Old technology generates high prices in agriculture

The prices of agrifood products will remain high throughout the year, but agricultural producers’ revenues will not follow the same trend owing to the high production costs, predicted independent experts, quoted by Info-Prim Neo. Ana Popa, program director at the Independent Analytical Center “Expert-Grup”, said among the reasons for such a situation are the rise in oil prices, the fact that the agricultural activity in Moldova lasts for only several months a year, the low training level of the producers, and the lack of marketing knowledge. Ion Perju, vice director of the Agricultural Competitiveness and the Small and Medium-Sized Companies Project, said the high production costs in agriculture are due to the old technology applied. “The farmers use a large number of chemicals instead of buying fertilizers of a high quality,” said the expert. Doctor of Economy Victor Moroz, of the Institute of Economy, Finance and Statistics, considers that the use of outdate production technology, decreases labor productivity and negatively affects the competitiveness of the national agrifood products. The incomes of the agricultural producers are considerably diminished by the presence of numerous intermediaries in the production and sale process. “The Ministry of Agriculture and Food Industry takes steps to improve the norms governing the agricultural market so as to change the situation,” said Victor Moroz. The experts said the subsidization polices should be reviewed and efficient production should be stimulated.

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