The Ministry of Agriculture and Food Industry of the Republic of Moldova

1. Assessment of Drought related damages in the Republic of Moldova 4 September 2012 The Ministry of Agriculture and Food Industry of the Republic of Moldova

2. The Agriculture Sector of Moldova • Population: 3.5 million; 32 Rayon or districts, 5 Municipalities and 60 cities; 917 Local Authorities - Primarias (mayors) • Agriculture employees about 30% population • Agriculture land accounts for 73,8%2of the total land area of the country • Agriculture contributes 16,2% of the GDP1 • Agriculture production/processing generates 50% of the export revenues • About 84% of agricultural land is privatized (1,692,000 ha) and owned by: - 32,8 % 391 646 Individual farmers (555,000 ha), and - 50,2 % 4017 agricultural corporative units, (CAP, SA and SRL - 849,800 ha) 1 http://www.indexmundi.com/moldova/economy_profile.html 2 is about 2, 498 th.ha

3. Agriculture Land Structure • Arable land 72,6% • Pastures 14% • Vineyards 6% • Orchards 5,3% • Average plot size after privatization was about 1,65 hectare, including: • - 86% - under the crop cultivation (1,42 ha) • - 14% - vineyards and fruit garden (0,22 ha)

4. Crop Production • Cultivated area accounts about 1,483,000 ha. Cereals accounts for 60,6%

5. MAFI Strategic prioritiesfor the years 2012 – 2015 • Implementation of the food safety reform • Restructure and modernise the wine sector • Support the development of a modern market infrastructure • Implementation of conservative agriculture (No-Till) • Support the development of milk and meat production sector • Support development of renewable energy production from agricultural raw materials • Reorganisation of the existing education and research resources. • Reorganization of the agricultural subsidy system, aimed at modernizing and concentration of production • Implementation of basic information systems to support the functioning of the food chain • Support in development of the High Value Agricultural Sector • Revitalizingtheirrigationsystemsandextendtheareas of irrigated land

6. The 2012 Drought • The State Hydro-Meteo Service (SHS) reported temperatures in June-July that were 3.7-5.1 Co higher than annual averages and the precipitation in the same period was only 15-60 %of the multiannual average, with soil temperatures reaching record heights. • The number of days with max. air temperature higher than +30 degrees and higher for summer period was 39-62 days (the norm being 8-27 days)

7. Average monthly air temperature (°C) in 1946/2011 and 2012Source: State Hydro-meteorological Service The 2012 Drought Drought is a production constraint when precipitation is out of the normal average parameters. Precipitation quantity (mm) in 2007 and 2012Source: State Hydro-meteorological Service On average, Moldova experiences a drought once every five years in the north and once every three years in the southern and central districts.

8. The 2012 Drought Sept ’11 – July 12 rainfall 30-50% of multiannual average In certain (southern & central areas) 20% the of multiannual average rainfall Peak temperatures 3-5% higher the multiannual average Soil moisture 1/3 of the multiannual average The surface water flow reduced by 30-50 % compared to the multiannual average, in substantial catchments areas (Nistru and Prut rivers) and by 20-40 % in smaller catchments areas and rivers.

9. Impact of the 2012 Drought During June and July 2012 the hydrothermal coefficient was 0.1-0.5 across most of the country. Values over 0.7 were recorded in several districts. Transnistra Pop: 580,000 Autonomous district 4 rayon Geographical distribution of the effects of the 2012 drought Moderatly affected Very affected Strongly affected Severely affected

10. Impact of the 2012 Drought – Plant production • 1. Crop Production • The impact of the drought on crop production is moderate at national level. • North –moderatly affected • Centre –very affected • South - strongly and severly affected (Taraclia, UTA Gagauzia, Basarabesca Cahul and Cantemir etc.), • Severely affected southern areas accounts for 11.7% of the total population (420,000 residents) and 15.4% (5,217 km2) of the total territory of Moldova.

11. Impact of the 2012 Drought - YIELDS Winter wheat average yield (t/ha) in 2012 compared to the 2009-2011average. MAFI - National wheat yield decline in average - 25%

12. Impact of the 2012 Drought - YIELDS Maize crop average yield (t/ha) in 2012 compared to the 2009-2011average. MAFI early estimate - National average maize yield decline - 52% MAFI/FAO assessment - National average maize yield decline - 59%

13. Impact of the 2012 Drought - YIELDS Sunflower average yield (t / ha) in 2012 compared to the 2009-2011average. MAFI early estimate - National average sunflower yield decline - 37% MAFI/FAO assessment - National average sunflower yield decline 53%

14. Plantaţie de viţă-de-vie afectată

15. Impact of the 2012 Drought - OUTPUT TRANSNISTRIA - Area, Yield and Output of Main Crops - 20121 [1] Based on operative data provided by Mr.Tsibulski, the representative of agriculture department of Transnistria in 31 August 2012

16. Impact of the 2012 Drought - Livestock 1. Livestock Production Available stocks account for 30-50% of the total animal feed needs. By the end of the harvest (maize), additional 10-20% of the feed needs will be accumulated. It is estimated that destocking of up to 10% of the national cattle herd has occurred by the end of August 2012. 2. Destocking is an on-going trend in Moldova. It is estimated that the drought related destocking will account for 15-20% of the national cattle herd. In most affected areas such as Gagauzia and Taraklia, the impact may well be higher. Past experiences show unlikely restocking and permanent loss in livestock and contraction in livelihoods.

17. Impact of the 2012 Drought The affected population can be divided in three categories, with effects of the drought impacting each group differently. • Leaders (businesses)cultivating on large areas will absorb most of the damages. They will obtain reduced or no yields, andwillbeconstrainedto cover theland lease costs and to invest in the next season’s production. • Rural residents,estimated at some 70% of the rural population on average, renting their land to leaders and will possibly benefit from the land lease and employment. • Small to medium size farmersincluding farmers withownlivestock and the small leaders (businesses) cultivating less then 10 ha, constitute between 10 and 30% of the rural population. • These small to medium size farmers will be most severely impacted. In addition, to reduced or lost yields, they have to invest in next season’s production and/or in animal feed.

18. MAIN FINDINGS • Limited Food security implications due to the drought. • Impact of the drought on crop and livestock production is negative at the national level: North –moderatly affected, Centre –very affected and South - strongly and severly affected. • Severe natural hazards affect Moldova on regular basis. The Ministry of agriculture is well aware and making efforts for long term mitigation (introduction of no-till cultivation, drip irrigation, etc.). • There is a need to improve the coping mechanisms in drought prone areas and knowledge across the livestock and plant production sectors. • Limmitted capacities of the local public authorities and other specialized units to cope with drought effects.

19. ACTIONS TAKEN • The Ministry of Agriculture and Food Industry with technical assistance and support from FAO, evaluated the damage of the drought. • The findings are presented in a Comprehensive Drought Damages report. The estimated losses are 3 billions LMD, of which 2,5 billions LMD are in the phytotechny sector and 0,5 billions LMD in horticulture. • The Ministry of Agriculture and Food Industry will distribute 161,5 MT winter wheat seed to the severely affected farmers (output from FAO GCP/MOL/001/AUS project financed by the Austrian Government). • To mitigate the impact of drought in the frame of disaster risk preparedness initiative, the Government will subsidize inputs for winter 2012 crops (autumn planting) to the severely affected farmers.

20. ASSESMENT – NEEDS - POSSIBILITIES • The Ministry of Agriculture and Food Industry is interested in development of community based agriculture disaster risk preparedness and awareness systems, including monitoring, evaluation and coordination mechanisms, as well as actions plan for response with clearly set intervention thresholds. • Currently the Government of Moldova asks for support in preventing of destocking and addressing the immediate needs of the most severely affected farmers, by: • Preventdestockingodlivestockandensuretheimmediateneeds of themostaffectedagriculturalproducers, byofferingsupport for sustaining of 1 head of cattle per household: • Animal fodder (100 kg/maize grain/household) for critical 100 days of winter feeding (for 26,000 pregnant cows or 68% of the cattle population) (approximately 12 millions LMD or one million US$)

21. ASSESMENT – NEEDS - POSSIBILITIES • Support for partial cover of costs for the winter campaign for a surface of 420 thousand of hectares for the yield of 2013 (agricultural inputs: fuel, seeds, fertilizers). Total estimative costs: 1062 millions of LMD or 88,5 millions USD (at an aprox. exchange rate: 12 LMD for 1 USD). • Support for purchase of maize seeds for spring planting and restarting of the fodder production. Estimative costs: 190 millions of LMD or 16 millions USD

22. Thank you! Questions and comments are welcomed