| REPORT 2007-2008 |
 |
 |
 |
|
Introduction Alexei Ivanov Chairman of the National AGROinform Board In 2007-2008, the National Federation AGROinform passed through a dynamic development, aiming to increase the efficiency of the provided services and to ensure the network sustainability. These activities contributed to a considerable increase of the members' number - – 4137 members at the end of 2008, fact which proves the appreciation of the achieved results of the Federation, even the number of the member-organizations within the network decreased. During the reference period, the AGROinform Board had an important role in promoting the visions and opinions of the agricultural producers and rural entrepreneurs, AGROinform members, towards the state structures. Thus, on the basis of the performed consultations within the network, the Board has formulated the position paper of the AGROinform Federation, which has been submitted to the Ministry of Agriculture and Food Industry. It's worth mentioning that the authorities took into consideration the AGROinform proposals, some of them are being reflected in the subsidy regulation of the agricultural producers for 2009. One of the main priorities of the AGROinform Board for the future is to improve continuously the representation of members' interests, and involve actively in developing and adjusting the policies framework favorable for rural area development. Aurelia Bondari Executive Director The activity range performed by AGROinform within the past 2 years has considerably diversified along with the dynamic evolutions reordered on the market consultancy services. Presently, the main objective of the network is focused on providing complex support for all value chain segments. Those are based on economic-financial and marketing aspects within the strategic planning of the production activities and investments. In particularly, the period 2007-2008, has been distinguished by an ensured sustainability through diversifying the commercial services, setting up a reserve Fund and reducing the costs. This period is also characterized by the activity strategy adjustment in order to represent more efficiently the members' interests and to develop the network capacities in lobby issues. AGROinform was actively involved in promoting favorable policies for rural area development. In this respect, lobby and advocacy activities have been carried out such as: studies, public debates, farmers' mobilization actions, setting up alliances with other similar organizations from the country, as well as international financial institutions and projects. Other concrete achievements have been recorded in the context of agricultural policies – subsidies in agriculture, simplification of export procedures, development of agricultural markets, etc. The capacities in this area have been appreciated by the state authorities. AGROinform has been invited to participate in the development of the National Development Strategy for 2008-2011 and Strategy for Sustainable Development of the Agricultural Sector for 2008-2015. Vision The AGROinform Federation aims to contribute to the creation of a more favorable legal framework, enhance the capacities of rural entrepreneurs and promote them on internal and external markets. Mission The AGROinform National Federation is a network of regional non-governmental organizations that supports the economic development of rural communities with complex assistance in business development, marketing, and implementation of advanced growing technologies, as well as representing the interests of its members, agricultural producers and rural entrepreneurs in relation to all state authorities levels and other relevant organizations; developing and promoting favorable policies for rural area development. In 2008, the National Federation of Agricultural Producers AGROinform celebrated its 10-year activity on the consultancy market from Moldova. The Federation's partners stated that AGROinform represents for the associative sector a model of responsibility, honesty, respect and an example how to achieve the settled purpose. Moreover, the AGROinform activity has contributed to the economic development of the rural area by providing complex assistance in business development, marketing, application of advanced technologies within the agro-food sector. Network development If in previous years the focus was laid on extending the network activity area, attracting new members, in the reference period the top priority is to ensure the functioning and sustainability of the promoted activities. Thus, in 2007-2008, the activity of the AGROinform Federation was focused on ensuring the sustainability by diversifying the commercial services, creating reserve fund and reducing the costs. Resultantly, at the end of 2008, the AGROinform network was joining 22 non-governmental organizations with 4137 members. In comparison to 2007, even the number of member – organizations decreased the number of members increased by 29%. Although the member-organizations decreased, the quality and the value of the services provided to beneficiaries increased. In order to facilitate the functioning and to strengthen the network sustainability, a range of activities are permanently organized aiming to:
Among the other achieved results within 2007-2008, it is worth mentioning that the AGROinform network has been recognized as the only one which is providing qualitative commercial services on regional level. The range of services provided to the beneficiaries has been diversified and the quality improved fact which has been confirmed also by the increased number of members. Results in figures Number of organizations - 22 Number of members - 4137 Increase of members' number in comparison to 2007 – 29% Increase of reserve fund in comparison to 2007 - 13,5% Policies and interest representation The main activities of the AGROinform Federation under this chapter have been concentrated on two domains: 1) subsidies in agriculture, 2) fiscal policy for entrepreneurial cooperatives. Both subjects were permanently in the view of the Board, which have initiated consultations in the network. With this purpose, round tables have been organized aiming to discuss the existing constrains related to the subsidies for agricultural producers and to collect concrete proposals for improving the subsidy system. The analytic information from all the regions has been systematized, discussed by the Board and on the basis of these data, concrete proposals for improving the subsidy system of the agricultural producers have been developed. These recommendations have been formulated in the position paper of the AGROinform Federation and submitted to the Ministry of Agriculture and Food Industry. The second problem analyzed by AGROinform refers to the fiscal system, especially VAT, which is twice applied to the entrepreneurial cooperatives – from the members that deliver their products to the cooperative and from the cooperative which sales the products on behalf of its members. This procedure is increasing the transactional costs and makes the local products less competitive. In this case, again the participatory working method was used involving the representatives of 12 cooperatives. Other identified problems refer to the exclusion of the cooperatives from the list of beneficiaries of fiscal facilities as well as not paid back VAT for the imported agricultural equipment. In order to present explicit the problems that impediment the development of entrepreneurial cooperatives in Moldova, 2 studies have been developed, which were submitted to the Ministry of Agriculture and Food Industry and broadly made public, inclusive during the National Conference "Cooperation of agricultural producers in marketing – a solution for accessing the markets". The conference became an efficient platform not only for promoting the cooperation advantages and principles but also for lobbying the improvement of the legal framework. During the reporting period the preparation of the campaign "Improving the legal framework for entrepreneurial activity of the small and medium size farmers" continued in cooperation with the Coalition for Rural Economic Development. In this context, analytical studies were developed and discussions held with diverse stakeholders such as: World Bank, UNDP, and Trade Union in agriculture Agroinsind. Other noticeable achievements of the AGROinform Federation worth mentioning is the participation in developing national policy papers such as National Development Strategy for 2008-2011 and Strategy for Sustainable Development of the Agricultural Sector for 2008-2015. Results in figures: Initiated lobby/advocacy campaigns - 2 Interviews in focus groups – 7 Developed analytical studies – 5 Participation in national policies development – 2 Cooperation and agro-business The cooperatives created and assisted by AGROinform continued to attract new members due to the provided marketing services. Thus, if some producers, non-members of cooperatives, gave up harvesting the products due to the problems with markets, the cooperatives ensured the commercialization of the members' products. An analysis performed on the basis of the cooperative Orhei-Fruct, specialized in apple commercialization, shows that at the end of 2008, all its members sold to the processing factories the entire amount of harvested apples at more advantageous prices – 1.1 lei/kg, while the non-associated producers received only 0.85 lei/kg. Among other important achievements in the cooperation area, realized with AGROinform support is the creation of the Fruit Producers Association. The Association managed already to impose itself in representing its members towards the processing companies and state institutions. Actually, the Association of Fruit Producers is joining 96 fruit producers from 26 regions of the country. Through the ASPA crediting line, administrated by AGROinform, credits were provided in the value of 8 mln lei. Amongst the most important investments, the following have to be mentioned: the sore facility of the cooperative Gramineus-Com, with a capacity of 5000 tons for cereals, as well as the re-equipped refrigerator for storing fruits and grapes of the cooperative Vegetal-Com (with a capacity of 100 tons of apples or 60 tons of grapes). Until now, with institutional and financial support of AGROinform, 32 entrepreneurial cooperatives with approximately 1000 members have been created and assisted. Parallel, 87 informal groups joining more than 1500 farmers received assistance in marketing their agricultural products. Results in figures: Cooperatives created/assisted – 32 Number of cooperatives' members – more than 1000 Investments value of the marketing cooperatives – 320 thousand EURO Value of transactions made by cooperatives and strategic groups – 380 thousand EURO Marketing The key activities performed in 2008 were focused on updating and developing the Marketing Information System (MIS), administrated by the AGROinform Federation. In this context, the monitoring on five wholesale markets from the country have been initiated (Edinet, Balti, Ungheni, Chisinau, Cahul) as well as the markets of the neighboring countries (Poland, Russia, Ukraine). The information has been distributed to 7575 beneficiaries (producers, wholesalers, intermediaries). At the same time, in order to ensure the MIS sustainability and efficiency, analytical information about local markets is being delivered on the basis of three types of subscriptions, depending on the subscribers needs. The subscriptions include monthly studies per products, internal and external market prices for fruits, vegetables and cereals, export-import analysis, monitoring of internal markets of fruits and vegetables, prognoses of market trends, commercial offers. The analytical information distributed through subscriptions is foreseen for intermediaries, small and medium processing enterprises, input supply companies and farmers. Only during 2008, the site has been visited by 84 064 users (with 2.17% more than in 2007) from 149 countries (128 in 2007). At the same time, the price information has been used by 4458 visitors of the www.agravista.md Results in figures: Placed commercial offers - 1691 Value of the commercial offers – 21.8 mln EURO Number of assisted and intermediated transactions - 491 Developed market studies – 28 Extension During the year 2008, the member organizations of the AGROinform Federation have improved continuously their services provided to farmers and rural entrepreneurs. The farmers were permanently requiring information, which would allow making more efficient their own activities with lower costs. 223 trainings and 408 group discussions have been organized for farmers and rural entrepreneurs. Additionally, 3 demonstration plots were created; the regional advisors made 1196 visits to beneficiaries and more than 14 thousand farmers received individual advice in different subjects. In totally, only in 2008, more than 22 thousand persons received extension services provided by the experts from the AGROinform network. Parallel, 33 informal sales groups have been created, which represent a group including a variable number (15-25) of farmers that cooperate usually during the season in purchasing inputs and marketing the products. Results in figures (year 2008): Organized demonstration plots – 3 Provided trainings - 223 Visits to beneficiaries – 1196 Individual advice – more than 14 000 Informal sales groups – 33 Business development Taking into account the fact that business development is one of the prior objectives of the AGROinform Federation, in 2008 a broad assistance has been provided to the rural entrepreneurs. This assistance was channeled towards certain main directions: investments in marketing and post-harvesting (store, cooling and drying facilities), access to advantageous financing, quality standards and requirements, business trips with setting up contacts, feasibility studies. All these activities led to the achievement of concrete results and namely: 77 applications for financing in the amount of 4,535 mln lei, 46 feasibility studies (26,122 mln lei). 167 business plans have been developed whereof 95 have been financed (32, 822 mln lei). Results in figures: Applications for financing – 77 Developed business plans – 167 Value of financed business plans – 32, 822 mln lei External relation The AGROinform Federation participates within different international activities fact which contributes to its promotion on external level, as well as strengthening the image on national level and improving the relations with the authorities. In 2007, The Federation adhered to the informal network of non-governmental organizations within the European Neighborhood Policy and it was selected as a partner in implementing the KIC project „European Union, South Caucasus, East Europe and South Mediterranean region – towards equal partnerships". During 2008, the management of the AGROinform Federation together with the Board representatives have participated within four international events aiming to establish new partnership relations and to strengthen the existing partnerships, and namely:
Results in figures: Established partnerships – 3 Developed concepts and project proposals – 5 Editorial activity At the members' initiative and requirements, the AGROinform Federation launched in 2006 a thematic periodic publication, apolitical, the newspaper Agromediainform, which reflects impartial and complex the processes within agriculture and rural businesses. The publication appears bi-monthly, A3 format, 16 pages, 3500 copies per edition, and the number of copies is in a permanent increase. During the International Exhibition Farmer from 2007 and 2008, the newspaper won a prize for broad information and proper reflection of the processes from the Moldovan agrarian sector. Partners Ministry of Agriculture and Food Industry CONTACT Centrul Micro-financing organization MICROINVEST CNFA
Donors The above described activities are implemented with the financial support of: Dutch Organization for Cooperation Development Oxfam NOVIB Dutch Organization for Cooperation Development ICCO Cooperative Centre from Sweden SCC Soros Foundation - Moldova Network of Non-governmental Organizations Eurostep TACIS
Implemented programs in 2007 – 2008 by the National Federation AGROinform: Sustainable Capacity Strengthening /SCS/ Short description Due to the favorable geographic position and rich agrarian traditions, agriculture remains to be the most important sector of the Moldovan economy, with a share of up to 30% of the GDP, 59% of the exports and 43% of the active labor force. However, 69% of the poor population live in rural areas and, therefore, a current prerequisite for accelerated economic growth and poverty reduction would be to speed up agricultural development through fair policies focused on social equity. Program goal: Improving the status of farmers in the Republic of Moldova and increasing their income by ensuring the sustainability of Federation of Agricultural Producers AGROinform which is based on a considerable number of viable member organizations at regional level. Program objectives:
Alliance for the Marketing of Agricultural Products - phase II & III/ASPA/ Short description: The program "Alliance for the Marketing of Agricultural Products /ASPA/" was launched in 2001 for a three years period, with the goal to facilitate the access of farmers to the market, and at the beginning of 2005 the program was expanded for a new period. In the current phase, the program will help to understanding new approaches and methods of work. The program is focused on three basic aspects: cooperation and business development, improvement of the legal framework related to agricultural trade and Marketing Informational System development. At the same time, the implementation area was expanded from four to eight regions. Within the program, National AGROinform Federation together with MicroInvest will further develop the credit line and loan guarantee fund in order to encourage investments in agricultural businesses. The assistance granted for the development of individual and cooperate businesses will increase together with the assistance for the development of beneficiaries' management skills, including financial skills, and it will be performed by means of direct technical assistance as well as by launching complex training cycles. Program goal: Income increase in rural areas by facilitating the access of farmers on export market and developing agricultural businesses. The objectives of ASPA II & ASPA III Economic component:
Legal component:
Rural Communities Development /DCR/ Short description: The program supports the development of farmers' skills in order to participate with own forces in the creation of welfare in rural areas by using the study circle method. This method represents a dynamic and participative process of learning which is based on participants' experience, on the abilities of the group leader and the quality of the materials used. Program goal: Rural communities development by creating study circles for the facilitation of knowledge transfer. Program objectives:
The main impact of the program is related to the development of capacities at community level both in economic terms and social terms. In social terms, this program offers farmers a method of organizing its own system of information and knowledge transfer based on democratic values of different groups of interest. This result is directly related to the innovative aspect of the program – it is for the first time that the farmers from the Republic of Moldova formulate and implement learning programs in base of their own experience. Another expected effect is related to the development of women's leadership skills and their involvement in decision making process at community level, as well as the mobilization of society in solving the day to day problems. In economic and technical aspects the basic impact was expected as a result of improving the knowledge, a fact that is going to contribute to the optimization of the decision making process and income increase. This does not refer only to the use of improved husbandry techniques, but also understanding the offer for necessary products, the acquisition possibilities at more advantageous prices, as well as understanding market trends and the ability to enter the market in the right place at the right time. Farmers are going to learn to plan short-term investments, to get loans, etc. At organizational level, the impact will be achieved by the development of AGROinform network at national and regional level by implementing new methods of learning for adults. This fact will intensify: the diversification of the clients of regional organizations, increase of trust between beneficiaries and advisors, develop a new type of products that will generate income in the future. Cooperation as a tool to increase farmers' welfare in Moldova /CSV/ Short description: The main problems faced by farmers in the Republic of Moldova at present are: low investment capacity, lack of knowledge and skills in production technologies, agricultural marketing and business development. All these lead to low profits in agriculture, while farmers state that the existing problems are due to a single essential one – lack of markets. In the view of AGROinform, farmers' cooperation is an important tool in solving these problems. A survey conducted by the AGROinform team in 2006 showed that there are about 220 business cooperatives in the Republic of Moldova . A great part of them have a difficult activity as they do not follow the classic cooperation principles. Program goal: Increasing farmers' welfare through efficient cooperation. Program objectives:
|
