Export opportunities of the Export opportunities of the agri-food sector of the agri-food sector of the Republic of MoldovaRepublic of Moldova

24 June 2010, Chişinău24 June 2010, Chişinău

Agri-food sector in GDP – Agri-food sector in GDP – 15 15 %; %;

Export of the agri-food products consists – Export of the agri-food products consists –

about about 50 % from the total export;50 % from the total export;

Population involved in agri-food sector – Population involved in agri-food sector – 33%.33%.

What means agri-food sector for What means agri-food sector for MoldovaMoldova

What do we exportWhat do we export

Wines and spirits;Wines and spirits;

Fruits;Fruits;

Vegetables;Vegetables;

Processed foodProcessed food..

67

33

58

42

74

26

68

32

0

20

40

60

80

100

2006 2007 2008 2009

animal production

vegetal production

Structure of agriculture production (%)Structure of agriculture production (%)

Structure of processing industry production

Cans from fruits and vegetables

10,2%Sugar2,8%Oil

9,3%

Processed cerealse

9,3 %

Meat and meat products 10,2%

Milk products9,3%

Alcoholic beverages

34,5%

Others 14,4 %

Production versus export2009 (th.tones/mil. dal.)

0

100

200

300

400

500

600

Vegetables Fruits Wines Meat Tabacco

Export

Production

Real potential of the Republic of Moldova

(th.tones/mil. dal.)

0

200

400

600

800

1 000

1 200

1 400

1 600

Production 1985

Production 2009

Export 1985

Export 2009

Export of the alcoholic productsExport of the alcoholic products

About 95% of the alcoholic products are exported on the About 95% of the alcoholic products are exported on the foreign markets. foreign markets.

Alcoholic products are exported to around 55 countries Alcoholic products are exported to around 55 countries

Main markets:Main markets:

Commonwealth of Independent States (CIS)Commonwealth of Independent States (CIS) • Russian Federation – 39,7%Russian Federation – 39,7%• BelorussiaBelorussia – – 32,6 32,6 %%• Ukraine Ukraine – – 11,7 11,7 %%• Kazahstan –Kazahstan – 11,4 11,4 %%

European Union (EU) European Union (EU) • PolandPoland – – 38,338,3% % • GermanyGermany – – 19,1 19,1 %%• Czech Republic Czech Republic – – 14,2 14,2 %%• Romania – Romania – 12,6 12,6 %%• LatviaLatvia – – 3,2 3,2 %%• UKUK – – 2,0 2,0 %.%.

Other countriesOther countries• USUS – – 14,2 14,2 % % • IsraelIsrael – – 51,4 51,4 % %

Fruit exports, Fruit exports, mil. USDmil. USD

0

5

10

15

20

25

30

2008 2009

Seeded fruits (apples,pears, quinces)

Stone fruits (apricots,cherries, etc)

Other fruits (strawberries,rasberries, etc)

Vegetables exportVegetables export,, mil. USDmil. USD

Trade regime of the Republic of MoldovaTrade regime of the Republic of Moldova

Export and import activities are fully liberalized, without some Export and import activities are fully liberalized, without some other quantitative restrictions;other quantitative restrictions;

There is not a custom tariffs for the exported goods and services;There is not a custom tariffs for the exported goods and services;

Moldova benefits from Autonomous Trade Preferences in the Moldova benefits from Autonomous Trade Preferences in the bilateral trade with EU from January 2008;bilateral trade with EU from January 2008;

We are part to different international and regional agreements We are part to different international and regional agreements which facilitate the trade between our major commercial partners. which facilitate the trade between our major commercial partners. (Ex. CEFTA agreement, CIS agreements, ATP with EU)(Ex. CEFTA agreement, CIS agreements, ATP with EU)

Export partnersExport partners 2009 2009

Top 9 trading partners for exports: Russian Federation (30%),Belorussia (11,6%), Ukraine (9,1%), Romania (9,1%), Germany (5,6%), France (4,5%), Kazakhstan (3,5%), Switzerland (3,1%), Austria (1,1%),

Export structure by geographical areasExport structure by geographical areas

Quality systems implemented in the Quality systems implemented in the Republic of Moldova Republic of Moldova

HACCP10 Entreprises

GlobalGap7 Enterprises

ISO 54 Industrial enterprises

Analysis of the export with the agri-food Analysis of the export with the agri-food productsproducts

Opportunities Constraints

Fertile soil, good climate conditions and high productivity

Existing quotas in the export with the agri-food products to the EU market

Ecologic and healthy agri-food products

High costs for producers to comply with EU standards of production of animal and plant products

High demand for Moldovan agri-food products on the foreign markets

Vulnerable to international economic and political environment (Russian case from 2006)

Reliable producers and exporters Lack of promotion for agri-food products

Suitable prices Low transfer of new technologies in the sector

How the Ministry will contribute to the How the Ministry will contribute to the diminishing and eliminating existing diminishing and eliminating existing

constraintsconstraints

Negotiation of the Free Trade Agreement with EU;Negotiation of the Free Trade Agreement with EU; Elaboration and discussion of a new marketing concept Elaboration and discussion of a new marketing concept

and strategy for the exports of the agri-food products;and strategy for the exports of the agri-food products; Create necessary infrastructure for businesses to Create necessary infrastructure for businesses to

perform the export to foreign markets;perform the export to foreign markets; Organization of local and international promotional Organization of local and international promotional

events;events; Attract foreign assistance and investments for Attract foreign assistance and investments for

compliance with European norms and standards of compliance with European norms and standards of production; production;

Stimulate the production and export of the High Value Stimulate the production and export of the High Value Agriculture ProductsAgriculture Products

Ministry of Agriculture and Food Industry of the Republic of

Moldova

Tel: +(373 22) 233 427; +(373 22) 232 384 Email: adm_maia@moldova.md

Website: www.maia.gov.md

Thank you for your atentionThank you for your atention!!