Republic of Moldova

The Republic of Moldova (MDA) is a landlocked country in Eastern Europe, bordering Romania to the west and Ukraine to the north, east and south. About 2.6 million people live in Moldova in an area of 33,850 km². In the last 25 years, around 1 million Moldovans have left the country. The gross domestic product per capita was around $5,230 in 2022. Taking purchasing power into account, this corresponds to around 30% of the average for EU member states.

Due to its geographical proximity to Ukraine, MDA is directly affected by Russia’s war of aggression against Ukraine. Attitudes towards the European Union and Russia in Moldovan society are divided. The current government has a clear pro-European orientation. In view of Russia’s war of aggression against Ukraine, which violates international law, MDA submitted an application for EU membership in March 2022. MDA has officially been a candidate for EU membership since June 2022, and in December 2023 the EU gave the green light for the start of accession negotiations. Although MDA already has experience with EU harmonization through the Association Agreement and Deep and Comprehensive Free Trade Agreement (DCFTA) signed by the EU and MDA in 2014, the full adoption of the EU acquis represents a significant challenge.

Agriculture remains a significant sector of the Moldovan economy, accounting for approximately 8% of GDP and 38% of the workforce (as of 2021). Agriculture has a bipolar structure: the majority of the 900,000 agricultural land holders, are families that are practicing (semi) subsistence farming with less than 3 hectares of usable land. On the other hand, there are just over 3,000 marketable businesses that manage well over 50 hectares. MDA has unique soil resources, mainly chernozem soils (~75% of the 2.5 million ha) with high productivity potential. The climate is characterized by mild winters and long, hot summers with low humidity, which is ideal for growing wine, fruit and vegetables. Agriculture is an important foreign exchange earner, with food accounting for 45% of exports. The EU is now the most important trading partner.

Despite the potential, Moldovan agriculture faces numerous challenges, including inflation, which leads to increased prices for food and agricultural inputs. The ongoing rural exodus has led to a shortage of qualified specialists in the agricultural sector. The average age of farmers is around 60 years and there is a lack of young talent. Climate change is also affecting Moldovan agriculture with frequent droughts, floods, hail and late frosts, which have a negative impact on crop yields. The progressive deterioration of soil quality further exacerbates the problem.

In view of these challenges, the Moldovan Ministry of Agriculture and Food Industry (MAIA) presented its new National Strategy for Agriculture and Rural Development in 2022. This sets out Moldova’s objectives for the period 2023-2030 and focuses on climate-resilient, sustainable farming methods, market development and export promotion, economic development in rural areas and the gradual adoption and implementation of the EU acquis in the agricultural sector.