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MOLDOVAN SOYA SECTOR

A VALUE CHAIN ANALYSIS


Final Draft

Chisinau, February 2016


Danube Soya Association
Wiesingerstrasse 6
1010 Vienna, Austria
www.donausoja.org
office@donausoja.org

Austrian Development Agency


Zelinkagasse 2
1010 Vienna, Austria
www.ada.gv.at
office@ada.gv.at

SGS Moldova S.A – member of SGS group


7, M. Eminescu street
2009, Chisinau, Republic of Moldova
www.sgs.com
sgs.moldova@sgs.com

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
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

Moldovan Soya Sector – A Value Chain Analysis 2


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

Moldovan Soya Sector – A Value Chain Analysis 3


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

Moldovan Soya Sector – A Value Chain Analysis 4


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.

Moldovan Soya Sector – A Value Chain Analysis 5


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.
Moldovan Soya Sector – A Value Chain Analysis 6
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.

Moldovan Soya Sector – A Value Chain Analysis 7


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.

Moldovan Soya Sector – A Value Chain Analysis 8


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

Moldovan Soya Sector – A Value Chain Analysis 9


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;

Moldovan Soya Sector – A Value Chain Analysis 10


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


1
The tests on seeds are assured by the State Center for Certification of Seed Laboratory
(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

Moldovan Soya Sector – A Value Chain Analysis 11


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


Characteristics
time registration
Year of second
Maintainer’s
Registration

Variety denomination (see annex 1)


Originator’s

registration
2
number

number
Year of
number

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

Moldovan Soya Sector – A Value Chain Analysis 12


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
3
13. 0263365 VIDRA 117 117 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
4
Source: GOST 9669-75

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, %, The content of seeds The content of the seed,%, Germination, Moisture,
no less of other plants 1 kg no more than, affected %, no less %, no
pcs., no more than more
Total Including Fusariosis Cotyledon
weeds 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

Moldovan Soya Sector – A Value Chain Analysis 13


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.
st
In the EU, from 1 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
5
laboratory 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
6
households ) 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
6
Agricultural 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)

Moldovan Soya Sector – A Value Chain Analysis 14


Table 4 Sown areas with industrial crops
7
1980 1985 1990 1995 2000 2005 2010 2011 2012 2013 2014 2015
Sown areas – total,thousand ha 1839 1790 1733 1530 1527 1540 1460 1447 1468 1494 1503 1500.7
8
Industrial crops , 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
9
Source: NBS

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

500

450

400

350

300

250 Industrial crops


200 soy

150

100

50

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

Moldovan Soya Sector – A Value Chain Analysis 15


Figure 2 Evolution of the area sown with oilseeds in the period of 2006 - 2015, thousand ha
500,0
450,0
400,0
350,0
300,0
250,0
ha

200,0
150,0
100,0
50,0
0,0
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
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

120
111 109
100

80 79
66 66
60
48 48
40

24
20
10 12 12
0 3
1980 1985 1990 1995 2000 2005 2010 2011 2012 2013 2014 2015

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.

Moldovan Soya Sector – A Value Chain Analysis 16


Figure 4 Gross harvest of soy, by categories of producers, thousand tonnes
100,0
90,0 87,5
85,9
80,0
70,0 Agricultural
60,0 61,7 enterprises
55,2
50,0 Farms
40,0
35,0
30,0 Households
24,3 21,4
20,0
16,6
10,0 12,6 10,2
0,0 0,4 0,4 0,6 0,1 0,4
2010 2011 2012 2013 2014

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

2,50

2,00

1,50

1,00

0,50

0,00
1980 1985 1990 1995 2000 2005 2010 2011 2012 2013 2014 2015

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.

Moldovan Soya Sector – A Value Chain Analysis 17


Figure 6 Yield of soy, by categories of producers, t/ha
2,5

2,0

1,5
Agricultural enterprises
Farms
1,0
Households

0,5

0,0
2010 2011 2012 2013 2014

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.

10
Table 5 The area sown with soy, gross harvest and yield per region in 2015
Developing
Sown area, ha Harvested area, ha Gross harvest, t Yield, t/ha
regions
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 Figure 7. The regions of Republic of Moldova

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.

Moldovan Soya Sector – A Value Chain Analysis 18


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
12
(total capacity of storage – 141400 MT), Rogojeni (total capacity of storage – 19800 MT) , 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

Moldovan Soya Sector – A Value Chain Analysis 19


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

Moldovan Soya Sector – A Value Chain Analysis 20


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

Moldovan Soya Sector – A Value Chain Analysis 21


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.
13
Inoculation will be made after 10 days of treatment with insecto - fungicide 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

Moldovan Soya Sector – A Value Chain Analysis 22


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


90000

80000 80817

70000

60000

50000

40000 32860
30000 18650
20000 15400
11600 14500
4165 6750
10000
1373 2486 3675
0
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

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.

Moldovan Soya Sector – A Value Chain Analysis 23


Figure 9 Evolution of organic surfaces, ha
70000
61280
60000

50000 51681

40000
32450
30000
22102
20000 16585
11755
10000 7345
80 168 250 715
0
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

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.
st
Until 1 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
14
NAB on 01/12/2015 were only 2 accredited certification body . 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.
15
Regarding organic soy, in 2014 were certified 464.36 ha including 14.96 ha of soy in first year of
16
conversion and 78.80 ha in the second year of conversion. 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

Moldovan Soya Sector – A Value Chain Analysis 24


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

Large enterprises Medium enterprises


17
Yield, q /ha Yield, q/ha
Specification
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
417 41,70 514 34,29 770 30,80 505 50,50 620 41,35 923 36,94
preparations
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 –
1300 130,00 1548 103,17 1784 71,45 855 85,50 1024 68,26 1189 47,56
total
including:
2.1. Depreciation of fixed
53 5,30 62 4,15 69 2,75 31 3,10 41 2,73 48 1,93
assets
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
159 15,90 194 12,96 228 9,11 122 12,20 152 10,11 181 7,25
inputs
3. Direct inputs -
6588 658,80 8016 534,38 9394 375,76 6946 694,60 8611 574,06 10278 411,12
total
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

Large enterprises Medium enterprises


Specification 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

Moldovan Soya Sector – A Value Chain Analysis 25


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 -
7084 8619 10101 7468 9259 11052
total
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
18
enterprises and farms , MDL/ton
7000

6000

5000

4000
6598
3000 6102
5527 5405 5526
4580
2000

1000

0
I II III IV I II
2014 2015

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

Moldovan Soya Sector – A Value Chain Analysis 26


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
19
insurance schemes for agriculture are lacking .

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
20
standard are respected by the producers.

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
21
what remains of processing soy, with 11- 12 MDL per kg” .

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


C 2010 2011 2012 2013 2014 2015
22

o
d Destination
e Thd Thd Thd Thd Thd Thd
Q, MT Q, MT Q, MT Q, MT Q, MT Q, MT
USD USD USD USD USD USD

1
2 TOTAL 35062 15769 53096 22748 37899 19512 12726 7790 42454 18296 69242 23218
0
1 CSI 12245 4774 12456 5845 10195 5160 - - 16488 8182 3278 1036
0 Russian 659 311 124 55 - - - - 16488 8182 3278 1036
Federation

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

Moldovan Soya Sector – A Value Chain Analysis 27


0 EU 7019 2720 31553 12775 27663 14337 12726 7791 25235 986 30094 10603
9
0 Austria - - - - - - - - 340 320 - -
0 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
15798 8276 9087 4129 41 16 - - 731 251 35870 11580
countries
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

80000

70000 69242
60000
53096
50000 Total

40000 42454 CSI countries


37899
35062
EU countries
30000
Other countries
20000
12726
10000

0
2010 2011 2012 2013 2014 2015
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.

Moldovan Soya Sector – A Value Chain Analysis 28


Figure 12. The structure of soybeans export, %

120

100 0 0 2
17
80 45
52
59 Other countries
60 73
59 EU countries
100
20 CSI countries
40

43
20 35 39
23 27
0 0 5
2010 2011 2012 2013 2014 2015

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,

Moldovan Soya Sector – A Value Chain Analysis 29


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

2500

2000

1500 Cattle
Pigs
1000 Sheep and goat
Horses
500

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

100%

98%

96%

94%

92%

90%

88%
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

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.

Moldovan Soya Sector – A Value Chain Analysis 30


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

100%

90%

80%

70% 392,5 442,3 379,7 381,7 398,5


463,3
60%
Households
50%
Farms
40% Agricultural enterprises
30%

20% 246,9 275,3 241,4 241,5 246,0


241,2
10%

0%
2009 2010 2011 2012 2013 2014

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


including:
Of which: Of which:
By By
Products, 2013/
enterprises enterprises Products,
Product Code total 2014,
with main Large with auxiliary Agricultural total 2013
2014 %
industrial enterprises industrial entreprise
activity activity
1 2 3 4 5 6 7 8 9
Crude
soybean oil
and its
fractions, 104121000 2411.6 2292.3 1282.7 119.3 119.3 2281.1 105.7
not
chemically
modified
Cake and
other solid
residues
resulting 104141300 16289.9 15737.8 8472.6 552.1 546.3 11876.6 137.2
from the
extraction
of fats or

Moldovan Soya Sector – A Value Chain Analysis 31


soybean oil
Flour and
meal of
104142000 34717.7 32259.6 32259.6 2458.1 - 15638.5 222
fruit and
oilseeds
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


2011 2014
Code Product name Quantity, Amount, Amount, thd
Quantity, MT
MT thd USD USD
1507 Soy oil and its
fractions, even
refined, but not 42.14 21.9 74.27 46.1
chemically modified,
total
EU countries, of
2.327 4.1 17.97 3.0
which
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


23
Code Product 2010 2011 2012 2012 2014 2015
Q, MT Thd Q, MT Thd Q, MT Thd Q, MT Thd Q, MT Thd Q, MT Thd
USD USD USD USD USD USD
21031 Soy sauce, 39 115 36 106 43 139 56 161 74 190 73 140
0000 total
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

Moldovan Soya Sector – A Value Chain Analysis 32


Table 13. Imports of soy cake, 2010-2015
24
Code Product 2010 2011 2012 2012 2014 2015
Q, MT Thd Q, MT Thd Q, MT Thd Q, MT Thd Q, MT Thd Q, MT Thd
USD USD USD USD USD USD
23040 Soy cake,
11470 5219 10851 4978 11176 7036 10539 6650 15767 9608 17296 7593
0000 total
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


Reference value
Parameter Refined oil
Hydrated oil
Deodorized Unbleached
Odour and colour Transparent
Colour -
Characteristic to soybean oil, without foreign smell and taste;
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

Moldovan Soya Sector – A Value Chain Analysis 33


Phosphorous, %, maximum:
- recalculated to stearooleolecitine
- recalculated to Р2О5 0,05 0,05 0,20
0,004 0,004 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 0,919-0,925
20°C)* 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 of typical soybean meal, free
Smell
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 0,025
toxin Т-2 0,1
zearalenone 1,0
The content of toxic elements, mln -1 (mg/kg), maximum:
lead
0,5
cadmium
0,1
mercury
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 0,1
including
particle size larger than 2 mm and with sharp edges Not allowed
Infection Not allowed
Source: standard GOST 12220-96

Moldovan Soya Sector – A Value Chain Analysis 34


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!!)

Moldovan Soya Sector – A Value Chain Analysis 35


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.

Moldovan Soya Sector – A Value Chain Analysis 36


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.

Moldovan Soya Sector – A Value Chain Analysis 37


II. Legislation background and proposals

2.1 Relevant policies and strategies


25
There is 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). 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
Moldovan Soya Sector – A Value Chain Analysis 38
• 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
26
products, food products and fodder.

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
Moldovan Soya Sector – A Value Chain Analysis 39
• 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.
Moldovan Soya Sector – A Value Chain Analysis 40
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:

Moldovan Soya Sector – A Value Chain Analysis 41


(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
27
presented in addition the following :
- 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)
Moldovan Soya Sector – A Value Chain Analysis 42
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
1
phytosanitary quarantine, issued under art. 26 .
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
28
To obtain quarantine phytosanitary permit for import (transit) :
- 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


29
Tax payer CIT 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.
Moldovan Soya Sector – A Value Chain Analysis 43
Legal entities 12
Legal entities (small & medium businesses 3
30

enterprises)
Source: The Tax Code
2. The social and medical insurance
For the employers in agriculture (individuals and businesses) contribution rate of compulsory state
31
social insurance fund is 22% of salary and other payments for all staff of the economic unit.
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
32
employees) .

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

Custom duty (% of cost,


Tariff position Product name
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
Moldovan Soya Sector – A Value Chain Analysis 44
1507 Soybean oil and its fractions, refined, but not chemically
5
modified
2103 10 000 Soy sauce 15
2304 00 000 Cake and other solid residues resulting from the extraction
5
of fats or soybean oil
Source: Combined nomenclature of goods

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

Moldovan Soya Sector – A Value Chain Analysis 45


III. SOCIAL IMPACT
a. Economic, socio-economic situation of the sector participants, and compared to local income situation
33
Available income of the population . 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 1349,9 1438,3 1560,4 1651,1 1853,6
average per person)
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
34
Individual non agricultural activity 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
Moldovan Soya Sector – A Value Chain Analysis 46
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.

Moldovan Soya Sector – A Value Chain Analysis 47


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
35
Although the financing of the agricultural sector 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
Moldovan Soya Sector – A Value Chain Analysis 48
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
36
Moldova AgroIndBank
Credit Scope Amount, Curren Loan Rates, % Notes
thousand cy term,
month
s
Multioptional Short term 5-50 MDL Not 19.5 – Unsecured
Agro financing of the more 20.25 loan
acquisition of raw 24
materials for
creation/maintena
nce of the crops,
harvesting
Agro Plus Formation and 10-700 MDL 36-60 17 - 19 Mix
financing of guarantees
working capital; – movable
investments in and/or
procurement of immovable
the machinery
37
Moldincombank
PROMPT Financing of trade 100 MDL unsecured
OPTIM and production 500 MDL
MAJOR 1500 MDL
38
Fincombank
AgroFinSez Replenishment of Established MDL, Up to Established secured
on circulating assets in USD, 18 individually
AgroFinInve Investment credit dependence EUR Up to secured Own
st of client’ 60 contribution
needs to the
project –
20%
39
Comertbank

36
http://maib.md/ro/credite-pentru-agricultura/
37
https://www.micb.md/microcredit/
38
http://www.fincombank.com/agrocredit-md/
Moldovan Soya Sector – A Value Chain Analysis 49
PARTNER For enterprises Max 100 MDL Up to 20 - 24 unsecured Experience
development, 24 in
including replenish agriculture
of current assets, minimum 1
purchase of the year
equipment, others
40
Mobiasbanca
Microcredit For working capital Unlimited, MDL (or Up to 24 Unsecured
from 20 equivale for an
Microcredit For investment Unlimited, nt in Maximu amount up
from 20 USD, m 60 to 150
EUR thousand
MDL
41
ProCredit Bank
Credit for agriculture up to 10 EUR 12 21 – 23.50 secured
(equival 13 – 36 20.50 - 23
ent in 37 - 60 -
10 - 20 MDL 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
Moldovan Soya Sector – A Value Chain Analysis 50
• 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 %)
2009 2010 2011 2012 2013
Functional Groups
Agriculture, forestry, fishery and water 1034,10 857,70 843,50 1272,70 1386,30
(Gr. 11) (90,00%) (87,30%) (86,80%) (89,90%) (90,70%)
Education (Gr. 6) 113,40 123,70 127,20 141,70 139,90
(9,90) (12,60%) 913,10%) (10,00%) (9,20%)
Social assistance and protection (Gr. 1,30 1,30 1,40 1,50 1,80
10) (0,10%) (0,10%) (0,10%) (0,10%) (0,10%)
Total 1148,80 982,70 972,10 1415,90 1528,00
(100%) (100%) (100%) (100%) (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).

Moldovan Soya Sector – A Value Chain Analysis 51


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

%GDP % Total expenses Nominal Real agriculture


agriculture expenditure
expenditure
42
Source: Expert Grup

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.

42
www.expert-grup.org
Moldovan Soya Sector – A Value Chain Analysis 52
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.

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

43
www.maia.gov.md
Moldovan Soya Sector – A Value Chain Analysis 53
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 Reproduction Quantity, MT
denomination
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 Riscani Aura B 30
Agricol”
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

Moldovan Soya Sector – A Value Chain Analysis 54


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
44
A practical cooperation in agriculture is the cooperatives - 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
Moldovan Soya Sector – A Value Chain Analysis 55
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
Moldovan Soya Sector – A Value Chain Analysis 56
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.

Moldovan Soya Sector – A Value Chain Analysis 57


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

Moldovan Soya Sector – A Value Chain Analysis 58


“Trans Cargo Terminal” LLC, a subsidiary company of Trans Oil Group of Companies, constructed and
45
operates the grain terminal in collaboration with Danube Logistics .

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
Moldovan Soya Sector – A Value Chain Analysis 59
11 days. The storage of oil products is charged as follows: - for 15 – 30 days – 3 USD per MT per day, 31
46
– 60 days – 4 USD per MT per day, for 61 – 90 days – 5 USD per MT per day.

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.

46
www.gifp.md
Moldovan Soya Sector – A Value Chain Analysis 60
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.

Moldovan Soya Sector – A Value Chain Analysis 61


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

Moldovan Soya Sector – A Value Chain Analysis 62


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.
Moldovan Soya Sector – A Value Chain Analysis 63
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.

Moldovan Soya Sector – A Value Chain Analysis 64


• 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.

47
- next urgent steps
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.
Moldovan Soya Sector – A Value Chain Analysis 65
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)

Moldovan Soya Sector – A Value Chain Analysis 66


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

Moldovan Soya Sector – A Value Chain Analysis 67


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

Moldovan Soya Sector – A Value Chain Analysis 68


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
st
F1 hybrid I 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

Moldovan Soya Sector – A Value Chain Analysis 69


Annex 2
Foreign assistance projects in the agrifood sector, 2015

Type of Implementation Financer/Implem


No. Project title General objective Buget
assistance period enter

1. Disaster and Climate Risk credit Contributing to poverty reduction 2 million USD 2010 - 2015 World Bank
Management Project through disaster risk management in (total budget of
(Component C: initiate activities for order to protect the most vulnerable project –
adaptation to climate risks in agriculture). segment of society. 10 million USD)

2. Agriculture Competitiveness Project credit Enhance the competitiveness of the 28,4 million USD 2012-2017 World Bank
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.
3. Rural financial services and credit Supporting the efforts of Moldova in the 20 million USD International Fund
agribusiness development project agricultural sector, this will meet the for Agricultural
(IFAD-V) local market as well as exports. 2011 - 2016 Development
(Credit source (IFAD)
exhausted)
4. Inclusive Rural Economic and Climate credit/grant The overall goal of the IRECR is to 25,8 million USD 2014-2017 International Fund
Resilience Programme (IFAD-VI) increase the income and climate for Agricultural
resilience of the rural poor. Development
(IFAD)
5. Food Security Project for grant These funds are then used for local 21 million USD 2000 - present Japanese
Underprivileged Farmers 2KR economic and social development Government
projects focusing on
supporting small-scale farmers
and implementing measures
against poverty.
6. Credit conditional assistance credit Increasing competitiveness through 100 million EURO 2014-2015 Government of
restructuring and modernization of (90 million EURO for Poland
agriculture, gradually increasing the

Moldovan Soya Sector – A Value Chain Analysis 70


share of high value added agricultural agroindustrial
products. sector)

7. Improved Pesticide and Chemicals Technical The proposed project tends to assume N/A 2012-2015 Food and
Management in the former Soviet assistance a catalytic role in developing a Agriculture
Union systematic approach to obsolete Organization of the
pesticides, POPs and hazardous United Nations
chemicals management in the region. (FAO)
Donor 75% - the
European
Commission
8. Support for adaptation and Technical Support for the development and 420 000 USD 2015-2016 Food and
implementation of Integrated Pest assistance implementation of national programs on Agriculture
Management in Moldova adoption and promotion of integrated Organization of the
pest management. United Nations
(FAO)

9. Technical Sustainable management of genetic 320 000 USD 2015-2016 Food and
Development of the National Strategy assistance resources in the livestock sector Agriculture
and Action Plan for animal genetic Organization of the
resources and dairy cattle genetic United Nations
improvement programme (FAO)

10. Wine sector restructuring program credit The WSRP aims to contribute to wine 75 million EURO 2011-2016 European
sector recovery Investment Bank
11. Project "Fruit Garden of Moldova" credit Creation and modernization of 120 million EURO 2014-2020 European
orchards, procurement of equipment for Investment Bank
improving resource efficiency in
production, processing, post-harvest
handling and logistics; providing
training and research specific to the
sector.
12. Competitivitatea Agricolă şi Technical Increasing the Moldovan agricultural 15,9 million USD 2011-2016 USAID/MCC
Dezvoltarea Întreprinderilor assistance sector successes in producing and
Moldovan Soya Sector – A Value Chain Analysis 71
(ACED) marketing high value products.
13. The Agricultural Competitiveness and Technical Advancing Moldova's efforts in 9,2 million USD 2010-2015 USAID
Enterprise Development Project assistance promoting a strong, diversified and
(CEED-II) export-oriented, by improving the
(Component Wine and emerging export competitiveness and efficiency of
industry) national key industries.
14. Transition to high value agriculture grant Increasing incomes in the rural areas 102 million USD 2011-N/A MCA-Moldova
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.

Moldovan Soya Sector – A Value Chain Analysis 72


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 tm.accesalgrup@gmail.com 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 g_panfil@yahoo.com P
8. Agro-Product LLC FPC Gamureac Vladimir Colicauti, Briceni +37369262633 agro-fruct@mail.ru P
9. Agro-SZM LLC Hropotinschi Victor Drochia +37369107139 victor.hropotinschi@suedzuker.md P
10. Agro Banig LLC Barat Nicolae Iabloana, Glodeni +37369051379 agrobanig@mail.ru P
11. AgroCristi-MS CAP Lisii Mihail Tarnova, Donduseni +37369143992 - P
12. Agrodenidan LLC SC Vornicescu Aliona Cotiujeni, Briceni +37369152054 dorin6767@mail.ru P, GMO
13. Agroferm Plus LLC Grecu Viorica Glinjeni, Falesti +37369112064 - P
14. Agrofix-Com LLC SC Silnic Valentina Hechiul Vechi, Singerei +37369631982 moara.alexandreni@mail.ru 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 zina.sochirca@mail.ru P
21. Agrostoc CI Tagadiuc Igor Chisinau +37368007118 info@agrostoc.md P
22. Agrotehimpex LLC Prepelița Alexandru Balti +37369141098 agrotehimport@nordnet.md 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 soroca_office@amg-holding.md P
29. Amonti-Agro LLC Semenciuc Andrei Navirnet, Falesti +37368598143 s_ion@mail.ru 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 anvar-com@nordnet.md P, E
33. Ariprodagro LLC Suveica Ludmila Arionesti, Donduseni +37379707882 P
34. Arpan LLC Joian Vladimir Heciul Vechi, Singerei +37369123716 vladimirjoian@mail.ru P
35. Ascensiune LLC Banuh Raisa Gaspar Edinet +37360953534 ascensiune@mail.ru P
Moldovan Soya Sector – A Value Chain Analysis 73
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 iubanari@gmail.com P
42. Baronceanca LLC Rotari Valeriu Baroncea, Drochia +37368843433 sef-959@rambler.ru P
43. Basarabia CAP Calmic Serghei Harbovat, Anenii Noi +373265 72398 cap.basarabia@mail.ru 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 akishinevskiy@mail.ru P
48. Bindagra-Com LLC Darie Gheorghe Borosenii Noi, Riscani +37369169189 - P
49. Bitic-Agro LLC Gherman Ion Branzeni, Glodeni +37369370898 gherman61@mail.ru P
50. Bogalecon-Moldova LLC Axentii Petru Hijdieni, Glodeni village +37369121430 victorscripnic@mail.ru 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 boubatrinveronica@mail.ru P
56. Boțoroaga Tatiana GT Botoroaga T atiana Alexandreni, Edinet +37369581508 - P
57. Broters LLC Anghel Lion Chisinau +37369106621 broters@mail.ru P
58. Bucovăț LLC Mirzac Valerian Chisinau +373222019 bucovat@mail.ru 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 gtburlacu@mail.ru 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 chiriac001@mail.ru P
75. Cobgiacasor LLC Eremita Vladimir Volovita, Soroca +37369106898 - P, GMO
Moldovan Soya Sector – A Value Chain Analysis 74
76. Nicolae GT Cojocaru Nicolae Soldanesti +37369181746 - P
77. Colegiul Agricol din Taul Nichitovici Marian Taul, Donduseni +373251 61247 cadon@yandex.ru P
78. Colicautanul LLC Lupu Mihai Colicauti, Briceni , +37369202907 vadim.lupu@mail.ru 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 cozmeanca-prim@mail.ru 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 cubvas@mail.ru 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 danulischii@mail.ru 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 t81777@gmail.com P
101. Finat-Agro LLC Berdea Nicolae Albinetul Vechi, Falesti +37367170321 - P
102. Fortina Labis LLC Placinta Anatol Floreni, Ungheni +37369249049 lefcons@yahoo.com P
103. Frapex Agro LLC Rotari Nicolai Fundurii Vechi, Glodeni +37379451498 frapex-agro@mail.ru 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 andreigirlea@mail.ru 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 kiktenko-nuts@mail.ru P
Moldovan Soya Sector – A Value Chain Analysis 75
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 guraugheorghe@mail.ru 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 gheorgherussu@mail.ru 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 togirbagro@rambler.ru P
131. Infotago LLC Gheras Ana Burlanesti, Edinet +37369055663 - P
132. Interagroinvest SA Ciubuc Ion Chisinau +37369103540 interagroinvest@mail.ru 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 mavil58@mail.ru 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 limbenii@mail.ru P
146. Livia Tatarenco GT Tatarenco Dumitru Zahorna, Soldanesti +37369139599 - P
147. Logofat-Prim LLC Cires Vasile Logofteni, Falesti +37369648927 LLCheuvelland@gmail.com 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 mnoga@inbox.ru P, GMO
154. Mihalasanul LLC Ostavciuc Gheorghe Mihalaseni, Ocnita +37327173000 - P
155. Misspend LLC Ceban Zinaida Sudarca, Donduseni +37368277177 - P
Moldovan Soya Sector – A Value Chain Analysis 76
156. Mita Igor GT Mita Igor Alexandreni, Edinet +37368197093 - P
157. Mospuragro LLC Turea Grigore Catranic, Falesti +37325952769 mospuragro@mail.ru 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 elenag62@mail.ru P
168. Palaiciuc Constantin GT Palaiciuc Constantin Bulaiesti, Orhei +37379579184 - P, GMO
169. Palmoc-Agro LLC Tirchi Pavel Rediul Mare, Ocnita +37379853733 palmoc-agro@mail.ru 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 pavliuc@inbox.ru P
177. Plantagor LLC Romandas Ion Glodeni, Glodeni +37369300423 plantagor-LLC@mail.ru 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 protuvimcont@mail.md P
187. Railean-Plus LLC Railean Victor Bardar, Ialoveni +37379552082 iulian@mail.ru P
188. Rairec-Plus LLC Rarancean Nina Sarata Veche, Falesti +37369128189 - P
189. Reforma CM LLC Ceban Marcel Terebna, Edinet +37369209447 cotos.miraida@mail.ru 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 tania.lungu@mail.ru 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 LLCschit@mtc-cr.md P
Moldovan Soya Sector – A Value Chain Analysis 77
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 soieviivekm@mail.ru 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 stancauti@gmail.com 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 dianaveci@mail.ru 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 tradind@transoilinternational.com P, E
223. Trital-Nord LLC SC Cebotari Gabriel Ocnita +37369206411 trital-nord@mail.ru 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 vicmar-agro@mail.ru P
Moldovan Soya Sector – A Value Chain Analysis 78
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 office@viva-igna.com 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 info@wetrade.md P
245. WeTrade LLC Vasilachi Iurie Chisinau +37379409864 info@wetrade.md 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 adm-reparatie@mail.md M
2. Avicola JSC Urzica Iurie Corlateni, Riscani +37325656333 avicola@mail.ru M
3. Bio Componj Raps LLC Tutuc Victor Lipcani, Briceni +37369026651 bio.componj.raps@gmail.com M
4. Oil extraction plant SA Gurdura Mihail Bender 552 26795 - M
5. Floarea Soarelui JSC Ostrovetchi Stela Balti +37323180209 office@floris.md M, E
6. Gurman Olioterra LLC Secrieru Liviu Chisinau +37322421567 olioterra@inbox.ru M, I, E
7. Moldagroproduct LLC Gladcov Ghenadie Chisinau +37368232277 moldagroproduct@mail.ru M, I, E
8. Trital-Nord LLC SC Cebotari Gabriel Ocnita +37327126066 trital-nord@mail.ru 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 vicman86@mail.ru D
2. Alitex-Com LLC Stratulat Alexei Chisinau +37379413941 alitexcom@mail.ru D
3. Ceza LLC Guțu Ion Chisinau +37369175606 cezaLLC@gmail.ru D
4. Colprodcoop Singerei Zaporojan Valentin Chisinau +37326222290 - D
5. Creavita LLC Ili Vasile Chisinau +37322260095 info@creavita.md D

Moldovan Soya Sector – A Value Chain Analysis 79


6. Customagic LLC Bruma Radu Chisinau +37369870500 secretar@perla.md D, I
7. Felenta LLC Schirca Tudor Chisinau +37379465812 felenta2001@yahoo.com D, I
8. Fison LLC Zavatin Dumitru Chisinau +37322432941 fison@fison.md D
9. Moldovanu Carolina Moldovanu Valentin Chisinau +37322312041 - D
10. Multievo LLC Grosu Veaceslav Chisinau +37322421686 info@multievo.md D
11. Valul Traian LLC Harti Vasile Chisinau +37322221908 valul-traian@logitera.md I, E
12. Volgoproduct-Bas LLC Ranțev Dumitru Balti +37369176823 volgoproduct@mail.ru GMO
13. Viodimalex LLC SC Prisacari Alexandru Chisinau +37369109806 viodimalex@inbox.ru D, E
14. Tovi ImExpo LLC Russu Svetlana Sofia, Drochia +37360202518 tov-imexpo@mail.ru D, E
15. Tocardo Agro LLC Dodita Ion Mihaileni, Riscani +37369265881 - D
16. Rostan LLC Stoianov Andrei Bender +37355228456 ooo.rostan@mail.ru D, E
17. Rostoc-Rustas LLC Evtodiev Iurie Fiodor Transnistria 55737470 rostok_rustas@mail.ru GMO
18. Megasurs LLC Codreanu Natalia Chisinau +37360157778 megasurs@mail.ru D, E
19. Memola-Grup LLC ICS Ersoy Mehmet Chisinau +37369122627 memolagrup@mail.ru D, E
20. Kelley Grains Impex LLC Colesnic Marcel Chisinau +373(22)276578 kelley@mtc.md D, E
21. Ivalaga-Com LLC Agachi Ion Balti +37379454316 ivalaga-com@nordnet.md D
22. Holda-Argintie SA Gherman Valerian Drochia +37378300183 holdaargintie@mail.ru D
23. Cepoi Adrian GT Cepoi Adrian Mihaileni, Riscani +37369534577 - D
24. Helian Agro Ceriale LLC Turcanu Vasile Drochia +37360803322 vasile.turcanu@prutul.ro D, E
25. Gruancri-Prim LLC Grusca Iurie Balti +37369370055 - D, E GMO
26. Grap LLC Gradinari Valeriu Balti +37369128116 grap_LLC@mail.ru D
27. Esase Grup LLC Zaharciuc Oleg Chisinau +37368777111 exportmoldova@mail.ru D
28. Evrica CP FCP Joreanu Vasile Chisinau +373225027 evrica.cp@gmail.com D
29. Energia LLC Babii Carolina Rautel, Falesti district +37367174777 energiabl@mail.ru D, E
D – distributor
GMO - Distributor of GMO soybean
I – importer
E – exporter

Moldovan Soya Sector – A Value Chain Analysis 80

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