organic cereals to the European Union. In 2013, exports of certified organic products amounted
to 45,000 tons, and 36,000 tons were exported from the processing areas. Exports consisted
mainly of grains, oilseeds and protein crops.

Over the past five years, Moldova has experienced a rapid growth in exports of certified
organic products. The main certified and exported organic products of Moldova are wine, peeled
walnuts, dried fruits, sunflower seeds, sunflower oil, soybean seeds, animal feed wheat, lavender
oil, beans and barley. The main markets for Moldovan organic products are the Czech Republic,

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Germany, Italy, Poland and Slovakia

According to the upcoming UN market assessment on the European market of the main
organic export products from Armenia, Moldova and Ukraine, protein-rich raw materials for
feed mixtures such as oilcake, soybeans and dried beans have one of the largest export
opportunities for Moldova. The market potential is also very promising for cereals (for example,
wheat, maize, barley, rye, triticale, spelled, and oats) and oilseeds, such as sunflower kernels. In
addition, if organic products were processed domestically, producers of organic products in
Moldova could receive significantly higher price premiums on the international market.

In 2015, 64 companies were registered with the Ministry of Organic Farming. At the same
time, according to reports submitted by national inspection and certification bodies registered in
the Organic Farming System, 39 business entities with an area of 1,020 hectares were registered.

According to the current legislative and regulatory acts on organic agri-food production,
national inspection and certification bodies accredited and authorized by the ministry are obliged
to provide information on economic agents, sites checked, violations found, etc. to the
Competent Authority. Thus, it was found that out of 64 economic agents, 45 of which with an

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area of 2,883.11 hectares have concluded contracts with inspection and certification bodies not
recognized by the ministry.

In the Republic of Moldova in 2017, 10 organizations for the verification and certification
of organic agricultural products were recognized. On the other hand, certificates of conformity
issued by national bodies for local inspection and certification of organic products are not
recognized in the European Union. To be included in the List of third countries as an equivalent,
the Republic of Moldova must provide a production system that complies with the principles and
rules of production, equivalent to those set forth in the regulations of the European Union.
Control measures that have equivalent performance to describe a system should ensure the same
level of product conformity. To do this, it is necessary to transfer the regulations of the European
Union to national laws and regulations.

According to the data provided by six out of ten inspection and certification bodies, in
2017, 109 economic agents are operating on an area of 24,708.66 hectares, which practice
organic production methods. Of these, national inspection and certification bodies certify 39
businesses with an area of 1,240 hectares.

Number of operators registered in organic agriculture

in 2003-2018 (ha) in the Republic of Moldova.

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 Organic Farming in Moldova

The area registered in organic agriculture

in 2005-2018 (ha) in the Republic of Moldova

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 Organic Farming in Moldova

CERTIFICATION

Despite the relatively small number of certified operators, there are 11 certification bodies
operating in Moldova. Prices for certification services vary between companies and range from
60 to 90 lei (from 3 to 4.5 euros) 3 per hectare for local companies and $ 2,500 per farm for
international companies. Rates also vary by crop (MAFI 2013). Foreign certification companies
play an important role in the development of organic agriculture and in the promotion of
Moldovan products on international markets. Foreign certification companies for organic
products that operate in Moldova but do not have local accreditation include Agreco, Austria
Biogarantie, BCS Öko-Garantie, Ceres, Ecocert and SGS (EU OFIS 2015). These companies
certify operators exporting to the European Union. In addition, the Italian company Biozoo has
created a local branch in Moldova, which is now independent. However, the reduction of areas,
as well as economic agents registered in organic agriculture, cannot be characterized as the
output of organic operators from the organic agriculture system.

These economic agents certify organic agri-food production in accordance with a standard
equivalent to that of the European Union, control bodies are equivalent, respectively control
authorities and economic agents cannot integrate into a national system that does not comply
with EU legislation, it also had a significant impact on the evolution of the data presented and
Not only. This is detrimental to the image of the entire organic farming sector, since the Ministry
does not have timely information on the number of certified products, the number of certified
operators or inconsistencies identified at the level of the Commission of the European Union.

Another identified obstacle to the development of organic farming is the inability to obtain
subsidies from economic agents that are not registered in the national certification system.

Currently certified for organic products, it works on two parallel platforms. Thus, the
overwhelming majority of economic agents certify organic agri-food production in accordance
with a standard that is equivalent to a European Union standard, but not registered at the national
level. Another part of economic agents certifies products for national control authorities, but they
do not meet the standard equivalent to the European Union standard. This leads to an imbalance
between the interests of manufacturers. On the one hand, those who can integrate into a national
system that does not comply with EU legislation cannot benefit from subsidies, and on the other
hand, producers who cannot export agri-food products with an "organic" European Union. If the
introduction of a monitoring and control system adapted to European standards is not accepted,
Moldova risks staying at this level of development.

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 Organic Farming in Moldova

According to the National Certification Body for Organic Products, the number of
producers requesting organic certificates, allowing them to use the national sign “Organic
Agriculture - Republic of Moldova” - the combination of text and graphic images printed on the
product label is constantly growing.

National control bodies. Current situation

 Certificat Eco SRL

 BioCert Tradițional SRL
 Control Union Dnestr

International control bodies. Current situation.

 A CERT European Organization for Certification S.A.

 Agreco R.F. Göderz GmbH
 Bio.inspecta AG
 CCPB Srl
 CERES Certification of Environmental Standards GmbH
 Control Union Certifications
 Ecocert SA
 Istituto Certificazione Etica e Ambientale
 Organic Standard
 Kiwa BCS Öko-Garantie GmbH
 Letis S.A.

National symbols for product labeling can be used free of charge only by natural or legal
persons - owners of rights. Marks may be applied on products, labels or packages, as well as in
promotional or accompanying documents.

The Ministry of Agriculture and Food Industry manage the sign «Ecological Agriculture -
Republic of Moldova». It can be applied only on food products that meet the standards of
ecological production.

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 Organic Farming in Moldova

Among the first certified companies in Moldova is Bio-Cămara, the organic farm of the
closed type of the “Holy Christmas Monastery” (Zebrichen village, Edenetsky district). With the
support of European projects for the promotion of organic products, the Maria Darius farm in the
village of Chetrosu (Drochia district) grows organic products in greenhouses. The company also
works to promote organic products and their promotion in the domestic and international
markets.

Last year Moldova, despite the loss of the status of the agricultural country, continues to
develop this sector. Thus, companies that specialize in the production of organic food, despite
multiple barriers, continue to grow. Moldova’s organic agriculture company experience with the
largest organic foods trade show.

BioFach is the world's largest trade fair for organic food and agriculture. It is held each
year in Nuremberg, Germany. In 2019, the six largest producers of organic food in Moldova
attended this exhibition.

 Prograin Organic SRL - provides a wide range of organic raw materials for the
feed and food industries.
 Equinox (Crama Domnească SRL) - provides a wide selection of wine products.
 AMG-Kernel SRL - has, by far, the largest fruiting walnut orchard in the Republic
of Moldova.
 Biantti (Ygrick-Group AF) - nuts, dried fruits, cold-pressed oil, flour, additional
goods of individual order.
 Rose Line SRL - the main activity of the farm is the cultivation of two types of
wild rose with a high content of Vitamin C and their processing.
 Natur-Perpetua SRL - production of sea buckthorn varieties Clara and Mara.

Thus, it can be said that the country does not stand still and over time continues to open up
new opportunities for the development of organic business. Participation in international events
provides an opportunity to find additional markets, which favorably affects not only the interest
of local producers in creating production based on organic agriculture, but also provides an
opportunity to improve the social and economic situation of the country.

However, it should be noted separately that despite the prevalence of the brand of
“ecological” product, most of the products that are produced in the Republic of Moldova are
ecological in nature. Most small producers do not have sufficient funding for the use of

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specialized fertilizers, which allows them to grow environmentally friendly products in

conditions of poverty. Another aspect of this situation is the lack of material support for the
product certification process. Thus, the majority of producers, the total share of production,
which accounts for about 80% of all agricultural activities, do not have the ability to define their
products as environmentally friendly, which in turn does not give them any additional benefit or
motivation.

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CONCLUSION

The organic sector of Moldova began to grow rapidly after the initiative of the government
of 2006 to develop competitive organic agriculture in the country. This was facilitated by a
government initiative from 2006, which included a national program to promote the production
of organic agricultural products. The main reason for this growth is the market demand from the
EU, which today accounts for about 54 percent of the total trade flow of Moldova. Because the
organic products of Moldova turned out to be particularly competitive in various segments of the
international market, there is a favorable environment for the further development of the organic
sector of the country. One of the reasons contributing to this development is that it can serve as a
model for Moldova’s broader transition to a green economy. The growing demand for organic
products in the domestic and international markets provides the country with timely
opportunities for the production of valuable goods that bring social, economic and environmental
benefits.

Factors related to the structure of the industry, production capacity and infrastructure;
farmers' access to agricultural resources, complex certification processes (for example, some
producers are certified by local certification bodies that are recognized by the Moldovan
government, but not by the EU, and vice versa) and prohibitive trade rules; However, limited
investment and awareness of organic agriculture at all levels seriously limits the future
development of organic agriculture in Moldova. In addition, despite strong government support
for organic production, subsidies are subject to frequent changes and restrictions that make them
less attractive. Government support also extends only to those that are certified by internal
certification bodies, which means that the sector is divided and important participants are
excluded from the intervention. The continued expansion of exports and domestic markets for
organic products will be a key incentive for farmers in transitioning to organic production, as
well as increasing investment and innovation in a more environmentally sustainable agricultural
sector. Efforts to build the capacity of farmers and service providers, such as traders, processors,
certification bodies and raising awareness of government officials about the benefits of organic
agriculture, should also be an important component of Moldova’s strategy for developing
organic agriculture.

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REFERENCES

Organic Farming, (Veeresh, 2011)

Ministry of Agriculture and Food Industry (MAFI). (2013). various reports, information
notes, individual discussions and information from different departments of the Ministry, that
have been provided as inputs to this report.

EU Organic Farming Information System (OFIS). (2015). List of control bodies and
control authorities in charge of implementing in the Member States the control system mentioned
at title V of Council regulation n° 834/2007. Predefined report: List of all control bodies or
control authorities.

National Bureau of Statistics of the Republic of Moldova. (2011). Statistical workbook of

the Republic of Moldova 2011.

The Market of Organic Food Production in Republic of Moldova. In Scientific Papers.

Management, Economic Engineering in Agriculture and rural development. Movileanu, P.,
Movileanu, V., & Sasu, S. (2013).

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