The Government of the Republic of Moldova will borrow US$25 million from the World Bank for developing and modernizing the animal-breeding sector. Minister of Agriculture and Food Industry Vladimir Bolea said the money will be provided in the form of subsidies to farmers who will decide to build cattle farms or to extend existing farms. According to the Deputy Prime Minister, farmers will receive state support depending on the quantity of milk produced by each cow, IPN reports.
The official noted that the regulations for subsidizing the animal-breeding sector are now being worked out. Most probably, the money provided by the World Bank will become available in August.
“The US$25 million will give a strong impetus to the development of cattle farms. The objective is to have about 20,000 cows, with a productivity of at least 8,000 liters of milk during the period of lactation, in our farms until 2025. This is an accomplishable objective. The productivity level is not exaggerated as we have already farms where the cows produce 9,000-9,500 liters of milk during the period of lactation. The business entity needs to take into account the fact that the success of the business depends on the animal’s genetics and on the fodder given to this animal. After the agreement between the Ministry of Finance and the World Bank is signed, we hope the money will become available for cattle farms in August,” Vladimir Bolea stated in the program “Common Objective” on TVR Moldova channel.
The minister noted that the new subsidization regulations stipulate that support will be provided per kilogram of supplied milk based on invoices. The state will also support the building of farms, the purchase of modern equipment and the increasing of the number of cows.
“There will also be subsidized the building of barns and the installation of photovoltaic panels as we realize that all the costs that are not diminished at the beginning are later included in the price of a liter of milk. To build a farm, one needs to buy an animal for €10,000. To start a business, one needs €1 million for a farm with 100 cows. The farm represents an investment in stages and a period of at least three years can pass since you build the foundations up to the moment you obtain a liter of milk. That’s why the Ministry decided to subsidize in stages as they build barns during the first year and we will subsidize the building of barns. Subsidies per liter of milk will be provided later,” noted Vladimir Bolea.
The financing agreement with the World Bank for launching the Agriculture Governance, Growth and Resilience Investment Project (AGGRI) has a value of US$55 million. The money will go to rehabilitate the animal-breeding sector, to strengthen the veterinary medicine services and to increase access to irrigation services.
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