Moldovan gold from the roadside

[Info-Prim Neo economic analysis] After the EU markets opened, the demand for walnuts increased quickly and the Moldovans realized they can make money by selling walnut kernel abroad. Mihail Suvac, head of the Agriculture Ministry’s Division of Market Policy on Products of Animal Origin, considers that most of the producers that ventured into planting large areas of land with walnut trees took into account mainly the easy side of such a business – it is easier to cultivate walnut trees than other types of fruit trees. “But it is much more difficult to harvest the kernel as the walnuts must be shelled, washed and dried. Technologies must be applied to dry the walnuts. The producers should reach agreements and cooperate between them if they want their businesses to be more successful,” said the division head. The normative framework for such kinds of economic activities includes the Agriculture Ministry’s National Walnut Development Program until 2020, which allows the Moldovans to start a business by producing walnut kernel. “There was approved the Law on Walnut Trees and a Government Decision on the initial subsidization of producers of walnut saplings and of those who intended to set up a walnut tree planting business. Those who produce saplings are no more subsidized as the supply outstripped the demand. The persons who plant walnut trees receive a subsidy of 10,000 per planted hectare and are exempted from paying the land tax until the trees start to yield fruit,” said Mihail Suvac. He considers that the people do not appreciate the support provided by the state. “When they face problems because they incorrectly manage the business, they blame the Ministry for not warning them. The state must ensure appropriate legislation so that the people develop their businesses safely, but should not provide them with everything they need,” said Mihail Suvac. Contacted by Info-Prim Neo, Vadim Machidon, who has a walnut plantation of 4.75 hectares in Japca, Floresti, confirmed that he did not estimate all the future costs in his business plan. “We do not yet have a mentality of businessmen. The people are not ready to count every penny that must be invested. I determined what I will need when the trees start to bear fruit, but did not take account of all the elements of the process. My orchard is only a year. I think I will manage to recoup a part of the investments in 4-5 years and will then earmark money for collecting and selling the harvest,” said Vadim Machidon. He also said that the 10,000 lei offered by the state in assistance does not fully cover the costs incurred when planting tress. “100 trees are planted on a hectare of land. A sapling costs more than 100 lei and we thus need more than 10,000 lei to buy saplings. But the state helps us how it can. We are aware that we must invest our own money when we start a business,” said the young businessman. Mihai Conoval has a walnut orchard of 50 hectares in Telenesti district, which was planted four years ago. This year he projects to plant trees on another 20 hectares. He said he decided to set up a walnut production business after he read the Law on Walnut Trees and understood what he must do. “I started to produce saplings and then decided to plant an orchard. The state covered practically all the planting-related costs. Now I earn money from selling saplings,” said Mihai Conoval. He stated that the demand is on the rise and he developed his business during the last two years. He said he can produce up to 120,000 saplings, but the demand exceeds 200,000. “I’m phoned by Moldovans working in Italy, the Netherlands and Spain and asked about the business. The people understand that they cannot earn as much money by running stores and cafes. The sorts of walnut trees grown in Moldova are among the best in the world. There are persons in Romania and Ukraine who want to buy walnut saplings from Moldova because the harvest in our country is better,” said Mihai Conoval. According to him, some of those who plant walnut trees do not correctly and sufficiently inform themselves about how these trees must be grown and thus make mistakes. The major goals of the National Walnut Development Program until 2020 are to extend the walnut plantations, modernize the applied technology and increase production, improve the harvesting process and ensure the export of competitive, high value-added products. Under the program, walnut trees will be planted on 1,000 hectares of land a year. The program has been so far fulfilled. The areas planted with walnuts in 2010 totaled 9,400 hectares, as opposed to 8,100 in 2009. The orchards planted in 2003, when the intensive planting of walnut trees started, began to yield fruit and revenues to the producers,” said Mihail Suvac. In another development, he said the walnut trees planted by the roadside in Moldova belong to the Ministry of Transport and Road Infrastructure. They were planted with the aim of cleaning the air and making the places more beautiful, but the people gather walnuts from them. Mihail Suvac confirmed that the walnuts collected from these trees are not toxic as the lead they absorb is deposited in the bark and does not get to the kernel. Mihail Suvac also said that they started to cultivate almond in Moldova during the last few years. The almonds are more expensive and the trees start to yield fruit quicker that the walnuts. “The walnut businesses are the most profitable, but one should know how to efficiently manage the financial resources and plan thoroughly everything,” he said. The persons who want to start walnut production businesses can find information about the program and subsidization on the website of the Payment and Intervention Agency in Agriculture of the Ministry of Agriculture. Experts say the walnut kernel is the ‘Moldovan gold’. They say the walnuts, as the genuine gold, begin to shine only as a result of enormous, physical and intellectual work. [Mariana Galben, Info-Prim Neo]