The experts forecast a raise by 4% in agriculture for current year, although the official forecasting is several times bigger. The economic expert, Viorel Chivriga declared for Info-Prim Neo, that cereals from the first group have past successfully winter season and there is good chances for a rich crop this year. Also, optimistic forecasting has been made for cereals from the second group, in particular - maize.

Corresponding to Viorel Chivriga, economic growth in agriculture will be based on the vegetable sector. Moreover, optimistic forecasting is supported by the growth in prices on cereals on both local and regional markets. Prices on cereals have already increased and will continue to be high throughout this year, said Chivriga.

Also optimistic forecasting exists for multianual crops, in particular, the wineries. The situation is considered relatively good also regarding the fruit-bearing cultures, however less for the apricot sector, which flowers have frozen this spring.

Simultaneously, for the second year, technical cultures, such as rape, soybean, and sunflower will considerably influence the economic growth. Large surfaces of sunflower will continue to be planted simply because of its high demand on the market, said Chivriga.

Regarding the sugar beet, the expert considers that there are high risks on the local and regional markets, dictated by the very low prices and huge stocks of staple and outputs.

Finally, the animal sector, which is heavily at stake regarding this year’s economic growth, there could be a certain increase in the volume of production comparing to the previous year. However, considerable growth is not expected this year, says the expert. This forecast is justified by important problems that the sector faces: decrease in number of animals , with the exception of pork, increase in morbidity due to some maladies and unqualified reproductive material. Also, there is still a lower level of production of cultures for fodder; there is a lack of export markets and a high concentration of pork production in farming households.

The level of humidity in soil is very low

The short term risks are still maintaining, says the expert. It must be taken into consideration the risks that are connected with the weather, especially the drought. Moreover, currently, the level of humidity in soil is already very low. Also, the risks that are connected with the incapacity of commercializing the production are linked with the biggest problem of the agricultural sector for the second year in a row - the lack of foreign markets. The fact that the exports were unblocked for several industrial units – represents a small victory. This is because the negative balance that exists in trade with animal products is constant for several years, and the changes will appear not earlier than in 2 or 3 years.

Also, the cancellation of the embargo for a month to several vegetable products can not be considered a success, but only a small element of negotiation for a short term. A dangerous element is still the monopolization of export of some products only by some several manufactures, such as: three companies of meat production, 10 wine-producing factories (in case if 10 companies that are under close watch by the experts from Rospotrebnodzor will be accepted for export to Russia), also the idea of export of wine in bulk in Belarus by a single Moldo-Belorusian company.

Last year the largest growth was registered in the sugar production branch

The largest growth in the volume of agriculture production last year, according to the official data, was registered in the sugar sector (by 16%), production of fodder (by 13%), and meat products (by 7%), bread products (by 5%), milk industry (by 5%), dairy-products (by 3%).

As a whole, agricultural production obtained in all categories in 2006 reached around 13,7 billion Lei, which is only 95,4% (in comparable prices) comparing to the previous year. Official statistic data show that the decrease in agricultural production was determined by the decrease in vegetable production by 8,5%. 

This year the Ministry of Agriculture and Food Industry of Moldova is preparing to propose for approval to the Parliament several Laws with major importance for the agro-alimentary complex: Land Code, Soil Law, the Law on veterinary services and the Law on water, as well as continuation of implementation of the Plan regarding animal health control and food safety.

Also, it is planned to implement the Laws regarding the organization of the agro markets and cereals; continuation of the activity that are related to the harmonization of the legislature and normative acts regarding storage of cereals, continuation of activities that are connected with producing and commercialization of the agricultural products for export; elaboration of a new concept of subvention of agro producers for stimulation of investment; set up of an Agency of Payment aiming to use efficiently public finances.