Neither producers nor consumers gain as a result of higher agricultural output

Even if agricultural production increased by about 20% in the first nine months of this year, producers gained only quantitatively, not yet in terms of money. UniAgroProtect chairman Alexandru Slusari has told IPN that the rise in agricultural output didn’t lead to a reduction in the prices of agrifood products for end users, as it is normal to happen. “I see the prices for agricultural producers decreased, but the prices for consumers didn’t change, which is the whole profit margin is collected by intermediaries,” stated Alexandru Slusari.

According to him, there was drought last year and the crops of the second group, like sunflower, corn, soybean and beet, were affected a lot. The weather conditions this year were better. The significant precipitation in spring allowed the farmers to collect a better harvest than last year.

Alexandru Slusari said the rise in agricultural production was due exclusively to the weather conditions, not yet to the state policies, which remain unchanged. No progress was witnessed as regards agricultural policies during the first ten months of this year. “The authorities in 2016 did nothing significant in the areas of irrigation, access to financing, fiscal legislation. The increase in agricultural production depends on the weather, not on the changes in agricultural policies,” said the chairman of the National Agricultural Producers Association.

He noted that the higher output led to a decrease in the prices of wheat, corn, barley and fruit. If there had been veritable market economy in Moldova and the state policies had been viable, this growth should have been felt by consumers.

According to the National Bureau of Statistics, the almost 20% rise in agricultural production was due to an increase of 28% in vegetal production and of about 2% in animal production by

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