ECONOMIC COUNCIL TO THE PRIME MINISTER OF THE RM

The Secretariat of the Economic Council to the Prime Minister is supported by the European Bank for Reconstruction and Development, funded by the UK Government’s Good Governance Fund
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The crisis in the region has made packaging more expensive, costing up to four times more

5 April 2022 – Moldovan producers saying that the crisis in Ukraine is causing prices for all types of packaging to rise uncontrollably. One example is wooden pallets, which have now become a huge problem for Moldova. Their price has increased several times. Previously, the cost of a new pallet was 120 lei, today it costs 400 lei second-hand.

The same is true of stainless steel barrels, the price of which has risen exponentially in recent months, as well as plastic and wooden crates. The production of glass, which requires a lot of energy, has also become very expensive, not least because of the rise in energy prices, on which Moldova is dependent.

According to Ludmila Andronic, a representative of the Moldovan Beer Producers’ Association, one of the reasons for the steep rise in prices is that Moldova does not have local raw materials for the production of packaging in most cases, and does not take measures to reuse and return packaging. These measures could reduce costs, says Ludmila Andronic.

A solution to the difficulties faced by the sector has been identified – creating a system for storing reusable packaging. This would reduce waste and be economically beneficial. Glass, plastic or wooden crates, pallets, stainless steel drums, etc. are returned to the factory once the goods have been transported.

The entrepreneurs also propose to create conditions where the consumer can return the bottle to the shops for a fee.  For this to be possible, fiscal and economic regulations are needed, say the entrepreneurs. In 2020, the Packaging and Packaging Waste Regulation was approved. This, according to the executive director of the Association of Foreign Investors in Moldova, Ana Groza, includes the notion of a deposit system. But for it to work, the Environment Agency needs to draw up a list of packaging that can be placed in these landfills, together with entrepreneurs, as the government has agreed. Tax regulations are also needed to motivate retail chains to set up storage facilities for bottles returned by consumers in exchange for money.

Ludmila Andronic, representative of the Association of Moldovan Beer Producers, says the issue is very topical now, and discussions with the state authorities are expected to take place within two weeks at the Economic Council’s platform to the Prime Minister of Moldova.

The Secretariat of the Economic Council to the Prime Minister is supported by the European Bank for Reconstruction and Development, funded by the UK Government’s Good Governance Fund, and the International Finance Corporation’s Investment Climate Reform Project funded by the Government of Sweden’s International Development Agency.

 

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