Key messages Agricultural production is expected to be good in 2012, much above the 20072011 average levels for all main products, except

winter crops which have been severely affected by frosts. A tender has been launched to import 70 000 tonnes of wheat to cover food consumption.

The prevalence of poverty declined from 26.3% in 2009 to 21.9% in 2010 and is expected to have further decreased in 2011. The reduction was larger in rural than in urban areas but the difference between rural and urban areas remains huge.

Food prices remained nearly stable in JanuaryMarch 2012, except for beef meat which increased by 8%. Cereal imports in the first quarter of 2012 were 24% above the previous years level whilst the import bill was 87% higher than in the

first quarter of 2011 due to high import prices.

Republic of Moldova JanuaryMarch 2012

Food security indicators* (Time series available at: www.foodsec.org/mo)

Economic indicators

GDP growth (%) 6.4 2011 Total population (millions) 3.5 2012 Population growth (%) 0 2012 Share of rural population (%) 58 2012 Life expectancy (years) 69 2010

Unemployment (%) Total Rural 6.7 5.2 2011

Social protection expenditures as % of government budget 18 2011

Consumer Price Index (2010=100) 108 2011 Food Price Index (2010=100) 108 2011 Remittances as % of GDP (WB) 23 2010 Cereal imports as % of total exports (in value) 1.5 2011

Agricultural indicators Contribution of agriculture to GDP (without agro-processing) (%) 12 2011

Share of plant production/livestock in agricultural output (%)

Plant Livestock

70 28

2011

Share of labour force in agriculture (%)

Women Men

43 57 2011

Average land ownership (ha) 1.8 2011 Farmgate price index (2010=100) 110 2011 Average monthly salary in agriculture (MDL) 1 867 2010 Women's access to land ownership (UNDP)

Full access 2009

Other indicators including nutrition

Prevalence of poverty (%) Total Rural 22 30 2010

Share of food expenditures in total expenditures (%)

Total 1st quintile

41 59 2010

Share of staple (cereals and potatoes) in total calorie consumption (FAO) (%) 49 2007

Share of protein of animal origin in total calorie consumption (FAO) (%) 7 2007

Undernourished population 20052007 (FAO) (%) 6

Prevalence of iron deficiency among women (anemia, age 1549) (FAO) (%) 28 2005

Prevalence of stunting among under 5 children (FAO) (%) 8 2005

Income share held by lowest 20% (WB) (%) 6.8 2008 * Source: National Bureau of Statistics unless otherwise indicated

Food Security and Agriculture Highlights

Food security and poverty situation The prevalence of poverty in Moldova declined by 4.4% in 2010, from 26.3% in 2009 to 21.9% in 2010 (Briefing Note of the Ministry of Economy, July 2011), mainly attributed to increased agricultural production, high prices of agricultural products and more efficient targeting of social assistance. The reduction was larger in rural than in urban areas but the difference in poverty levels between rural and urban areas remains huge: 30.3% of the rural households were poor in 2010 against 7.3% and 14.2% of the urban households in big towns and small towns respectively. In urban areas, poverty decreased by more than half in 20062010 while in rural areas poverty decreased by only 11% during the same period (more info available at www.foodsec.org/mo). Poverty data is not available for 2011 yet but the prevalence of poverty is expected to have further decreased in 2011, as disposable incomes of the population and consumption expenditures increased, in real terms, by 5.4% and 3.9% respectively. Based on the most recent data available on the prevalence of undernourishment (200507), Republic of Moldova is classified by FAO among the countries with a moderately low level of hunger, with 6% of undernourishment (FAO).

FAO SCALE OF HUNGER (% of undernourishment)

Very high (>= 35%)

High (25-34%)

Moderately high

(15-24%)

Moderately low

(5-14%)

Very low (< 5%)

FAO Hunger Map

Food prices

During the first quarter of 2012, the consumer price index increased by 1% and the food price index by 1.5%. In JanuaryMarch 2012, the food price index was 4.7% higher than during the same period of the previous year. Bread: The bread price index remained stable between January and March 2012, with a small increase registered between January and February. Price in JanuaryMarch 2012 were slightly below January-March 2011 level.

National monthly price indices of bread

Source: National Bureau of Statistics

Food Security Information for Decision Making

www.foodsec.org European Union

Potato: The potato price remained about stable in JanuaryMarch 2012, after dropping from the absolute record level of 9 MDL/kg in June 2011. On average, the price was 60% lower than in the same period of 2011. Price oscillated between 2.5 MDL/kg in January and 3.0 MDL/kg in February, by far the lowest price registered in the last five years. Low price is due to good harvests in 2011 in the country and in the region. Beef: Beef price increased by 8% between January and March 2012, reaching 79 MDL/kg, the highest level registered in the last three years. The average price for the first quarter of 2012 was 9% above the average for the same period of 2011.

http://www.foodsec.org/web/regional/europe/moldova/food-security-indicators/en/http://typo3.fao.org/fileadmin/user_upload/eufao-fsi4dm/doc-training/poverty2006_2010_moldova.pdfhttp://www.fao.org/hunger/en/http://www.fao.org/hunger/en/http://www.foodsec.org/web/

More readings: FAO - Policy Briefs FAO - Global food price monitor FAO - Crop Prospects and Food Situation FAO - Media Center Word Bank Website: www.foodsec.org

The views expressed in this publication do not necessarily reflect the views of the European Union or the Food and Agriculture Organization of the United Nations.

Agricultural production According to the National Bureau of Statistics (NBS), agricultural production in JanuaryMarch 2012 increased by 0.6% compared to the same period of 2011 (for all types of production units), mainly due to growth in animal production (sheep and goats increased by 14.1%, poultry by 9.1% and pigs by 7.7%). According to the Ministry of Agriculture and Food Industry (MAFI), 2012 production is expected to be good, much above the 20072011 average for all main products: cereals (10%), sunflower (17%), sugar beet (14%), potato (14%), vegetables (13%) and perennial plantations (2%). Compared with last year, production is expected to be lower for cereals (-2 %), sunflower (-11%), potato (-12%) and perennial plantations (-2%). Crop Avg

2007-2011

2011 2012 (forecast)

2012/2011 2012/ average

Thousand tonnes Percent Cereal grain of which

2234 2498 2458 -2 10

Corn 1174 1468 1551 6 32

Wheat 785 787 684 -13 -13

Other cereals

275 243 223 -8 -19

Sunflower 324 427 380 -11 17

Sugar beet 667 589 759 29 14

Potato 272 351 310 -12 14

Vegetables 322 362 365 1 13

Perennial plantations

930 973 950 -2 2

Source: MAFI

The winter crops (wheat and rape) have been severely affected by winter frosts. According to MAFI, conditions are good for 20% of the total 351.9 thousand ha of winter crops, satisfactory for 40% and poor for 40%. Favourable weather conditions of the last month have enabled growers to perform seasonal work in orchards in time.

Food trade In the first quarter of 2012, cereal imports amounted to 3 479 tonnes, i.e. 24% more than in the first quarter of 2011. The import bill in the first quarter of 2012 was however 87% higher than in the first quarter of 2011, due to high cereal prices on international market.

Cereal imports (JanuaryMarch)

Source: Customs Service

Objective of the Food Security and Agriculture Highlights The objective of the Highlights is to provide an overview of the situation of food security in the country, with a focus on agriculture which is a key sector for developing the country and improving food security of rural and urban populations. The Highlights are produced with support from the EC/FAO Programme on information systems to improve food security decision-making in the European Neighbourhood Policy East Area (20102012), funded by the European Union and implemented by the Food and Agriculture Organization of the United Nations. For more information please contact: Svetlana Ojog Francoise Trine Svetlana.Ojog@fao.org Francoise.Trine@fao.org

National monthly price of beef meat

Source: National Agency for Rural Development (ACSA)

An international tender has been launched to import unusually high quantities of wheat, 70 000 tonnes, to compensate for expected low production. According to MAFI, the overall production of wheat in 2012 will not exceed 684 000 tonnes, of which only 240 000 tonnes are for human consumption (70% of the annual country consumption needs). The rest will be covered by stocks (40 000 tonnes) and imports. The Government approved a budget of 400 million MDL in 2012 (similar to 2011) for agricultural subsidies, including: loan incentive measures, production risk insurance, investments in perennial plantations, investment in vegetable production in protected areas, investments in agricultural machinery, irrigation equipment, anti frost systems and anti hail installations, livestock development, post harvesting and processing infrastructure. Between 2009 and 2012, the prices of agricultural inputs increa