Fragmented land, limited access to finance and limited knowledge among small-scale food producers are among the main constraints to growth highlighted in the FAO report Republic of Moldova Value Chain Gap Analysis, published recently. One of the study’s main conclusions is that smallholders from the Republic of Moldova could form associations and service cooperatives to improve marketing of their products and gain access to international markets.
The solution might look simple, but many barriers exist, including the distance between farms of a similar type, insufficient awareness among farmers about the benefits of cooperation, and lack of access among farmers to market information.
The study also offers suggestions regarding the unification and simplification of laws, especially those covering cooperatives and land fragmentation, and recommends that the government consider providing subsidies to help lower the interest paid by farmers on loans.
Farmers also would benefit from improved access to long-term investment loans, the report states.
“Investment loans in the Republic of Moldova are usually for a period of three to five years, which is not enough for funding perennial plantations or post-harvest equipment such as cold storage facilities,” said co-author Pavel Kiparisov.
The paper recommends the simplification of the procedure for applying for government subsidies and suggests that those subsidies be given to farmers before they have to invest their own money.
In its review of the plum and berry value chains, the study highlights the paramount importance of nearby processing facilities and the need for additional facilities to conduct genetic testing of plant material to support breed improvement.
