FAO and the Republic of Moldova act together to counter a potential food crisis
Chişinău, Republic of Moldova – The Food and Agriculture Organization of the United Nations (FAO) is calling attention to the high level of exposure that the Republic of Moldova has to the ongoing regional and global crisis. Driven by the conflict in neighbouring Ukraine, severe drought and the lingering impacts of the COVID-19 pandemic, the country is currently experiencing multiple shocks that can result in significant food insecurity, particularly among the rural population. Further support is needed to limit the ramifications of these shocks.
On 16 August, Vladimir Bolea, Minister of Agriculture and Food Industry of the Republic of Moldova, and Raimund Jehle, FAO Representative in the Republic of Moldova, discussed both the urgent and medium- to long-term needs of the country’s agriculture sector. Response to the looming crisis will come from funding of USD 1.5 million from FAO and the Austrian Development Agency. FAO agreed to conduct a damage and loss assessment on the drought impact. It will also provide relief with both animal feed and seeds to the most vulnerable farmers.
Although the ripple effects of the war in Ukraine are affecting many economies across the globe, the Republic of Moldova is particularly affected due to its close proximity to the hostilities, which is severely constraining the functioning of the country’s main productive sectors, such as agriculture, with small and family farmers particularly vulnerable. Agriculture accounts for 12 percent of the country’s Gross Domestic Product (GDP), 45 percent of total exports and employs over one quarter of the country’s population. The livelihoods and food security of smallholder farmers, who represent 98 percent of all agricultural producers and generate over 62 percent of the total volume of agricultural produce in the country, are particularly vulnerable to the current crisis. With a very high dependence on import-export markets, and with both Ukraine and the Russian Federation being key trading partners, major economic transit routes and supply chains for many essential commodities are currently inaccessible. The country depends on imports of agricultural inputs such as seeds, fertilizer and plant protection products, Prices of these inputs have skyrocketed since the onset of the conflict and are severely hindering the functioning, productivity and competitiveness of the country’s agriculture sector. Combined with the drastic increase in energy prices, this has resulted in the Republic of Moldova currently experiencing one of the highest rates of food price inflation in Europe, hitting a record high of almost 36 percent in July, according to the National Bureau Statistics.
In addition to the effects of the neighbouring conflict, extreme dry weather conditions have resulted in a drought across many parts of the country that is expected to have a significant impact on agricultural production levels. The Ministry of Agriculture and Food Industry anticipates substantial losses in the production of key crops including wheat (45-47 percent), maize (70 percent), and sunflower (60-70 percent) vis-à-vis harvests in 2021. As a result, Moldovan households, particularly rural ones, will be increasingly unable to afford key food commodities.
During their meeting, Bolea and Jehle also discussed the transformation of the sector for which further support is required in the area of extension and digitalization, strengthening the local competitiveness of farmers and investing in agro-industry, innovation to respond to climate change, and policy adjustments.
“Sustainable food systems are a key driver of economic development and contribute to greening the economy,” Jehle highlighted.
FAO will further support the sector and assist the Ministry in coordinating efforts for both short and long term support in collaboration with other international stakeholders.
