Ministry of Agricultureand Food Industry of

the Republic of Moldova

Invest in Moldova – Invest in Region20-21 of February, Chisinau

Agriculture and food industry – opportunities for development in

Moldova

Area: 33,800 km2

Population: 3.58 million

Capital: Chisinau - 717,000 citizens

Climate: moderate winter (Jan. -4 -7°C ),

warm summer (Jul. +25 +28°C)

Agricultural land: 2518,2 thousand ha including:

Arable land: 1833,2 thousand haPerennial plantations: 299,0

thousand ha

Black earth: 75% from total arable land

Agriculture and food industry – General overview

1

Agriculture and food industry – General overview

2005 2006 2007

GDP (%) 100,0 100,0 100,0

Agriculture, hunting and forestry (%)

16,4 15,1 9.9

Share of agriculture in GDP

Share of Food industry sector in the total country’s export

50 %

Employment in agriculture and food industry sector (share from total employed population)

40 %

Share of agriculture and food industry sector in GDP

22 %

2

Trading – agro-food productsMln USD

State Programs and strategies for agro-food sector development

National Strategy for Development 2008-2011

National Strategy for sustainable development ofagricultural and industrial sector for 2008-2015

Government Program for 2005-2009“Country’s modernization and people’s welfare”

National Program “Moldovan village” (2005-2015)

Concept on subsidies in agriculture (2008-2015)

World Bank Reforms’ Program for Economic Growth and Poverty Reduction

3

Over total agricultural production, the plant production dominates the animal production with a share ratio of 70 % to 30 %

Moldovan Food industry –structure

Wine productionWine production 119191

Bakery productionBakery production 5050

Fruit and vegetable processing and Fruit and vegetable processing and canning canning

3535

Dairy productionDairy production 1515

Number of processing companies, by main activities

4

Stable and promising fruit and vegetable processing industry

Strong wine and wine growing industry

5

Wine sector overview

1 million tons /year

25 million dal of wines

191 wineries

65 million dal of wines

95% of the total wine production is export oriented 20 producers of divine and brandy10 producers of sparkling wine3 large wine cellars

Fruits and Vegetables

Fruit Growing - 40 % of the agricultural production value

The Republic of Moldova is one of the largest European exporters of walnuts shelled, accounting for a total volume of 9 thousand tons.

Annual average quantity of production 2000-2006 (thousand of tons )

Fruits (total), including: 417

- seedy species, of which 309

- apples 301.5

- pears 6

- stone-fruit species, of which 90.2

- plumps 51

- cherries 13.5

- sweet cherries 7.3

- peaches 13

EurepGap quality system implemented by

1.JSC “Codru-ST”2.JSC “Agroproduct”3.JSC “Viogen-Grup”4. Ltd. “Podgoreni”

6

Other food industry branches

Fruits and vegetables processing -10,8%

Milk industry – 10,8%

Vegetable oil (sunflower and soy) – 10,2%

Bread and products of panification – 9,6%

Meat and meat products – 8,8%

Sugar industry – 7,6%

Tobacco industry – 5,9%

7

Quality System Implementation

8

International Cooperation

Food and Agriculture Organization (FAO)

Vineyard and Wine International Organization

Sugar International Organization

International Office of Epizootic (OIE)

International Fund for Agricultural Development

United States Department for Agriculture

The United States Agency for International Development

9

Government support to agro-food sector development

The Concept on Subsidies in Agriculture (2008-2015), approved by the GoM on 28th of November 2007

MDL 141 mln. (12.5 million USD$) – targeted to modernize the agricultural sector and promote investments related to fruit-growing planting material and fruit-growing and walnut plantations, acquiring the necessary equipment and tools for rural small and medium enterprises that process, freeze and dry fruits and vegetables, as well for freezing and packing warehouses, agricultural equipment, revitalizing the zoo technical sector;

MDL 129 mln. (11.5 million USD$) – necessary for supplying the agricultural sector with phytosanitary products (pesticides) and fertilizers (mineral fertilizer), promoting insurance services for agricultural production, V.A.T. reimbursement etc.

For 2008 it provides:

10

1. Business agriculture development project, USAID, 19 mln USD, 2004-2009

2. Rural investments and services project (RISP-II), World Bank (IDA), 15 mln USD, 2006-2010

3. Revitalizing agriculture project, FIDA, 15 mln USD, 2006-2009

4. Rural business development program, FIDA, 13,5 mln USD, 2006-2011

5. Assistance for unprivileged farmers 2KR, Japanese Government, 2000-present

6. Food security program, European Commission, 2002- present

7. Food security consolidation in South-eastern European countries in transition – a regional approach to food legislation and control, FAO, 390000 USD, 2004-2007

8. Food security program, European Commission/FAO, 2005-2008

International support to Moldovan agro-food sector

11

Success stories,international awards

1. Euro Market Award – Bruxelles 1994 2. Earth Market Award – Malta 1998 3. IMPEX XIV – USA 1998 4. The International Academy of Confectionary Markets, Moscow 2007

1. Super Grand Prix – International Contest “Gold Gryphon” 20022. Grand Prix – International Contest “Gold Gryphon” 20013. 1996-2003 – 17 Gold medals, 13 silver medals, 3 bronze medals

International Exhibitions Moscow, Barcelona, Paris etc - 5 golden and 5 silver medals

1. Grand Prix – XII International Exhibition “ExpoVinMoldova 2003” 2. 8 Gold medals, 6 silver medals, 1 bronze medal 3. Guinness Book – the largest collection of wines in the world

12

Conclusions

There are various investing opportunities in the agricultural sector:- the set up of joint enterprises in:

Viticulture – new plantations, grape processing;

Fruits and vegetables processing industry - specifically new plantations, freezing and drying, canned products, as well as greenhouses. The factors that benefit such investments in this field are the high level of soil fertility and climate conditions, as well as the qualified labor force;

Zoo technical sector – the high potential of meat and milk processing requires ensuring increased supply of raw materials. Creation of joint production units for bovine and swine growing, meat production and processing etc;

Irrigation systems – high production volumes and intensive agriculture requires modern irrigation systems that would diminish the drought risks and ensure a high harvest;

Ecological agriculture – one of the high priorities is the development of ecological (bio) products. Every year we register a high number of certified ecological products, which in 2007 represented 22.7 thousand tones.

13

Ministry of Agricultureand Food Industry of

the Republic of Moldova

Invest in Moldova – Invest in Region20-21 of February, Chisinau

Ministry of Agriculture and Food Industry of the Republic of Moldova

Tel: +(373 22) 210-752 ; +(373 22) 210-249Email: adm_maia@moldova.md Website: www.maia.gov.md

Thank You for Your attention