Some 99% of the ethyl alcohol produced in Moldova is exported to countries in Europe and Asia. The export of ethanol from 2021 to 2023 amounted to over 121 million liters and over 60 thousand tons of DDGS (Distiller’s Dried Grains with Solubles), which is equivalent to almost €111 million, IPN reports, with reference to Iurie Rija, executive director of the Association of Exporters and Importers of Agricultural and Cereal Products “Agrocereale”.
Not all the volume of DDGS was exported. Some factories keep it and use it for biogas production, thus increasing the profitability of production due to energy efficiency and autonomy. Taking into account the volume of DDGS that could have been exported instead of being used, the export would increase in quantity by at least 20,500 tonnes, which is equivalent to €5.9 million.
Thus, in the production of ethanol and the sale of its used residues, the total export amounts to €116.8 million. According to Iurie Rija, this indicator is very good because high added value is generated during the production cycle. Farmers in rural areas benefit from being able to sell their produce domestically, saving on logistics and other export-related costs.
At state level, there is also a positive impact – the country exports products with significant added value. For example, for the production of exported ethanol, 327,000 tonnes of cereals are needed, which, recalculated in export prices for that period, would be worth €75.5 million for the national economy. Even the existing ethanol and DDGH export volume increases the accumulated export revenue, compared to the export of cereals, by €41.3 million.
Over the past year, ethanol exports decreased significantly - in 2023 by 31% compared to 2022 (from 46.2 million liters to 31.2 million liters). Iurie Rija noted that the added value not obtained from export is €62.1 million for three years.
He argued that rising energy costs have had a destructive impact on the entire industry. The predominant negative impact was generated by the cost of gas, which increased the cost of the finished product almost twofold. The period with high prices for energy resources had a destructive impact on the whole industry of the Republic of Moldova, and even if, at first glance, this is not immediately noticeable for agriculture, large producers, which are grain processors, weren’t able to fully cope with the increase in gas prices.
This negative impact was felt in the ethanol industry, by farmers and by the state itself, which lost a significant part of net exports and thus lost the necessary foreign exchange receipts from the sale of high value-added products.
