Emergency Support to Vulnerable Smallholder Farming Households in Moldova to Mitigate Effects of Supply Chain Disruption Caused by the Ukraine Conflict - TCP/MOL/3901
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The agriculture sector is traditionally the main pillar of the Moldovan economy. In 2020, it employed over 27 percent of the country’s labour force, and accounted for around 12 percent of Moldova’s gross domestic product and approximately 45 percent of total exports. The sector produces a large range of agricultural products, including grains, fruit, vegetables and livestock. In 2016, smallholders represented 98.8 percent of the total number of agricultural producers and cultivated 36.4 percent of the total agricultural land in the country. Smallholders and family farms generate more than 62 percent of the total national volume of agricultural produce, making a fundamental contribution to overall food production and food security. It has been estimated that approximately 70 percent of the rural population depends solely on agriculture for its livelihood. Agricultural production in Moldova is entirely dependent on the import of major agriculture inputs, including fuel, fertilizers and chemical products for plant protection. This dependency makes Moldovan agriculture subject to international price volatility. Insufficient access to quality inputs remains a constraint for competitiveness in a number of subsectors. The ongoing humanitarian crisis in Ukraine has created unprecedented challenges for Moldovan farmers. Key challenges relate to reduced access to neighbouring export-import markets and to key agricultural inputs, and the disruption of economic transit routes. In 2022, the government estimated that the ongoing crisis in Ukraine had already affected 70 percent of smallholder farms.