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Agriculture Report
Republic of Moldova
FREE TRADE AGREEMENTS
Population: 3.55 million
Area: 33,846 km2
GDP per capita at PPP: 2,998 EUR
Economic growth 2013: 8.9%
Inflation: 5%
Employment rate in Moldova: 39.3% (2013) increased, versus
38.4% (2012)
Corporate tax: 12%, 6% in Free Economic Zone, 3% in Free Port
Labor costs (gross salary): averaging 250 EUR/month
Full load labor cost: cca 2 EUR/hour
Proximity to:
• Major markets: cca 880 million customers (FTA with EU, CEFTA, CIS, GUAM).
• OEMs, TIER 1 & 2 suppliers (i.e. RO, PL, HU, CZ, SK, RU, etc.);
2.1 Major Agricultural Products ............................................................................................ 6
2.2 Organic Agriculture........................................................................................................ 10
2.3 International Trade......................................................................................................... 14
2.4 Investment Opportunities............................................................................................... 15
3. Success story...................................................................................................................... 20
4. Testimonials........................................................................................................................ 22
5. Sources............................................................................................................................... 22
FIN
SWE
NOR
RUS
EST
LVA
LTU
BLR
DEU
GBR
EU
POL
ITA
CIS
CZE
AUS
FRA
UKR
KAZ
HUN
ROM
CEFTA
GUAM
BGR
ESP
1. Executive Summary .............................................................................................................. 4
2. Domestic Sector Overview .................................................................................................. 5
Free Trade Agreements signed - 43.
• DCFTA (Deep and Comprehensive Free Trade Area) - 500 million;
• CEFTA Central European Free Trade Agreement (Moldova, Macedonia, Albania, Serbia,
Montenegro, Bosnia and Herzegovina and UNMIK (Kosovo) - 30 million;
• CIS Commonwealth of Independent States (Armenia, Azerbaijan, Belarus, Kazakhstan,
Kyrgyzstan, Moldova, Russia, Tajikistan, Uzbekistan) - 250 million;
• GUAM Organization for Democracy and Economic Development - 60 million.
• FTA with Turkey - 80 million
880 million
Customers
duty-free
market
Introduction to the Agricultural Sector
Republic of Moldova
GRC
UZB
TUR
1. Executive Summary
With its favorable climate and geographical conditions, rich soil resources and biological diversity,
agriculture is one of the leading sectors in Moldova’s economy. The share of agricultural production
in Moldova’s Gross Domestic Product stood at
around 13 percent during the last years. Together
with the processing industry it represents more than
17 percent of the Gross Domestic Product and approximately 45 percent of total exports. At the same
time, agriculture still constitutes the most important
social sector of the national economy, using over 27
percent of country’s labor force.
• From 2009 to 2012 the agricultural
production grew by 14 percent to
22 120 milion lei
• The entire agricultural lands cover
2.48 million hectares or 75 percent
of the country’s entire territory. Out
of which 1820 hectares are arable
land, 300 hectares are perennial
plantations
• Black soils amount around 75
percent of the overall territory
• Total area of the Republic of
Moldova is 33.800 square km
• Agricultural lands 2.48 million
hectares
• Arable land 1.82 million hectares
• Perennial plantations 0.3 million
hectares
• Meadows & pastures 0.36 million
hectares
* Throughout the report, 2012 figures are used in
cases 2013 statistics have not yet been available.
4
Structure of farmsteads holding agricultural land
in breakdown by category (in percent of total area)
9.5%
Other
formations
Export to EU countries
36%
3.5%
Joint Stock
Companies
Production
cooperatives
Ltd.
companies
36%
Rustic
households
and farms
3%
Machinery
and transport
equipment
Beverages
and tobacco
1%
Manufacturing
goods
classified 7%
chiefly
Animal and
by material vegetable
oils, fats
and waves
14%
1%
Crude materials,
inedible,
except fuels
Mineral fules,
lubricants and
related materials
Source: National Bureau of Statistics
Source: National Bureau of Statistics
Traditionally, the agriculture and processing industry
represented the main branches of the nationaleconomy.
grain maize, sugar beet, tobacco. Main varieties of
vegetables grown are: tomatoes, onions, cabbage,
cucumbers, pumpkins, peppers, carrot, red beet,
garlic, squash, aubergine, potherb, green peas.
Agro-food exports account for a signiﬁcant part of
total exports. The most export-oriented products
are wine and spirits, as well as fruit and vegetables,
both fresh and processed. These two categories
alone account for more than 41 percent of exports.
To achieve stable growth in agro-food exports, there
is a need to diversify and increase access to high
value markets. Increasing exports to the EU would
help achieve this diversiﬁcation and provide access
to higher-value markets.
Moldova supplies agricultural products in more than
70 countries. Moldova’s main trading partners are
the EU and CIS, which together account for 90%
of the country’s foreign trade. In 2012 the Republic of Moldova’s exports to EU countries constituted
1,013 million US$, while imports from the EU represented 2,318 million US$. The trade of the main
products is structured in the graphs that follow.
Moldova offers a large range of agricultural products,
such as fruits, vegetables, grains and livestock. The
main products in the grain group are wheat, barley,
corn and rape seeds. The main products in the Moldavian livestock sector are poultry, pork and beef.
Poultry, pork and beef production in 2013 was 164
thousand tons.
Main arable products are: winter wheat, spring and
winter barley, oats, soya, peas, sunﬂower seeds,
9%
Food and
live animals
17%
41%
7%
16%
Other
10%
Imports from EU countries
Fruit production concentrates on: apples, plums,
sweet and sour cherries, pears, peaches & nectarines, quinces, apricots, soft fruit, walnuts, table and
technical grapes.
Other
28%
Machinery
and transport
equipment
20%
Manufacturing
goods classified
chiefly by material
Food and
live animals
1%
Beverages
and tobacco
2%
Crude materials,
inedible,
except fuels
16%
Mineral fules,
lubricants and
related materials
17%
Animal and
vegetable
oils, fats
and waves
In 2013 the agro-industrial activity currently accounts
for more than 17 percent of GDP.
At the same time, agriculture constitutes the most important sector of the national economy, using over 27
percent of the country’s labor force.
2. Domestic Sector Overview
Agriculture has always been one of the leading sectors
in the Moldavian economy, largely for natural reasons:
the rich soil resources, biological diversity, good climate and geographical conditions. There is also a tradition of hardworking farmers and, more recently, private entrepreneurs interested in investing in Moldova’s
agriculture. Agriculture has an important impact on the
social and economic development of Moldova since
it meets the majority of the population’s food requirements domestically and prevents Republic of Moldova
from being dependent on international sources and
also supplies the raw materials of other sectors dependent on agriculture.
Moldova has exceptional resources that are highly favorable to agricultural production. Its black, fertile soil
is ideal for growing corn, fruit and vegetables. Traditionally, the agriculture and processing industry represented the main branches of the national economy,
placing Moldova among the main suppliers of agricultural products and foodstuffs on the huge ex-USSR
market.
5
Agriculture represents the dominant land used in
Moldova.By far the most signiﬁcant land used is
arable land for annual crop production. Much of
this arable land sits on highly fertile and productive
black chernozem soils, which cover 75 percent of
the country, especially in the northern districts. High
quality soil resources, along with various microclimates, support a wide array of annual and perennial
crop production across the country.
The major advantages of doing agriculture in
Moldova are:
Favorable geographical location and climate, it is possible to grow early varieties of
vegetables, which is a competitive advantage for Moldova. The country has moderate
continental climate with short and relatively
mild winters and long summers. Moldova
has good humus soils and sufﬁcient water
resources.
Moldova’s population accumulated afﬂuent
experience and knowledge in growing high
value crops such as: fruits and vegetables,
tobacco, as well as in viticulture and wine
production.
The fertile soil and adequate labor force are able to
ensure efﬁcient specialization in growing products
for export with high proﬁtability and productivity.
2.1 Major Agricultural Products
With its rich soil, vast arable land and favorable climate, Republic of Moldova offers a wide range of
agricultural product groups including, fruits, vegetables grains and livestock.
Global agricultural production in current
prices, millions lei
2010
Crop
production
Animal
production
2011
2012
2013
13 616 15 751
11 968 16 212
5 786
7 529
6 347
7 810
Source: National Bureau of Statistics
Fruits, Vegetables and their Processing
Fruit-growing represents one of the main strategic
branches of the national economy, accounting for
around 40 percent of the agricultural production
value. Moldova is a net exporter of fruits and from
6
2003 a net importer of vegetables. With vegetables,
however, being a net importer is due to the off-season import of products that are grown seasonally
(May- November) in Moldova. The local production
and marketing season could be extended to provide more competition to imports over a greater
time period.
The market structure for fruits and vegetables in
Moldova includes the following distribution channels: approximately one hundred open air markets,
four wholesale markets, one hundred supermarkets,
and a myriad of small kiosks. In addition there is
HoReCa (Hotels, Restaurants, Cafes, the foodservice sector) that buys directly from the open air and
wholesale markets as well as directly from growers
and retailers. Besides those commercial channels,
a large portion of rural households consume and
preserve their production for their own consumption
or informal exchange with their neighbors.
Ofﬁcial governmental statistics of fruit and vegetable consumption (including potato and melons) per
capita in kg for the last 3 years are presented below.
It draws a picture of a relatively stable consumption
pattern with some small variations from year to year.
Total production of vegetables and fruits,
thousands of tons
Vegetables
Fruits
2010
341
322
2011
362
378
2012
231
380
2013
292
415
Source: National Bureau of Statistics
Fruit and Vegetable Consumption (Including
Potatoes and Melons) per capita in kg
Quantity
2010
208
2011
218
2012
214
Source: National Bureau of Statistics
Overall Moldova has very good conditions for producing horticultural crops. Ofﬁcial statistics in 2013
indicated that the total area of fruit and nut plantations is 136 thousand hectares including 121
thousand hectares of fruit, 14 thousand hectares
of nuts, and 1 thousand hectares of berry bushes,
which, combined account for about 5.4 percent of
agricultural land area. The main fruit planted is apples, covering approximately 64 thousand hectares,
followed by stone fruit with 40 thousand hectares
of mainly plums and cherries, and table grapes with
20 thousand hectares. The average annual area
of planted open ﬁeld vegetables is 33 thousand
hectares and the protected area (greenhouses) for
growing vegetables has a surface area of 550 hectares.
300 000 tons per year
Geographically the main zones for production of apples and potatoes are in the Northern part of the
country. Plums mainly are produced in the Central
part, peaches in the South and table grapes in the
Southern and central areas. Vegetable production,
greenhouse and open ﬁeld are scattered throughout
the country, based on water accessibility and soil
quality.
Fruits – total annual production is about 415 thousand tons, with apples the 1st most important crop
accounting for a minimum of 60 percent of total production (circa 307 thousand tons depending on the
year). Plums are the second most important crop
with annual volumes of around 56 thousand tons
followed by cherries (7 thousand tons), peaches (17
thousand tons) and apricots (5 thousand tons). Approximately 50 thousand tons of table grapes are
produced annually.
Vegetables – annual production totals 292 thousand tons excluding potatoes, which alone account
for another 240 thousand tons. The main vegetable crops produced in open ﬁelds are tomatoes (52
thousand tons), cabbage (30 thousand tons), onions (52 thousand tons), peppers (16-45 thousand
tons), cucumbers (24 thousand tons), pumpkins
(41 thousand tons), carrots (20 thousand tons), red
beets (14 thousand tons) and garlic (10 thousand
tons) with averages ﬂuctuating by 10 percent year
by year. In greenhouses, total production approximates 50 thousand tons of vegetables.
Vine and wine. Wine-making is an essential branch
of the economy. The share of viticulture and winemaking in global agricultural output is about 15 percent and respectively 23 percent from the total agro
food export.
240 000 tons per year
140 000 ha in 2013
In 2013, the vineyards covered a total area of
140 000 hectares. About 31 500 hectares of wines
were planted during 2002-2011, over 95 percent of
the areas being privately owned. The existing wine
production companies have a wine grape processing capacity of 1 million tons and storage of wines
over 700 million litres. Over 60 percent of companies processing grapes are equipped with modern
7
machinery and technology. Secondary wine units 14 000 ha in 2013
have been reassembled almost entirely with modern
bottling lines. The volume of grape processing and
wine production from raw material is maintained at
the level of 360 000 tons and approximately 250
million litres of wine. Exports progress depends on
the markets. Total exports registered in 2013 value approximately 150 million USD because of lower
exports to Russia.
Walnut production and processing
According to the International Trade Centre in Geneva, Moldova is one of the largest exporters of
walnuts to Europe, after USA, Mexico and China.
Walnuts are grown on 14,000 hectares, an area
that has been consistently expanding. Average
productivity varies from 2 to 3 tons per hectare
depending on the variety and climatic conditions.
Walnuts plantations have registered a rapid growth
since the year 2000 from an area of 4000 hectares
and reaching an area of 14 000 hectares in 2013.
Thus, the amount of exports grew from 39 million
USD in 2007 to 98 million USD in 2013.
Some of the key exporters and processors of products destined for the EU markets are:
• Reforma Natural Fruit and Nuts (a German
investment operating in Moldova in walnut
export),
• Monicol (processor and exporter of dried
fruit and walnut kernels),
• VM Plumcom (processor and exporter of
dried fruits), and
• Prometeu-T (the major processor and exporter of walnut kernels in Moldova),
• AMG Kernel Group Soroca (producer and
exporter of walnut kernels).
Production of walnuts, thousands of tons
Walnuts
2010
12
2011
14
2012
9
Dried fruits production
Grains
The Moldovan dried fruit sector includes a few large
and medium sized companies and a larger number
of smaller companies, all competing amongst each
other. Over the past three years Moldova produced
2 000 - 3 500 tons of dried fruits (mostly plums,
but also apples, cherries, pears, etc.) per year
depending on the growing conditions and availability
of raw materials. Export levels are usually about
70 percent of production. The EU absorbs about
80 percent of Moldova’s dried fruit exports; CIS
countries, primarily Russia, Belarus and Ukraine,
accounting for the remaining 20 percent.
The cereals sector has a vital importance for the
country. The main crops cultivated in Moldova include wheat, barley and corns. The majority of products produced within this sub-sector are provided
for the domestic market. The main trade markets
are Ukraine, Switzerland, Puerto Rico and Romania.
The majority of products manufactured within this
sub-sector are provided for the domestic market,
except for small/minor quantities of biscuits, which
are exported. Although Moldova is an important
producer of grains, with a wheat yield of 2.87 tons
per hectare in 2013, it is still lagging behind the EU27 average yield of 5.66 tons per hectare. The main
reasons behind this deﬁciency are: the production in
smallsized farms and the inefﬁciency in input usage.
2013
13
Source: National Bureau of Statistics
≈ 4 000 tons in 2010-2013
Production of wheat, barley and corn, thousands
of tons
Processing
Annually, approximately 9 percent of all vegetables
and 45 percent of all fruits are processed. The total
volume of fruits and vegetables that are processed
are approximately 230-280 thousand tons per year.
Six companies (Orhei-Vit, Alfa-Nistru, Natur-Vit, Natur Bravo, Rozmiar, Floresti) export a diverse range
of products, including apple juice (clariﬁed and with
pulp), fruit nectars, fruit drinks, and preserved fruits
and vegetables. Canned fruits and vegetables are
the most signiﬁcant export volumes including peas,
corn and whole tomatoes. Additional processed
items are tomato pastes and ketchups, purees for
babies, jams, preserves and specialty items. More
than 90 percent of production is destined for export. CIS countries remain Moldova’s biggest export
market for processed fruit and vegetable products
accounting for 70 percent in total, including Russia
(38 percent) and Ukraine (9 percent). Other European countries account for the remaining 30 percent
of exports, mostly in the form of semi-ﬁnished products.
Production
of wheat
Production
of corn
Production
of barley
2010
2011
2012
2013
744
793
496
1008
1420
1468
572
1419
208
198
118
219
Source: National Bureau of Statistics
2.87 tons per hectare in 2013
Just one tenth of cereals are milled, the rest being
used as fodder. Around one fourth of milk is processed and less than 10% of meat and pulses.
Most sugar beets are processed, as are 70% of oil
crops.
8
9
Livestock
There are five certification
bodies. What is striking is the
high level of government support, surpassing even many
Western European governments and featuring unique
interventions such as government support for marketing 20
percent in value of domestic
sales.
Between 1995 and 2010, cattle livestock decreased
by 56%, pig production by 45%, and sheep and
goats by 35%. The fall in livestock numbers was
the consequence of inefficient restructuring of large
animal and bird farms and also the consequence of
a lack of investment funds.
Livestock production in Moldova is very sensitive to
climate changes, mainly through a lack or shortage
of fodder.
Moldova is importing approximately 60 percent of
its consumption of dairy and beef products with
only 40 percent coming from domestic production.
Pork is the most extensively produced type of meat.
In particular, pork is one of the most popular meat
types for Moldovan customer since it is much more
affordable than beef. Moldova’s pork production
was 45 thousand tons in 2008 and increased by 85
percent in 2012, reaching 83 thousand tons.
Livestock by categories of producers (thousands capita)
2011
2012
2013
Cows
154
144
134
Swine
479
439
410
Sheep and goats
906
838
824
The Republic of Moldova
holds many of the various
prerequisites necessary for
organic agro-food production
development. These include
the following: favorable conditions for the cultivation of a
large spectrum of ecological
and organic value-added agricultural plants (vegetables,
fruits and vines, essential and
oleaginous crops, etc.); good
ecological soil conditions,
mainly on large reduction over
the last 10 years of chemicals
used in agriculture; protection
of agricultural plants against
diseases and pests, which can
Evolution of organic surfaces (hectares) (2003-2013)
ha
70 000
Horses
52
50
47
Source: National Bureau of Statistics
2.2 Organic Agriculture
Currently, sales of organic processed foods are growing in Western Europe and now totals 23.8 billion EUR.
Turning production over to organic products might revitalize the Moldovan food processing sector. Organic agriculture demands considerable manual work and non-use of chemicals. The governmental institutions are fully
aware of the enormous export potential of organic agricultural and food products.
Moldova is the country in the Eastern Europe, Caucasus and Central Asia region (EECCA) with the most developed organic sector, both commercially and in terms of policy and government involvement. The organic sector
does not have a long history, but combined efforts by NGOs, private investors and the Government of Moldova
has led Moldova exporting to the European Union around 81 thousand tons of organic products at a value of
US $32 million in 2013.
The area of certiﬁed organic land represents almost 2 percent of the total arable area. Moldova has had an
organic marketing law and the implementing regulations since 2006.
10
61280
60 000
50 000
40 000
32450
30 000
51681
22102
16585
20 000
7345
10 000
80
168
250
715
2004
2005
2006
11755
0
-10 000
-20 000
2003
2007
2008
2009
2010
2011
2012
2013
Source: National Bureau of Statistics
11
be ensured through the application of integrated organic systems and crop rotation etc.
Legislation has recently been harmonized with EU requirements, in
particular there were regulations
adopted on ecological principals
and methods of processing organic food production, inspection and certiﬁcation system in
the ﬁeld and organic food products import and export. There are
168 companies registered at the
Ministry of Agriculture and Food
Industry owning lands with ecologic production.
Import and Export of Livestock
(thousands USD)
Import and Export of vegetables, fruits, grains
(thousands USD)
470 000
130 000
107 000
360 000
340 000
95 000
38 000
38 000
204 000
200 000
169 000
27 000
2010
2011
Import
Export
The market of Moldovan organic
products is mainly the European
Union. 95 percent of vegetal organic products (cereals, oilseeds
and protein, berries and herbs)
are exported to Germany, Switzerland, Netherlands and Great
Britain. In 2006 the export volume
of organic products was 4165
tones, in 2013 it raised up to 80
thousand tones.
2010
2012
Export
Import
2011
2012
Import
Export
30
Top trading partners for exports, %
Top trading partners for exports, %
11.6
9.1
Export of organic products (tons) (2003-2013)
90 000
80817
80 000
3.1
3.5
4.5
9.1
5.6
1
70 000
60 000
50 000
40 000
32860
30 000
18650
20 000
10 000
0 tones
1373
2486
3675
2003
2004
2005
Source: Ministry of Agriculture
12
4165
2006
6750
2007
11600
2008
14500
15400
2009
2010
2011
2012
2013
Austria
Switzerland
Kazackhstan
France
Germany
Romania
Ukraine
Belarus
Russia
Source: Ministry of Agriculture
13
2.3 International Trade
The agro-food trade had a positive balance of $204
million in 2013 and the share of agrifood exports in
total exports is 41 percent (2013), while the share
of agrifood imports in total imports stands at just 14
percent.
The main exports are wines and spirits, fruits and
nuts, and oilseeds. The largest deﬁcits are generated by tobacco, ﬁsh products, ﬂour, dairy, pastas,
chocolate and meat.
The volume of agrifood imports has steadily increased in the last 3 years, from $591 million in
2010 to $688 million in 2011, to a record $783 million in 2013.
In 2013 agricultural and agro-food products were
exported for a total value of US$ 988 million, which
is by US$109 million more than in the previous year.
Within the total export of the Republic of Moldova
in 2013 the largest share is held by foodstuffs, alcoholic drinks, tobacco and tobacco articles, which
account for 60 percent (US$ 607 million).
Plant products totaled US$ 470 million or 51.3 percent of total exports.
Sun-ﬂower seeds, walnuts, apples, grapes and soy
beans account for the largest share.
Animal oils and fat forms totaled US$ 78 million or
8.44 percent of total export.
Exported livestock products totaled US$ 38 million
or 4.1 percent of total value.
Over 2011, the Republic of Moldova imported agrofood products in a total value of US$ 700 million,
surpassing by US$ 96 million, the 2010 indicator.
Within the total volume of imports, foodstuffs,
alcoholic drinks, tobacco and tobacco products
prevail, accounting for 51.73 percent representing
US$ 360 million, growing by US$ 47 million from 2010.
Imported plant products totaled US$ 200 million,
accounting for 30 percent of total imports.
Animal and plant oils and fat imported in the Republic of Moldova constitute 3.6 percent of total imports
and amount to US$ 25 million.
14
Imported livestock products totaled US$ 110 million, or 15.6 percent of total import value.
About 95 percent of the alcoholic products are exported to foreign markets to around 55 countries.
2.4 Investment Opportunities
I. Viticulture and Wine industry investment
opportunities
1. Overview:
• Czech Republic – 14.2 percent
Wine industry represents an essential branch of the
Moldovan economy. Approximately 15 percent of the
national annual budget is formed of incomes generated by viticulture. The total area of wine-producing
plantations is 136 thousand hectares of vineyards,
including 128 thousand hectares of yielding plantations. Over 95 percent are under private ownership.
The annual vintage is 400 – 500 thousand tons. The
Moldovan viticulture can be characterized as including
a large variety of species, of which 90 percent represents European ones. Around 10 percent of produced
wine is consumed by the domestic market and 90 percent is exported, which amounts to US$ 148 million.
• Romania – 12.6 percent
2. Advantages:
Main markets:
Commonwealth of Independent States (CIS)
• Russian Federation – 39.7 percent
• Belorussia – 32.6 percent
• Ukraine – 11.7 percent
• Kazahstan – 11.4 percent
European Union (EU)
• Poland – 38.3 percent
• Germany – 19.1 percent
• Latvia – 3.2 percent
• UK – 2.0 percent
Other countries
• US – 14.2 percent
• Israel – 51.4 percent
To achieve stable growth in agro-food exports, there
is a need to diversify and increase access to high
value markets. Increasing exports to the EU would
help achieve this diversiﬁcation and provide access
to higher-value markets. Meeting the requirements
of global food supply chains is the challenge facing
the agro-food sector and at the same time an opportunity for international investors.
Geographical area: Natural factors of Moldova as
a combination of a unique microclimate (sun, rain,
and temperature), fertile soil, favorable geographical
position on the same latitude as France and Northern Italy.
Traditions: Viticulture and winemaking is an activity,
that has been practiced in Moldova over millenia.
Novel variety: The wine produced in Ialoveni is actually a Xeres wine, Prometheu is in fact a Porto
wine, the Moldovan equivalent of Cahor are red and
rosé dessert wines; “Pastoral,” “Bouquet of Moldova “ is made by the same technology as vermouth.
Unique collection: The collection of wine from
Milestii Mici was included in the Guinness Book at
the category “The largest collection of quality wines
in the world” (1.5 million bottles).
Quality: Distinct qualities: taste, ﬂavor, properties,
varieties.
3. Investment opportunities:
• Implementing product’s quality and safety
standards in wineries
• Re-equipment of wineries
• Installation of seven zone laboratories to determine products’ safety
• Installation of seven zone laboratories to determine products’ safety
• Vineyard replanting
15
II. Fruit and vegetables sector
Renovation and operation of exiting farms.
1. Overview:
The Republic of Moldova used to have a very
strong livestock sector in the former USSR. Existing infrastructure allow investors to start operations in a very short time.
Fruit-growing represents one of the main
strategic branches of the national economy, accounting for around 40 percent
of the agricultural production value. The
area under fruit plantations in 2013 totaled 122000 hectares. Regarding the
vegetables production, the annual harvest totals, on average, around 370
thousand tons. Within the total volume
of vegetables, 4.7 percent of vegetables
are exported as fresh vegetables, 8 percent are used as raw material within the
processing industry, and 87.3 percent
are traded in fresh condition in the domestic market. Vegetables are exported into 23 countries of
the world.
2. Investment opportunities:
• Planting new orchards
• Fruit and vegetables storage
• Fruit and vegetables processing: Equipment
and technology are required for storage, packaging and long distance transportation of fresh
products; drying; instant freezing; canning; and
the production of ingredients and additives.
III. Livestock sector
1. Overview:
Cattle feed mills.
Cattle feed industry is now emerging but it still
produced below potential. The demand for
livestock feed of various types (dairy, fattening,
bulls, etc) is definitely going to increase, thus
cattle feed industry will probably grow.
Integrated meat production and processing.
Increasing productivity, especially in the small to
medium scale production systems, is currently constrained by lack of skills, knowledge and appropriate
technologies compounded by insufficient access to
markets, goods and services, and weak institutions.
The result is that both production and productivity
remain below potential.
2. Advantages:
• Strong local and especially regional demand
growth.
• Potential to use existing infrastructure.
• Easy access to the forage base.
• Tradition in livestock sector.
• Potential to export to Middle East markets (e.g.
Saudi Arabia, UAE)
Livestock is an important branch of agriculture,
which is focused on breeding, reproduction, improvement of breeds and exploitation of agricultural animals. Growing and improvement of animal
breeds is necessary to ensure the population with
animal products, of the food industry and light industry – with raw material, of the agriculture – with
organic fertilizers.
• Large and growing local market with increasing
animal product needs
Livestock sector consists of the following main
branches: breeding and fattening cattle, pigs, sheep
and goats, poultry and horses.
Setting up new large breeding and fattening
farms.
Today, Moldova is importing approximately 60 percent
of its consumption of dairy and meat products with
only 40 percent coming from domestic production.
16
Meat consumption is increasing rapidly. The
only way to meet the demand of pork and beef
in the country is conversion to feedlot fattening. Thus feedlot fattening offers a good investment opportunity. Furthermore, establishment
of slaughterhouses and model butcheries with
grading system and commercial cuts will add
value. Moreover, there is tremendous scope and
need to establish slaughterhouse by-product
plants for further profitability.
3. Other strategic sectors for potential
investment
a. Walnut: Moldova is one of the largest European
exporters of walnuts shelled and nut kernel accounting for a total volume of 18 thousand tons
and amounting to Euro 29.8 million. The walnut
growing area constitutes around 9000 hectares,
and is constantly expanding over the last years,
especially through plantation of walnut industrial
orchards. The sector has an enormous non-used
potential in terms of extension of orchards’ areas.
To make this potential efﬁcient and operating, an
adequate storing and processing infrastructure, as
well as relevant market diversiﬁcation are needed.
b. Sugar Industry: The complex includes two main
segments – sugar beet producers and producers and traders of sugar beet seeds. Currently, sugar beet in Moldova is processed by two
companies – JSC “Südzucker Moldova” and
“Magd-Vest”, which supply sugar in the domestic market; the sugar surplus is exported. The
annual domestic market demand totals around
85 – 90 thousand tons of sugar; the country export potential is around 50 – 60 thousand tons.
c. Oleaginous Plants and Industry: The main oleaginous plants in Moldova are the sunﬂower, soy and rape. The overall volume of these
plants in 2011 totaled 530 thousand tons, 382
thousand tons, 111 thousand tons respectively. The oleaginous sector includes around 542
small- and medium-sized enterprises (oil mills),
which annually process approximately 55 – 60
thousand tons of sun-ﬂower, partially satisfying
the domestic market demand. The JSC “Floarea-Soarelui” is the main oil producer (of both
sun-ﬂower and soy oil), having a production capacity of 262 thousand tons per year.
d. Organic farming: The rich soils, and skilled, relatively cheap and available labor present opportunities to take advantage of the increase in demand for organic farming products in western
markets, and this provides a huge opportunity
for investment in this area.
• Fragmented and inefficient structure of current
livestock producers
• Breed optimization and animal feed are key factors to be solved for sustainable livestock
Investment opportunities:
Large farms can serve as primary source of sale
of genetically superior animals for new farms,
dairy colonies (which have high turn over of animals) and export.
17
IV. Why invest in the agricultural sector in
Moldova?
Large popularity of Moldovan brands in CIS
markets: high quality of Moldovan products recognized in all former USSR regions;
1. Arguments that make Moldova attractive
for investment
Ecologically pure products in Moldova: the
products in Moldova have remarkable gustative
quality provided at exclusively accessible prices;
The main advantages:
Encouraging investments through a subsidy
fund, which is very competitive and covers the
entire spectrum of agricultural activities.
Moldova’s location: access to EU and CIS markets (free trade regimes and geographical location);
The fertile soil and favorable climate conditions:
the main conditions required to develop intensive agriculture;
The production capacities of the agro-industrial
complex are located at short distance from raw
material location and are placed uniformly within
the country territory;
Extremely competitive labor force and availability of qualiﬁed staff;
Potential to develop the local market;
Approximative price per hectare of arable land in some European countries (EUR)
Ukraine
Chech Republic
800
Subsector
FDI Origin
1 600
5 500
Comments
Sauron
Grapes and fruit
nursery
USA
Table grapes and stone fruit seedlings. First one
to introduce seedless table grapes to the local
market
Interconsult MD
Strawberry
production
The Netherlands
Commercial scale strawberry growing operation
using
Reforma
Fruit’n’Nuts
Dried fruit and
vegetables
Germany
Largest exporter of dried fruit and vegetables
Natur Bravo
Fruit and vegetable
processing
USA
Canning and juice making business operating
three processing facilities
Cardico
Walnuts
Greece
Part of a larger European
processing chain
Pinto-Mold
Walnuts
Austria
Processor and exporter
Bienenhaus
Honey
Germany
Modern honey processing and export facility
Lactalis-Alba
Dairy
France
Part of a larger dairy chain in Europe and CIS
Südzucker
Moldova
Sugar processing
Germany
Largest sugar maker in the nation with 3 different
processing facilities around
the country
Kelly Grains
Elevator
Grain growing
and processing
USA
Grain storage and export
Floarea
Soarelui
Oil press
USA
Largest producer of sunflower oil in the country
holding a significant share of the local market and
considerable export operations.
Agrimatco
Input
supply
Middle East
Member of an international
input supply business
1 500
Romania
6 000
Slovakia
14 000
Netherlands
2 000
18
Name
Possibility of setting up joint ventures;
High efﬁciency of a proﬁtable agro-industrial
sector, which signiﬁcantly exceeds the efﬁciency
ratio of neighboring countries;
Republic of Moldova
Example of foreign investors in Moldova
4 000
6 000
8 000
10 000
12 000
14 000
19
3. Example of a Success story
Millstream dairy
Südzucker
Südzucker AG is a very well known German company. With a production of some 5 million tons,
Südzucker Group is the market leader in the sugar
sector. The Group’s European factories are based
in France, Belgium, Germany, Austria, Poland, the
Czech Republic, Slovakia, Romania, Hungary and
Moldova. It operates 43 sugar factories and 2
reﬁneries.
In 2001, on the basis of the earlier purchase of Moldovan sugar processing facilities in Drochia, Alexandreni and Falesti, Südzucker-Moldova JSC was
established. Südzucker-Moldova JSC produced
83,000 tons of sugar last year, 56 percent of the
production of the Moldovan sugar sector. In monetary terms, Sudzuker’s annual turnover in Moldova
grew to € 37 million during the last year of operation. When Südzucker AG came to Moldova, the
sugar industry was in such a dismal state that many
questioned whether Moldova even needed a sugar
industry. Before investing, the company established
that there was a need to introduce new management systems into the industry. It allocated the management of key processes to several professional
managers who valued openness and transparency
–values the company prizes highly. The company
set constructive relations with the public, growers
and government authorities contributing to serious
changes in legal frame conditions of the industry.
20
Soon after Südzucker’s arrival, thousands of people
obtained stable employment. Understanding Moldovan realities, Südzucker undertook managerial
and organizational steps to make sure its investments reaped proper results within optimal time
frames. In its effort to increase the quality of the raw
material supplies, Südzucker completely changed
the system. It established a raw material supply development division to help growers. The division organizes regular workshops and ﬁeld-days where the
company and its suppliers discuss methods of obtaining optimal yields. As a result of this approach,
local growers have changed to new varieties of sugar beet and learned new pest management, maintenance and harvesting technologies. Regardless of
the fact that energy is slightly cheaper in Ukraine
and Russia, Südzucker has managed to make the
product competitive in these markets. In a little over
ﬁve years, the company invested over €12 million
in renovating production, marketing and institutional
facilities.
In 2010, Millstream started to develop a plan for setting up a dairy farm in Moldova. Years of preparation
have finally led in 2013 to the start of a dairy farm
with the purpose to have 250 cows on average at
full production.
In the village Goleni (in the region of Edinet in the
north of Moldova) the yard and buildings of an old
state farm was purchased, with the objective to
develop a modern dairy farm. For this purpose, a
totally new dairy stable has been constructed with
a local construction company. This new stable is
based upon dutch design, machinery and equipment. Besides the farm and constructed buildings,
Millstream Moldova has 250 ha of agricultural land
at its disposal for growing crops to feed the cows.
At this moment the farm has 160 cows with the plan
to grow to 250.
Main purpose for the dairy farm is to provide high
quality milk during every month of the year. This high
quality milk is collected by the major dairy producers in Moldova.
21
Kaluga, RU - 1063km
Kiev, UA - 385km
Mohyliv-Podolskyi, UA - 0.5km
Vinnytsa, UA - 120km
MD: Otaci
UA: Mogiliov-Podolisc
P63
Mohyliv-Podolikyi
Otaci
Ocnita
M14
UKRAINE
M12
FEZ Otaci Business
MD: Unguri
UA: Bronnita
Otaci
Ocniţa
Briceni
Nistru
Dondușeni
Prut
Edineţ
Briceni
Soroca
Nistru
M14
Prut
Edinet
Donduseni
Cupcini
Baia Mare, RO - 443km
Bototsani, RO - 55km
Suceava, RO - 97km
MD: Costesti
RO: Stinca
M05
Soroca
M4
M2
Floresti
M14
M14
Șoldănești
BĂLŢI
M13
Sîngerei
Rezina
Fălești
M4
Telenești
M13
Orhei
Telenesti
M05
M2
Ungheni
Dubasari
M14
Straseni
Iasi
Nisporeni
FEZ Ungheni Business
Criuleni
M2
M21
Cricova
FEZ Expo Business Chisinau
M14
Ialoveni
Hincesti
Ialoveni
M4
BENDER
(TIGHINA)
M3
M14
Căușeni
Slobozia
M05
24
M3
Odessa
Nistru
Leova
Basarabeasca
Cantemir
Pru
t
Basarabeasca
Cantemir
D
MD: Basarabeasca
UA: Serpniovoe 1
COMRAT
FEZ Tvardita
M3
M3
Giurgiulesti
Da
Galati
vs
ky
Li
ROMANIA
m
an
vs
ky
Belgorod Dnestrovsk
Li
m
an
Taraclia
Vulcănești
FEZ Valcanes
lia
Ki
Kilia
ch
an
Br
Braila
Sulina Branch
la
ke
eor
ghe
BLACK
SEA
Bra
nch
Glass manufacturing
Carpet
Garment & Knit wear
Cardboard manufacturing D
an
Braila
ub
e
Metal processing
Furniture
Gravel & stone extraction
Seat covers
Energetics
Chocolate
Tulcea
Bakery
Wires and harnesses
Cigarette and tobacco
Rubber & Plastic injection
Ceramic tiles
Dairy products
Steel casting
Alcohol & bioethanol
Meat processing
Pumps
Railway
Beer
Construction material
Cannery
Brandy production
Electronics
Sugar
Pharmaceuticals
Textile tapes
Buzau
Water bottling
ch
an
Izmail
Br
Food products Kilia
Winery
Sulina Branch
Sf.
lake
m
Gh
Kilia
Galati
Shoes
Razim
21
Sulina
Istambul
Sf.
Consta
nta
Tulcea
zi
Bolgrad
Focsani
LEGEND
MD: Vulcanesti
UA: Vinogradovca
Ra
ro
Ceadîr-Lunga
FEZ Taraclia
MD: Giurgiulești
Izmail
UA: Reni
st
Cahul
MD: Mirnoe
UA: Tabachi
be
22E
nu
Bucharest, RO - 255km
Constanta, RO - 215km
Craiova, RO - 481km
Galati, RO - 10km
Pitesti, RO - 370km
Timisoara, RO - 697km
MD: Giurgiulesti
RO: Galati
ne
Tvardita
Bolgrad
Focsani
D
COMRAT
MD: Ceadir- Lunga
UA: Novie Troiani
Cahul
FEZ Giurgiulesti
International Free Port
22
ro
Ceadir-Lunga
Taraclia
Buzau
MD: Tudora
UA: Starokazacie
st
Belgorod Dnestrovsk
M3
ROMANIA
ne
Odessa
Nistru
Leova
Odessa, UA - 77km
MD: Palanca
UA: Udobnoe
Stefan Voda
Ștefan Vodă
Cimișlia
Causeni
Cimișlia
Anenii Noi
Hîncești
TIRASPOL
Anenii Noi
Arad, RO - 654km
Bucharest, RO - 407km
Craiova, RO - 641km
Pitesti, RO - 531km
MD: Leuseni
RO: Albita
CHIȘINĂU
Nisporeni
M4
CHIȘINAU
FEZ Balti/ Subzone nr.4/ Straseni
Iasi
Grigoriopol
Pru
t
24C
Criuleni
Strășeni
M21
Ungheni
Dubăsari
Călărași
Orhei
Iasi, RO - 24km
MD: Sculeni
RO: Sculeni
Calarasi
BMO Grup
Rezina
Ribnita
Singerei
FEZ Balti
Glodeni
BALŢI
Falesti
Costești
M4
Soldanesti
M2
Florești
FEZ Marculesti hub airport
Rișcani
24D
Drochia
Rîșcani
Drochia
Glodeni
UKRAINE
Mohyliv-Podolikyi
Sulina
Gh
eor
ghe
BLACK
SEA
Bra
nch
Istambul
MD: Briceni
UA: Rososeni
SUCCESS STORIES &
AGRO-INDUSTRIAL COMPETENCE
M05
FREE ECONOMIC ZONES
Chernivtsi, UA - 105km
Ivano-Frankovsk, UA - 215km
Katowice, PL - 768km
Lviv, UA - 341km
Tychy, PL - 771km
MD: Criva
UA: Mamaliga
H10
M12
M21
Consta
nta
H03
23
The Moldovan Investment and
Export Promotion Organization
(MIEPO), in cooperation with
the Prime Minister’s Office, is
the prime source of information
and assistance for potential investors.
Contact us:
www.invest.gov.md
[email protected]
port existing investors in extending their operations.
Our team consists of permanent investment attraction
staff, sectorial consultants, as
well as regional officers. Combining our experience, we are
able to provide you with information relevant for your decision making, as well as links to
businesses and government.
We provide tailored services for potential investors
throughout the investment decision process. We also sup-
“ We picked Moldova as an investment destination due to the benefits the Government offers to the foreign investors, the costs of production and the strategic
market for us.
Main purpose for the dairy farm is to provide high quality milk during every month of the year.
Favorable climate and geographical conditions are factors that help us achieve our goals.”
Jim Boet
Millstream Dairy
“ Moldova works hard on encouraging foreign companies to review it as a possible
investment option.
Moldova offers competitive financial support for the investments into agriculture
sector and very cooperative state institutions, and, what is most important for us, a market with a high potential”
Perebinos Ecaterina
Pukoven
2000km
Sankt Petersburg
Stockholm
1500km
Katowice
100
0km
m
500
km
Lviv
Bratislava
Esztergom
Gyor
Graz
km
Timisoara
0
50
10
km
00
m
km
Pitesti
Craiova
Valls
km
Istambul
Bursa
Ankara
15
00
2000
Sarajevo
1500
k
Turin
1000
km
Pecs
Novo Mesto
Zaporoje
500k
m
Balti
MD
Chisinau
Oradea
500km
Munchen
0k
Sindelfingen
Kiev
50
Mlada Boleslav
Pamplona
km
500km
Leipzig
Kolin
00
Poznan
Wolfsburg
150
0km
10
200
0km
km
Tolyatti
Bremen
Genk
20
00
km
1000km
1500km
24
km
00
15
Kaluga
Minsk
Glewice
Paris
00
1000km
Amsterdam
20
Nijnii Novgorod
Moscow
Copenhagen
Jerusalem
Cairo