FEASIBILITY ASSESSMENTS OF INVESTMENTS INTO LUCERNE 
FOR FARMS IN MOLDOVA WITH NO LIVESTOCK  
 
 
COMPOSTING, GREEN MANURING AND EXPORT 
 
 
 
 
 
 
 

 
DISCLAIMER 
The authors take full responsibility for the contents of this report. The opinions expressed do not  
necessarily reflect the view of the European Union or the European Investment Bank. 

FOR ANY FURTHER INFORMATION RELATED TO THIS REPORT PLEASE CONTACT: 
Authors: Henk DE LANGE (henkdl63@gmail.com), Christoph ARNDT (Christoph.Arndt@afci.de) 
 
                    Chisinau, 15.04.2020 
   

1
 CONTENTS:
C  1.  Introduction ...................................................................................................................... 4
2.  The different uses of Lucerne .......................................................................................... 6
O  2.1  Production of Lucerne .............................................................................................. 6
2.1.1  Production guidelines for Moldova .................................................................... 6

N  2.1.2  Costs calculations ............................................................................................. 6

2.1.3  Revenue for farmers when above-ground biomass is sold ............................... 7

T  2.1.4  Value for farmers when above-ground biomass is kept .................................... 9

2.2  Large-scale composting enriched with Lucerne ..................................................... 10

E  2.2.1 
2.2.2 
Process ........................................................................................................... 10
Necessary machinery ...................................................................................... 10

N  2.2.3 
2.2.4 
Cost calculations ............................................................................................. 11
Compost value ................................................................................................ 13

T  2.3 
2.4 
Lucerne for direct fertiliser use ............................................................................... 15
Pelletising or pressing Lucerne for export .............................................................. 16
2.4.1  Market considerations ..................................................................................... 16
S  2.4.2  Necessary machinery ...................................................................................... 17
2.5  Lucerne in a conversion system ............................................................................. 20
3.  Conclusions and recommendations............................................................................... 21

LIST OF TABLES:
Table 1: Costs of growing Lucerne (3-year crop on a per-year basis)
Table 2: Net revenue from the annual Lucerne cuts (3-year crop on a per-year basis)
Table 3: Nutrients in Lucerne hay (per ton of Dry Matter)
Table 4: Annual compost machinery and equipment costs
Table 5: Operational costs for the production of compost from 1250 t fresh material
Table 6: Compost value in organic and conventional production per ton of compost
Table 7: Compost value in organic and conventional production per ton of compost
Table 8: Lucerne hay and pellet prices in Central Europe (purchase price of fodder trade
companies, delivered, net)
Table 9: Machinery costs for Lucerne hay pressing
 

2
 Picture: Ivar Leidus

3
1. INTRODUCTION
In organic systems the use of fertilisers is strictly regulated: The basic principal is that fertilisers
must be produced without the use of any synthetic substances. The allowed fertilisers in or-
ganic farming are laid down in Annex 1 of EU Organic Regulation 889/2008.1 Farm yard ma-
nure, for example, is allowed, but not from “factory farming”.
Many fertilisers approved for organic farming other than farm yard manure from land-based
agriculture are not available in Moldova and would have to be imported which is very expensive
and attracts import duties. In addition, due to long road transport involved, the import of these
fertilisers would be contradictory to any sustainability goals. Organic farming is defined as ag-
riculture with circular nutrient streams reducing as much as possible external inputs.
In organic systems, the combination of agriculture/horticulture with livestock production is es-
sential. Preferably, livestock production should be certified organic as well, but conventional,
land-based animal production could also serve the purpose of making organic horticulture
more sustainable.
However, for organic farms that have no animals (e.g. most producers in Moldova of certified
organic stone fruit, walnuts or field crops), circular nutrient streams are also possible with the
integration of Lucerne into the farming system. This will help to:
‐ Introduce nitrogen fixed from the air into the cropping system
‐ Supply phosphorus, potassium and other elements
‐ Build up soil organic matter and thereby stimulating soil life
‐ Smother competing weeds
‐ Gain economic benefits from sales

There are competing and complementary approaches for the use of the Lucerne crop to
achieve all this:

‐ When Lucerne is cut (about 10 times within the 3 years of cultivation), the green matter
or hay can be used for composting or directly applied to crops as fertiliser, fresh, ensi-
laged or as pellets
‐ The stubbles and roots of Lucerne contain valuable nitrogen and effective organic matter
that is ploughed into the soil after the last cut
‐ Lucerne hay pressed into bales and pellets can also be exported to countries of the Eu-
ropean Union or the Middle East

The main problem in Moldova is that the number of livestock has decreased dramatically since
1990. This is not only a problem for organic production, also conventional farmers are con-
fronted with falling levels of nitrogen, phosphorous and micro elements in the soil. Besides this,
the levels of organic matter (humus) are falling dramatically with a detrimental effect on soil
life. Particularly in organic production systems, the levels of organic matter are very important:
A good level of soil life and organic matter contributes to a high water binding capacity, a better
availability of nutrients and an improved resistance of crops against diseases.

1
https://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:02008R0889-20181112&from=EN
4
Plans to increase the number of dairy cows, sucker cows, beef cattle and laying hens are one
way how to allow for better nutrient cycling and conserving the soil organic matter content while
at the same time filling a growing gap between supply and demand. However, this will take
time and huge investments in genetic material, housing, equipment and machinery.
In the short-term, therefore, growing Lucerne for composting, direct fertilising and export pro-
vides one of the very few opportunities to supply the needed nutrients to organic agriculture
and horticulture and to improve the level of soil organic matter in all types of farming – which
is the basis for long-term sustainability.
This study assesses the economics of making commercial use of Lucerne. It wants to give
orientation to Moldovan companies like Prograin Organic how to create win-wins between con-
tract farmers and their off-takers (such as Prograin Organic) who may want to produce Lucerne
enriched compost as a service to their certified organic contract farmers, Lucerne pellets as a
fertiliser for their contract famers, or Lucerne hay bales and pellets for export.
This study may also be used by organic producers themselves when deciding on their soil
fertility management strategy. It therefore also elaborates recommendations for Moldovan cer-
tified organic producers like Fernuci in Ciuciulea (organic walnut producer), a company which
made a compost pilot trial in November 2019 together with the EIB Fruit Garden of Moldova
project.

5
2. THE DIFFERENT USES OF LUCERNE
This chapter looks first looks at the production of Lucerne and then three different commercial
uses of the crop:
1) Production of compost in which Lucerne will be one of the ingredients
2) Use of Lucerne as fertiliser on-farm (fresh, ensilaged or as pellets)
3) Exporting of Lucerne bales or pellets
The chapter finally assesses Lucerne as a crop for the conversion period when an agricultural
or horticultural producer converts to certified organic farming.

2.1 Production of Lucerne

2.1.1 Production guidelines for Moldova
The circumstances in Moldova for the production of Lucerne are good: Lucerne does well when
the pH is higher as it is the case with many Moldovan soils (pH of 7-8). It is the appropriate
crop where ground water is deep and soils have a high cation exchange capacity. The high
sun intensity in Moldova makes it possible to dry cut Lucerne quickly in the field.
Lucerne is best used as a 3-year crop. It is sown in Year 0, after the cereal crop has been
harvested in July, or in early spring of Year 1 until April. The stubbles are worked into the soil
either in autumn of Year 3, before sowing winter wheat or the planting of a tree crop, or in
spring of Year 4 before sowing sunflowers or maize. Between two Lucerne crops, a period of
5-6 years has to elapse.
Some care has to be taken by the farmer since Lucerne is very sensitive to the pressure by
tyres of tractors and machinery. The headland of the field with more load by machinery should
be sown with a grass/clover mixture instead of Lucerne. Under wet conditions, the field should
not be entered. Lucerne should not be cut lower than 10 cm (first cut 15 cm).
The long roots (4-5 m, max 8 m) break up ploughing pans and recover leached nutrients. The
long roots also make Lucerne rather drought tolerant. To develop fast, a good start is important.
For optimal nitrogen fixation, the seeds should be mixed with Rhizobium bacteria (Sinorhizo-
bium meliloti) and water-soluble phosphate should be readily available in the field (pig or
chicken manure or superphosphate). A mixture with some Egyptian clover will lead to early
canopy development.

2.1.2 Costs calculations

The costs of growing Lucerne are shown in the below table. We show the costs of the 3-year
cycle on a per-year and per-hectare basis.

6
Table 1: Costs of growing Lucerne (3-year crop on a per-year basis)
Cost item Amount Unit Unit price Unit price Cost Cost
per ha organic conv. organic conv.
production production production production
(EUR) (EUR) (EUR) (EUR)

Seed of Lucerne (30 kg / 3 years) 10 kg 10 5 100 50

Seed of Egyptian clover (for early can- 2 kg 16 16 32 32

opy development) (5 kg / 3 years)

Phosphorous fertiliser 70 kg 1.60 0.80 112 56

Potassium fertiliser 180 kg 1.60 0.80 288 144

Machinery costs (ploughing, seedbed 1 ha 75 75 75 75

preparation, sowing, fertilising, cultiva-
tion) (225 EUR / 3 years)

Weeding (in organic us of striegel, in 1 time 40 25 40 25

conventional chemical)

Interest (over an average of 6 months) 2.5 % 647 382 16 10

TOTAL/YEAR 663 392

2.1.3 Revenue for farmers when above-ground biomass is sold

We assume a yield of 10 t/ha DM (Dry Matter) per year for the 3-4 cuts made in each of the
Years 1, 2 and 3 for the North of Moldova and only 8 t/ha DM for the South of Moldova due to
less precipitation. This translates into 11 t/ha of hay in the North and 9 t/ha in the South.
This hay could be sold at 115 EUR/t for conventional hay if baled and transported (128 EUR/t
DM) or at 60 EUR/t DM unharvested (harvest done by the buyer). The second option is prob-
ably the preferred one for farmers who shy away from investments into efficient, modern ma-
chinery. This could also be an interesting option for off-takers who want to either produce Lu-
cerne pellets and bales for export, or Lucerne pellets and Lucerne-enriched compost to be sold
back to their contract farmers who may, if certified organic, find it difficult to procure the few
allowed fertilisers needed to maintain soil fertility and yield stability. A mark-up of 33% would
lead to a price of 80 EUR/t DM for unharvested certified organic hay.
The second type of revenue for farmers comes from the nitrogen in the stubbles and roots
which are ploughed up after the 3-year cropping period. With 30 kg/t nitrogen in root and stub-
ble DM and 6 t/ha of root and stubble DM, this nitrogen gain which can be attributed to biolog-
ical nitrogen fixation amounts to 180 kg/ha which is 60 kg/ha on an annual basis.
In the below table we consider a mark-up of 50% for organic-certified hay for Southern Moldova
(90 EUR/t DM for unharvested certified organic hay) in order to make the production of Lucerne
worthwhile in an area with less precipitation having lower yields. This higher mark-up may be
justified economically due to the shorter distance to the port of Giurgiulesti from where organic-
certified Lucerne hay and pellets would be exported to Central Europe and the Middle East.

7
Table 2: Net revenue from the annual Lucerne cuts (3-year crop on a per-year basis)
Description Amount Unit Unit price Unit price Cost Cost
per ha organic conv. organic conv.
prod. prod. production production
(EUR) (EUR) (EUR) (EUR)

Costs of growing Lucerne 663 392

Residual nitrogen in stubbles and roots 60 kg 2.00 0.80 120 48

Hay DM in Northern Moldova (unharvested) 10 tons 80 602 800 600

Hay DM in Southern Moldova (unharvested) 8 tons 90 60 720 480

Gross revenue Northern Moldova 920 648

Gross revenue Southern Moldova 840 528

Net revenue Northern Moldova 257 256

Net revenue Southern Moldova 177 136

In this variant, the farmer has no investment costs and no hassles with harvesting and market-
ing while still receiving all soil fertility benefits of integrating Lucerne into the crop rotation and
making some money at the end of the year. However, the risk of poor harvest due to drought
is still with the farmer. In good years, 12 t/ha DM could be produced in Northern Moldova which
would increase the net revenue to 417 EUR/ha (organic and 376 EUR/ha conventional). How-
ever, in bad years the DM yield of a non-irrigated crop could drop to only 8 t/ha reducing the
net revenue to only 97 EUR/ha (organic and 136 EUR/ha conventional).
Other variants are also conceivable: One could think about an arrangement where not the
farmer, but the buyer bears the risk of crop shortfall, i.e. the buyer buys the above-ground
biomass per hectare and not on a 10 t/ha basis. In that case the buyer could pay no more than
500 EUR/ha for conventional Lucerne and with a mark-up of 33%, 667 EUR/ha for organic
Lucerne. This will, however, bring about a net revenue of only 124 EUR/ha (organic and
156 EUR/ha conventional) which may not be very attractive for farmers.
Another variant would be that the organic certified farmer could try to sell baled Lucerne hay
to small livestock producers at about 128 EUR/t DM3. This would increase the gross revenue
of an organic farmer in Northern Moldova to about 1,400 EUR/ha with additional 473 EUR/ha4
of machinery costs for mowing, merging, pressing and transporting which lets the net revenue
amount to 266 EUR/ha, i.e. about equal to the scenario in which the farmers sells the Lucerne
unharvested. However, he would have the risk of machinery breakdown and the marketing
hassle. If the buyer does the cutting and pressing with larger and more powerful machinery
than currently available in Moldova, which he could afford due to economies of scale, the unit
costs for harvesting can drop noticeably. For the conventional farmer in Northern Moldova,

2
For comparison, French farmers producing Lucerne receive 80-90 EUR/t DM unharvested (conventional)
and 110-120 EUR/t DM unharvested (organic)
3
45 MDL/bale of hay
4
Four cuts; per cut 36 EUR/ha for cutting, 21 EUR/ha for merging, 50 EUR/ha for pressing (i.e. 7 MDL/bale)
and 12 EUR/ha for transporting
8
who produces Lucerne with less costs, selling baled Lucerne hay to small livestock producers
may be worthwhile: His net revenue would increase to 465 EUR/ha.

2.1.4 Value for farmers when above-ground biomass is kept

This study relates to agricultural and horticultural systems without any livestock. The most
common use of Lucerne, feeding own animals, is therefore redundant. However, the farmer
could use chopped Lucerne either fresh, ensilaged and or composted to fertilise own high-
value crops such as organic fruits, nuts and vegetables. Organic farms in Central Europe (Ger-
many, Austria, Switzerland) incorporate Lucerne into the soil or use it as mulch, the latter es-
pecially for vegetables. Another way to use Lucerne for fertilisation is with pellets (see Chapter
2.3).
Lucerne is especially rich in nitrogen, especially when cut at early flowering (30% of flowers).
The table below shows the nutritive value of Lucerne used as fertiliser for agriculture and hor-
ticulture.

Table 3: Nutrients in Lucerne hay (per ton of Dry Matter)

Nutrient / Ingredient Average Unit Average Average Lucerne hay Lucerne hay
amount price in price in value per ton value per ton
organic conventional in organic in convent.
production production production production
(EUR) (EUR) (EUR) (EUR)

Dry matter 900 kg

Effective Organic Matter* 289 kg 0,05 0,05 14 14

Nitrogen (N) 25 kg 2,00 0,80 50 20

Phosphate (P2O5) 7 kg 1,60 0,80 11 5

Potassium (K2O) 30 kg 1,60 0,80 48 24

Calcium (CaO) 18 kg 0,25 0,25 5 5

Magnesium (MgO) 9 kg 0,30 0,30 3 3

Sulphur (SO3) 7 kg 0,41 0,35 3 2

TOTAL   134 74
*Most of the organic material in compost is converted into carbon dioxide and water in the soil in the first
year. The remaining organic material is called effective organic matter.

For the organic farmer who might sell his Lucerne hay for 128 EUR/t DM, it could be worthwhile
to reconsider and rather use the chopped hay for fertilising purposes as it has a fertilising value
of 134 EUR/t. For the conventional farmer, on the contrary, the fertilising value is only
74 EUR/t.

9
 2.2 Large-scale composting enriched with Lucerne
2.2.1 Process
Professional, commercial aerobic composting is based on the following principals:
1) Collecting as much as available organic materials from as close as possible to the place
where the compost will be used: Distance costs money as transportation is the major
cost factor.
2) Composting brings value to all those materials which are not consumed, fed or burned.
3) Possible products to be used for composting in Moldova: All kind of straws, manures,
by-products of industrial processing (fruits, vegetables, wine-making, sugar produc-
tion), wood, twigs, garden waste, food waste, hay, grass, Lucerne (both fresh or dried).
4) Combination of products with a different C/N ratio with the goal to reach an overall C/N
ratio of around 30: At this level the compost is stable and can be stored without losing
quality (For example: Manure has a C/N ratio of 10 and straw of 80).
5) The temperature in the compost must reach a minimum of 60°C for a week in order to
kill all weed seeds and eliminate residues of possible pesticides.
6) The composting process must be controlled by monitoring the temperature with a stitch
thermometer and verifying the decomposition activity with a CO2 meter.

2.2.2 Necessary machinery

Only if mechanised to a maximum, composting is a real option for the cost-effective provision
of nutrients to agriculture and horticulture. Manual work needs to me mechanised and trans-
porting of material for composting over distances of more than 20 km should be avoided. Ra-
ther than specialised machinery (such as the compost turner or the orchard compost spreader)
being underused, a service system needs to be instigated where specialised machinery works
on different farms situated in neighbouring districts. Such a system can best be initiated by the
off-taker in a contract farming system. The following machinery is needed, while the three last
ones could belong to a service provider working with a number of farms:
1) Machinery to deposit material in rows (e.g. tractor with front loader or silage trailer)
2) When using wood, for example twigs, maize plants without cob or other long material,
a chopper is needed to cut the material for composting into pieces of max. 12 mm
3) Compost turner to mix and turn the compost in each row, firstly each day and after the
first 7 days once per week (photo below)
4) Tractor to pull the compost turner with a minimum of 80 hp and a turtle gear
5) Spreader for spreading the ready compost; for spreading of compost under trees and
not between trees, the spreader needs to have a special provision (photo below)

10
Equipment needed for composting

Compost turner (Compost Systems, Austria) Orchard compost spreader (Agristaal, South Africa)
Picture: Christoph Arndt Picture: Agristaal

2.2.3 Cost calculations

The below calculation is inspired by a compost pilot trial carried out in November 2019 by the
organic walnut producer Fernuci in Ciuciulea, Glodeni District of Moldova. It was coached by
Mr. Henk de Lange, Consultant to the EIB Fruit Garden of Moldova project. In the trial, compost
was produced with about 70% old sheep dung (0.5% N in DM) which was freely available in
Ciuciulea, 10% own Lucerne hay (2.5% N in DM) and 20% agro-industrial residues (0.3% N in
DM) from nearby districts which were given away with a symbolic price, but attracted transport
costs.
Fixed costs: In our investment cost calculations, the annual machinery costs for making and
spreading of compost are made up of:
‐ Annual depreciation costs (a percentage of the replacement value, whereby the replace-
ment value is the difference between purchase price and the remaining value)
‐ Annual interest costs (based on 3.5% annual interest rate for the purchase price – which
is the normal rate of EIB-financed Fruit-Garden-of-Moldova loans – and presented as an
annual average of 50%, since the principal reduces from 100% to 0% over the course of
the repayment period)
‐ Annual maintenance costs (based on an assumed percentage of the replacement value)

11
Table 4: Annual compost machinery and equipment costs
Machinery, Purchase Replace- Remain- Depre- Depre- Interest Interest Mainte- Mainte-
Equipment price ment value ing value ciation ciation (%) (EUR) nance nance
(EUR) (EUR) (EUR) (%) (EUR) (%) (EUR)

Tractor with front 21 000 20 000 1 000 8 1 600 3.5 368 3 600
loader (second hand)
Chopper (second 6 250 6 000 250 10 600 3.5 109 2 120
hand)

Compost turner CMC 26 000 25 000 1 000 10 2 500 3.5 455 2 500
300 (new)

Compost cloth 3 000 3 000 0 10 300 3.5 53

500x4m, 1.5 EUR/m²

Compost spreader 14 500 14 000 500 10 1 400 3.5 254 4 560

(new)

TOTAL (EUR) 6 400 1.238 1 780

GRAND TOTAL (EUR) 9 418

It is assumed that in average 1 ton of rough products will make 560 kg of ready compost. The
annual compost machinery costs per ton of compost depend on the amount of compost pre-
pared. In the pilot carried out by Fernuci in Ciuciulea, the above-listed composting machinery
produced about 700 t of compost over one month from about 1250 t of raw materials (500 m
windrows with a cross-section area of 2 m²). During the entire year, farmers investing into
composting machinery would make a minimum of 5,000 t of compost per year while compost-
making enterprises could produce up to 10,000 t per year with the same machinery. The ca-
pacity of the compost turner, for example, is huge: It could theoretically turn 1000 tons in one
hour.
The annual machinery costs would therefore be:
 9.42 EUR/t for 1,000 t per year
 1.88 EUR/t for 5,000 t per year
 0.94 EUR/t for 10,000 t per year

Variable costs: It is realistic to assume that the material to be composted can be acquired
mainly free of charge, and only transportation costs must be considered. The average transport
distances should not be more than 20 km (40 km there and back). Transportation costs are
1.20 EUR/km x 40 km = 48 EUR per 25 tons of material equalling to about 2 EUR/ton. For
Lucerne, however, which is grown by the producer, the possible sales price needs to be used
as it could also be sold at 97 EUR/ton ex farm, non-baled (opportunity costs).

12
Table 5: Operational costs for the production of compost from 1250 t fresh material
Activity Quantity Unit Cost per unit Total costs
(EUR) (EUR)

Collecting rough materials not available in the village 250 tons 2 500
(about 20% of compost ingredients)
Market value of Lucerne hay 125 tons 97 12 179
(about 10% of compost ingredients)
Preparing windrow of 500 m 80 ltr 0,9 72
(fuel costs for 8 h tractor work with 10 ltr./h consumption)
Turning the compost 15 times 180 ltr 0,9 162
(12 ltr. of fuel per turning)
Spreading the compost 1000 tons 2 2 000
(cost per ton)
TOTAL 14 913

PER TON OF COMPOST (Conversion Rate. 56%) 21.30

2.2.4 Compost value

The production costs of compost (21.30 EUR/ton) need to be compared to the benefits arising
from compost use. Compost can play a significant role in certified organic agriculture as other
permitted sources of nitrogen, phosphorous and potassium usually come at a high cost and
normally attract import duties and import VAT. As conventional farmers have cheaper access
to plant nutrients, the value of compost is calculated separately for conventional and certified
organic production.
Table 6: Compost value in organic and conventional production per ton of compost
Nutrient / Ingredient Average Unit Average Average Compost Compost
amount price in price in value per ton value per ton
organic conventional in organic in convent.
production production production production
(EUR) (EUR) (EUR) (EUR)

Dry matter 700 kg

Effective Organic Matter* 200 kg 0,05 0,05 10,00 10,00

Nitrogen (N) 7 kg 2,00 0,80 14,00 5,60

Phosphate (P2O5) 8 kg 1,60 0,80 12,80 6,40

Potassium (K2O) 20 kg 1,60 0,80 32,00 16,00

Calcium (CaO) 30 kg 0,25 0,25 7,50 7,50

Magnesium (MgO) 12 kg 0,30 0,30 3,60 3,60

Sulphur (SO3) 5 kg 0,41 0,35 2,05 1,75

TOTAL   81,95 50,85

*Most of the organic material in compost is converted into carbon dioxide and water in the soil in the first
year. The remaining organic material is called effective organic matter.

13
The table clearly shows that compost has more value in organic production, mainly because
of the high price of such mineral potassium fertilisers as Patentkali that are permitted in organic
agriculture. As the level of nitrogen in compost is not very high, there are cheaper ways of
adding nitrogen into the nutrient cycle, e.g. by using Lucerne for green manuring as well as
applying pelletised Lucerne directly to the crop. Alternatively, the Lucerne share in the com-
posting mixture (10% in the above example) could be increased to even 50%.
The net value (value minus costs) at 3 levels of amount of compost produced per year and
either used in organic or conventional agriculture is shown below:

Table 7: Compost value in organic and conventional production per ton of compost
Amount of Fixed Variable Value in Value in Net value Net value
ready compost costs costs organic conv. in organic in conv.
system system system system
(t) (EUR/t) (EUR/t) (EUR/t) (EUR/t) (EUR/t) (EUR/t)

1000 9,42 21,30 81,95 50,85 51,23 20,13

5000 1,88 21,30 81,95 50,85 58,76 27,66

10.000 0,94 21,30 81,95 50,85 59,70 28,60

As rule-of-thumb figure, it can be assumed that compost produced at a larger scale has a value
of about 30 EUR/t in conventional and 60 EUR/t in organic agriculture. Composting has added
value to Lucerne: The 125 t of Lucerne hay could have been sold for about 12,000 EUR. How-
ever, they contributed to the production of 700 t of compost with a value of 33,000 EUR for the
organic producer.
However, if the nitrogen level of the organic material to be composted has sufficient nitrogen
and sufficient structure, then Lucerne would be too expensive for composting. It needs to be
assessed whether nitrogen cannot be acquired from cattle farms (liquid manure) at lower costs.
It must also be evaluated whether there is a cheaper source available for structure such as
straw, straw manure, reeds and chopped corn plants without cob. However, it would be again
unwise to harvest straw for the compost as it should rather be left in the field as a source of
organic matter.

14
 2.3 Lucerne for direct fertiliser use
The nitrogen content of Lucerne (minimum 25 kg/t DM) was already shown above. Early cuts
at budding even reach 35 kg nitrogen per ton of DM. Farmers could use chopped Lucerne
either composted, fresh, ensilaged and or pressed to pellets to fertilise own high-value crops
such as organic fruits, nuts and vegetables. This system is called “cut and carry” and is getting
more and more accepted by organic farmers in Central Europe (Germany, Austria, Switzer-
land) who do not have livestock.
The cheapest way is to use fresh, chopped Lucerne. It can be used as mulch to reduce weeds
and is applied by a normal compost spreader (see Chapter 2.2.2). This works well if the bio-
mass is spread directly after cutting. Usually a mulch layer of about 5 cm is produced to reduce
weeds. The C/N ratio should be up to 15, i.e. cuts of young plants should best be used.
Lucerne could also be ensilaged before applying as a fertiliser. This helps to store the biomass
and apply it when needed. However, experience shows that Lucerne silage must be incorpo-
rated into the soil at least one week before sowing or planting because of its negative effect
on germination. The silage should have a C/N ratio of maximum 15. Experience shows that if
the C/N ratio is 20 and more, the nitrogen will be immobilised and no nitrogen will be available
for the crop. Lucerne is not easy to ensilage and must be wilted on the field from less than 20%
to about 35-40% DM before making silage. The crop can be ensilaged in round bales, which,
however, need 8 layers of plastic foil because of the risk of Lucerne stalks puncturing the foil.
More efficient would be to produce silage in foil tubes, for example with the silage bagging
system of Feedtuber.
Making Lucerne silage with the silage bagging system of Feedtuber

Picture: Feedtuber

Another way to use Lucerne for fertilisation is with pellets. Today they are mostly used in or-
ganic greenhouses and have the advantage that they can be stored and used whenever there
is need. Organic farms in Central Europe have also started to use them in high-value field
crops such as oil seeds. Pelletising will be discussed in the next Chapter. Pellets are produced
with high pressure requiring considerable energy. This makes them expensive. In Romania,
conventional Lucerne pellets are sold for about 250 EUR/t and in Central Europe for
300 EUR/t, and organic Lucerne pellets even for between 400 and 550 EUR/t. The opportunity
costs for using Lucerne pellets for fertilising are, therefore, high as the fertilising value is only
134 EUR/t and 74 EUR/t (organic, conventional, respectively, see Table 3). Pellets would
therefore probably mostly be made for export with a fall-back option to be used for fertilising.
On the other side, making Lucerne pellets may be much cheaper than to import organic ferti-
lisers from abroad, and next to the nitrogen and potassium, Lucerne pellets have a high level
of organic matter.
15
 2.4 Pelletising or pressing Lucerne for export
2.4.1 Market considerations
Possible destinations for Lucerne bales and pellets are the Middle East and Central Europe
(Germany, Austria, Switzerland). Transport to the Middle East would be by ship from Giur-
giulesti via Istanbul, and to Central Europe by inland vessel up the Danube River.
The Middle East would be a possible market for conventional hay and pellets. In this market,
a Moldovan Lucerne exporter would have to compete with large Ukrainian companies like Al-
falfa Group, Spanish companies like Literana de Forrajes and US companies like Anderson
Hay & Grain. The US is the Number One producer of Lucerne hay worldwide traditionally sup-
plying China and Saudi Arabia. Saudi Arabia is the largest importer in the Middle East since
the production of forage crops was banned in 2019 to conserve the country’s ground water
resources. The market is growing steeply and Saudi dairy producers are trying to diversify the
supplier market.
The Central European market (Germany, Austria, Switzerland) is supplied by large French
cooperatives in North-East of France such as Désialis (producing 700,000 t of Lucerne hay in
25 dehydration sites) and Luzeal as well as companies such as Ets. DIÉ in South-East of
France. With 390 EUR/ha of EU subsidies for Lucerne, the crop is attractive for farmers and
there is currently sufficient production in the market. A Moldovan exporter would probably only
have a chance to compete in the organic segment and only if the product could be readily
produced on the field without the need of investing into a large dehydration plant. As traded
Lucerne hay has a DM concentration of 90% which is normally only achieved in dehydration
plants, the most likely option for Moldova to compete with French production is in-the-field
pelletising with a mobile pelletiser.
Organic Lucerne pellets have recently become very prominent as feed for leisure horses. Doz-
ens of companies are supplying Lucerne pellets and cubes for this market. The target group
(horse owners) understands the concept of certified organic production and is ready to pay a
higher price. Ex-farm prices for organic Lucerne pellets are usually between 400 and
550 EUR/t while the end consumer may pay 1000 EUR/t.
Lucerne pellets are also used as feed for dairy, beef, goats, sheep, chicken, and rabbits. In
ruminant nutrition, the advantage of Lucerne pellets and hay to grass pellets and hay is the
high level of nitrogen available to rumen bacteria in addition to the high protein content availa-
ble after passing through the forestomaches. Dairy and beef producers also appreciate the
possibilities of mechanisation in storage and feeding that come with pellets.

Table 8: Lucerne hay and pellet prices in Central Europe (purchase price of fodder trade
companies, delivered, net)

Lucerne hay in big bales Lucerne pellets

(EUR/t) (EUR/t)

Organic 300 500

Conventional 180 300

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 2.4.2 Necessary machinery
In order to produce Lucerne pellets or Lucerne bales, three types of machines are needed: A
mower, a merger and either a press or a pelletiser. If handled badly, losses of dried leaf bio-
mass can become very large during wilting in the field. Losses are reduced with appropriate
machinery and correct timing. The ideal time for cutting is the beginning of flowering (with about
30% of plants in bloom) and a conditioner should be used with the mower.5 Most losses can
occur at merging. Losses are lowest when wheel rakes are used (low investment, appropriate
for small farms) and mergers that have a conveyor belt to transport the crop (high investment,
appropriate for service companies). Merging should be done in the very early hours of the day
when there is still morning dew in the field. Plants can still have some moisture when being
merged as they will continue to dry on the swath.

Wheel rakes of Italian manufacturers Tonutti and Enorossi

Pictures: Tonutti

All large Lucerne operations in France use the mergers with conveyor belt from ROC

Pictures: ROC

5
Mowing after 6pm helps to preserve bees.
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Bales are either produced for own use or sale to neighbouring livestock farmers or for export.
For own use it is best to press bales with still some 15-20% moisture to reduce leaf losses.
These bales are stored in a barn on pallets with open doors on two sides to let them dry up
further (temperature has to be controlled every half day). They are produced with as little pres-
sure as possible with round bales presses with a variable (not a fixed) baling chamber. Press-
ing is done when the sun is not too hot, e.g. in the evening and at night. If the moisture is higher
than 20%, the Lucerne bale must be wrapped (8 layers, cost in average 2.5 EUR/bail). Special
loading equipment is needed for wrapped bails not to destroy the plastic.
In contrast, pressing for export must result in a bale with 10% moisture only, and it is not likely
that this can be achieved in Moldova without artificial drying in a dehydration plant. The French
Rumiluz bales which are made in a dehydration plant (using hot air of 600°C) serve as a
benchmark. They have 88-90% DM and a raw protein content of 130-150 g/kg DM. Their pro-
duction from cutting to pressing can be seen in this video:
https://www.youtube.com/watch?v=Yw5AusuCKHk Rumiluz bale of 370 kg
If bales are made in Moldova for export, they should be made with and Lucerne pellets
a bale press that can produce different sizes corresponding to the
means of transport: Truck, vessel, or container. If they are made
with the measures 120 x 110 x 70 cm, 60 bales could fit into a 40’
container with a net weight of 16 t.
For pelletising, on the other side, 20% of moisture in the Lucerne
hay still seem to be manageable. Not only are prices higher for
Lucerne pellets than Lucerne hay (Table 8), they also incur lower
transport costs due to their higher density (600-650 kg/m³ com-
pared to 280-390 kg/m³ for Lucerne hay). A 40’ container could be
filled to its maximum allowed weight.
The manufacturer for forage crop harvesting machines Krone has
recently released the Premos 5000 which has already been suc-
cessfully tested in Austria and Switzerland. It is not yet available
for the Moldovan market, but could be a worthwhile investment for
an off-taker who wants to stimulate Lucerne production among
contract farmers while at the same time serving the organic market Pictures: Désialis
in Central Europe. However, Krone first needs to release more test
results before economic calculations can be made such as the fuel
needs and maintenance cost per ton of pellets as well as the de-
preciation period for an investment of estimated 250,000 EUR.
The mobile pelletiser Premos 5000

https://www.youtube.com/watch?v=gOSqMJ9JD9E Pictures: Krone

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The below table shows that the investments for a small bale press are worthwhile already for
the production of 100 t of bales per year; however, investments into a round bale press, a large
square bale press and a pelletiser are worthwhile only for the production of larger quantities
(500-1000 t of bales per year). For an in depth analysis, however, also the costs of the tractor,
of mowing and merging equipment as well as their operational costs would have to be consid-
ered.

Table 9: Machinery costs for Lucerne hay pressing

Press Horse Purchase Estimated Esti- Costs Costs Costs Value of or-
power price depreciation, mated if 100 t if 500 t if 1000 t ganic final
needed (EUR) interest and variable pro- pro- pro- product ex
maintenance costs duced duced duced farm
(EUR/year) (EUR/t) (EUR/t) (EUR/t) (EUR/t)) (EUR/t)

Small bale press 70 15.000 1.663 21 37 24 22 125

(15-25 kg)

Large bale press 120 95.000 12.713 14 141 39 26 140*

(350-400 kg)

Round bale press 175 50.000 6.725 14 81 28 21 125

(200-300 kg)

Wrapped round 120 45.000 6.725 20 87 33 27 125

bale press (250-
300 kg)

Mobile 400 250.000 35.175 10 362 80 45 380**

pelletiser

*160 EUR/t transport and handling costs (farm gate to place of sale in Central Europe) were assumed.
**120 EUR/t transport and handling costs (farm gate to place of sale in Central Europe) were assumed
because of higher density.

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 2.5 Lucerne in a conversion system
A very interesting economic value of Lu-
cerne could lie in the organisation of the
conversion process from conventional to
organic farming. The 3-year conversion
period in which organic practices need to
be applied on a piece of land, but its prod-
ucts are still sold at conventional prices
makes many farmers who are willing to
convert a part or all their production worry
about how to cope financially. In this 3-
year period, the production of Lucerne
could be the answer.
Lucerne could be sown in late summer of
Year 0 or in spring of Year 1 of conver-
sion, and the cuts in the Years 1, 2 and 3
could be used to enrich compost which
can be stored to the autumn of Year 3 or
spring of Year 4 when it is applied as fer-
tiliser to high value crops (see Chapter
2.2). The added value could be higher
than selling the hay as fodder at a con-
ventional price. As shown in Chapter
2.1.4, the fertilising value of Lucerne in or-
ganic farming is 134 EUR/t, while the
price that could be obtained for hay locally Picture: Christoph Arndt
will probably not exceed 128 EUR/t DM.
If a farmer already practices certified organic production on some fields (“parallel production”),
he/she could immediately use the ready compost enriched with Lucerne from conversion on
those certified organic fields. This example shows that it might be worthwhile converting to
organic farming progressively.
When mobile pelletising of Lucerne hay becomes possible in Moldova (see Chapter 2.4), Lu-
cerne pellets made from in-conversion hay can be used as a valuable organic fertiliser in or-
ganic high-value crops – either right away or after some years of storage. Lucerne pellets are
easy to handle and can be spread with the same equipment that is used for mineral fertiliser.
To verify the effect of Lucerne pellets in high value crops (vegetables, nuts, stone fruits, etc.),
control plots should be installed to measure the difference with and without Lucerne pellets.
Lucerne pellets from in-conversion hay could also be sold to Central Europe at a conventional
price of about 300 EUR/t. Assuming production costs of 663 EUR/ha (Chapter 2.1.2),
100 EUR/t for harvesting and pelletising and 120 EUR/t for handling and transportation, the
farmer can still make a net revenue of 225 EUR/ha (10 t/ha of DM and pellets at 90% DM).

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3. CONCLUSIONS AND RECOMMENDATIONS

1. This study shows that growing Lucerne which is so important for sustainable farming and
stable yields in organic agriculture can be profitable for both sides, the off-taker (e.g.
Prograin Organic) and his/her contract farmer.
2. Only for conventional farmers who produce Lucerne at lower costs than organic growers,
it could be worthwhile to sell baled Lucerne hay to small livestock producers (465 EUR/ha
net revenue).
3. For organic farmers it is rather advisable to use chopped Lucerne either fresh, ensilaged
and or composted to fertilise own high-value crops such as organic fruits, nuts and vege-
tables (fertilising value of 134 EUR/t compared to the value of small bales for sale of
128 EUR/t DM).
4. Alternatively, they could start a collaboration with dairy/beef farmers (if close by) and pro-
vide them with a solution for manure disposal. Such manure could form 20-50% of the
ingredients needed to produce a good compost. In such a cooperation, the farmer could
also sell Lucerne hay/pellets to the dairy/beef producer on a contract base.
5. In an optimal situation, the organic agricultural/horticultural producer has a number of
available fertilising options at hand: Fresh or ensilaged Lucerne biomass, compost, pellets
as well as cattle liquid manure. In this way the short-term and long-term needs of crop
nutrition and soil life stimulation can be met.
6. Prices of 60 EUR/t DM for unharvested conventional Lucerne hay and 80 EUR/t DM for
unharvested certified organic Lucerne hay seem to generate a win-win for both sides, off-
taker and farmer.
7. Off-takers like Prograin Organic could promote compost-making by investing into special-
ised machinery such as a compost turner and a compost spreader that would provide paid
services for contract farmers (costs deductible at harvest).
8. As rule-of-thumb figure, it can be assumed that compost produced at a larger scale has a
net value of about 30 EUR/t in conventional and 60 EUR/t in organic agriculture.
9. Off-takers like Prograin Organic could best add value to organic Lucerne via mobile pellet-
ising (though a useful machine – the Krone Premos 5000 – is not yet available) with or-
ganic pellets exported to Central Europe with a fall-back option for the pellets to be used
as fertiliser by organic farms in Moldova. Pellets allow for in-the-field production without
the need of investing into a large dehydration plant. In addition, pellets have a twice higher
density than hay making transportation over long distances worthwhile.
10. An interesting economic value of Lucerne could also lie in the organisation of the conver-
sion process from conventional to organic farming whereby in-conversion hay is either
composted or applied directly (fresh, ensilaged or as pellets) to organic certified fields (“cut
and carry”).

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