What does this mean for Moldova’s agri-food sector?
Safety First
The European Union has embarked on the implementation of its global project—a free trade agreement with the MERCOSUR countries. One of the main risks of this initiative is whether the Latin American countries that make up the bloc will comply with European requirements for bio- and agri-food safety.
The EU certainly does not need these risks on a “second front”—from EU candidate countries. With this in mind, it can be argued that in Moldova’s agri-food sector, modernizing the system of state management (with an emphasis on monitoring and control) in this area is the top priority for any government looking ahead (until the next electoral cycle).
From this perspective, it is both symbolic and telling that, within the “Tofan government,” the head of the National Agency for Food Safety (ANSA), Radu Mustață, has been promoted to the rank of Minister of Agriculture and the Food Industry (MAIA). If the cabinet receives a mandate from parliament, the second most important step will be resolving ANSA’s “staffing issue”—in the context of the ministry-agency relationship.
It is also quite telling that the government’s work plan through 2029 includes the creation of a farmers’ registry, the modernization of the ACIS, LPIS, and IACS information systems, and, more broadly, the digitization of 80% of all public services for operators in the agri-food sector.
This is not just about “less bureaucracy”; it’s about greater transparency and oversight.
The EU’s Common Agricultural Policy: “What’s Yours Is Ours”
The government program also provides for preparing the agricultural sector for integration into the European Union’s Common Agricultural Policy (a new policy document currently being developed that will take effect in two years).
Again, at the institutional level, this means the accreditation of “technical agencies”—ANSA and AIPA—by the relevant EU organizations.
In terms of financial support—which is of the greatest interest to farmers—there will no longer be any clear-cut benefits. On the contrary, compensation for losses as a form of aid will be gradually phased out and provided only in exceptional cases.
An accelerated transition to European (essentially social) subsidies “per hectare of farmland”—aimed at maintaining an acceptable level of farmers’ incomes—will not happen for everyone all at once either.
However, climate resilience will effectively become mandatory for everyone—in the European Union, no one has yet canceled the “green transition” (and is unlikely to do so—it is a “pillar” of the EU’s policy).
Under the “Tofan government’s” program, support for producers’ incomes will be provided through investments in productivity improvements: water resource management (irrigation and aquaculture); preventive measures to reduce agricultural risks (insurance and diversification of crops); post-harvest infrastructure (processing, storage, and logistics); farmer cooperatives (that is, their integration into stable value chains—processing, export, and access to supermarket shelves).
All of this was, to a greater or lesser extent, on the agenda of the previous cabinet. It seems the only difference is that the emphasis will be strictly placed on the principle of “supporting only those who are efficient and have potential.”
As for the rest, those who cannot withstand the competition—“that’s the market, integrated with the EU market.”
Development of the Food Industry and Value-Added Growth
Significant emphasis is also placed on the development of the food industry, which is, in a sense, a new and positive direction.
The program provides for the phased development of three regional agri-food clusters to facilitate cooperation among agricultural producers, processors, export traders, and retailers.
In general, the “Tofan government’s” program is aimed at strengthening the position of local producers in the country’s domestic food market. How this goal will be achieved is another question.
Incidentally, during Vasile Tofan’s consultations with the business community, some leaders of Moldova’s food industry associations got the impression—or rather, the hope—that the future Cabinet of Ministers would seek to liberalize imports of European raw materials in order to boost Moldova’s processing industry.
Food producers have also been promised an increased market presence through fair contractual relationships and measures to combat unfair trade practices.
Funding for Objectives
In accordance with the development targets included in the program through 2029, at least 350 million euros in public and private investment is expected to be mobilized for the modernization of the agri-food sector and related state institutions.
