Cesar Gheorghe, a well-known Romanian agribusiness expert, shared the relevant calculations on his Facebook page. At the same time, he noted that we are not talking about other direct costs – for seeds, plant protection products, labor, etc.,” he said.
“In today’s market conditions, with low prices for agricultural raw materials and a 20 percent increase in direct costs, can farms still count on financial returns from their business,” the quoted source wondered. – Today, everything along the chain is becoming more expensive: logistics, processing, and the services of merchants at the wholesale and retail levels. This means that solutions are needed: reduction of excise duties and VAT to compensate part of the costs, zero VAT rate to stimulate consumption of the population. Because VAT on the final product on the store shelf does not give anything – the state budget is not replenished due to a sharp decline in consumption. In the current situation, “less is more” from the economic and budgetary points of view”.
Economists interviewed by Logos Press agree that in the Republic of Moldova, which is 100% dependent on imports of fuel and fertilizers, including through neighboring Romania, the increase in direct production costs of farmers will certainly be higher – at least 30%.
But this is in the case if a significant share of resources, in particular, diesel fuel and mineral fertilizers, agricultural producers will try to buy in the remaining days and weeks before the spring field work. Formation of “resource fund” at the last moment before the start of spring field works is to some extent characteristic only for micro and small farmers, as well as agricultural producers, since last season being in a difficult financial and economic situation. Alas, there are not a few of them.
Earlier, Logos Press reported that at least 90% of mineral fertilizers have already been imported or are on their way to Moldova, as well as mostly bought and paid for by agricultural producers.
