Finances

DEUTCHE WELLE ANALYZES WHY MOLDOVAN PRICES ON AGRICULTURAL GOODS ARE HIGHER THAN IN GERMANY

21 may, 2019

German radio station Deutche Welle made an attempt to understand why many agricultural products in Moldova are more expensive than in Germany. The article, published on the radio station’s portal, says that in recent weeks the prices on basic agricultural commodities sharply grew, while the country, known for its fertile soils, is now importing around 80% of green dill and parsley from Turkey, Georgia and Ukraine.

The article cites National Energy Regulatory Agency (ANRE) statements, which says that the price is dictated by the market.

“The authorities enumerate several reasons which led to growth of prices on potatoes. These are the reduction of potato cropland by 1 thousand hectares over the last 3 years. According to the official statistics, over the first months of 2019, Moldova raised the imports of potatoes from Belarus 320-fold. In January-February 2019, Belarus exported to Moldova around 13.5 thousand tons of this product, though over the equivalent period of the last year, these figures were of only 42 tons. Currently, 15 companies are importing potatoes from Belarus and other countries (Romania, Ukraine, Russia, Israel, Poland and Germany) to Moldova”, the article said.

According to the publication, after the election promises, potatoes suddenly went up in price by over 120% and now cost almost three times higher than in EU countries – 40 Moldovan lei/kg [in reality 25-30 lei, moreover just from this-year harvest].

“The demand for potatoes on the Moldovan market may also grow due to the fact that over the last 1.5 months 19 of 121 shipments of Belarusian potatoes were infected with rot, which was identified at the phytosanitary control checkpoints of Moldova”, the Deutche Welle wrote.

The author of the article reminded that in autumn of 2018 Moldovan apples were rotting away under snow, because agrarians had no markets to sell them, while juice factories were proposing a too low price for these.

“In spring, Moldova was importing apples from Ukraine. According to the National Food Safety Agency, within the period of December 1, 2018 through February 13, 2019 Moldova imported over 4 thousand tons of apples from Ukraine (without taking into account the amount, imported to the country through the Transnistrian region). Currently, Moldova is holding the 3rd place on importing of apples from Ukraine”, the article says.

The author notices that internet users make jokes about the growth of potato prices and call on Moldovans not to buy this expensive product next several weeks, as the prices on it have been inflated artificially.

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