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 Moldovas economy. The share of agricultural production
in Moldovas 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 countrys 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 countrys 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.

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 signicant 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 diversication and provide access
to higher-value markets.
Moldova supplies agricultural products in more than
70 countries. Moldovas main trading partners are
the EU and CIS, which together account for 90%
of the countrys foreign trade. In 2012 the Republic of Moldovas 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, sunower 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 countrys 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 Moldovas
agriculture. Agriculture has an important impact on the
social and economic development of Moldova since
it meets the majority of the populations 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.

Agriculture represents the dominant land used in

Moldova.By far the most signicant 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 sufcient water
resources.
Moldovas population accumulated afuent
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 efcient specialization in growing products
for export with high protability 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

5786

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

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.
Ofcial 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. Ofcial 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 eld 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 eld 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 elds 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 uctuating 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

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 Moldovas 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 deciency are: the production in
smallsized farms and the inefciency 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 (claried and with
pulp), fruit nectars, fruit drinks, and preserved fruits
and vegetables. Canned fruits and vegetables are
the most signicant 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 Moldovas 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-nished 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.

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. Moldovas 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 certied 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 certication system in
the eld 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

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 decits are generated by tobacco, sh products, our, 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-ower 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. Viticultureand 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 diversication 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
ros 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, avor, properties,
varieties.
3. Investment opportunities:
Implementing products 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 efcient and operating, an
adequate storing and processing infrastructure, as
well as relevant market diversication 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 Sdzucker 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 sunower, 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-ower, partially satisfying
the domestic market demand. The JSC Floarea-Soarelui is the main oil producer (of both
sun-ower 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.
Moldovas 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 qualied 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
FruitnNuts

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

Sdzucker
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 efciency of a protable agro-industrial

sector, which signicantly exceeds the efciency
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

Sdzucker
Sdzucker AG is a very well known German company. With a production of some 5 million tons,
Sdzucker Group is the market leader in the sugar
sector. The Groups 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
reneries.
In 2001, on the basis of the earlier purchase of Moldovan sugar processing facilities in Drochia, Alexandreni and Falesti, Sdzucker-Moldova JSC was
established. Sdzucker-Moldova JSC produced
83,000 tons of sugar last year, 56 percent of the
production of the Moldovan sugar sector. In monetary terms, Sudzukers annual turnover in Moldova
grew to 37 million during the last year of operation. When Sdzucker 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 Sdzuckers arrival, thousands of people

obtained stable employment. Understanding Moldovan realities, Sdzucker 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, Sdzucker completely changed
the system. It established a raw material supply development division to help growers. The division organizes regular workshops and eld-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, Sdzucker has managed to make the
product competitive in these markets. In a little over
ve 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

Ocnia

Briceni

Nistru

Dondueni

Prut

Edine

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

oldneti

BLI

M13

Sngerei

Rezina

Fleti
M4

Teleneti

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

Cueni

Slobozia

M05

24

M3

Odessa

Nistru

Leova

Basarabeasca
Cantemir

Pru
t

Basarabeasca

Cantemir

MD: Basarabeasca
UA: Serpniovoe 1

COMRAT

FEZ Tvardita

M3

M3

Giurgiulesti

Da

Galati

vs

ky

Li

ROMANIA

an

vs

ky

Belgorod Dnestrovsk

Li

an

Taraclia

Vulcneti

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

Gh

Kilia

Galati

Shoes

Razim

21

Sulina

Istambul

Sf.

Consta
nta

Tulcea

zi

Bolgrad

Focsani

LEGEND

MD: Vulcanesti
UA: Vinogradovca

Ra

ro

Ceadr-Lunga

FEZ Taraclia

MD: Giurgiuleti
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

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

tefan Vod

Cimilia

Causeni
Cimilia

Anenii Noi

Hnceti

TIRASPOL

Anenii Noi

Arad, RO - 654km
Bucharest, RO - 407km
Craiova, RO - 641km
Pitesti, RO - 531km
MD: Leuseni
RO: Albita

CHIINU

Nisporeni

M4

CHIINAU

FEZ Balti/ Subzone nr.4/ Straseni

Iasi

Grigoriopol

Pru
t

24C

Criuleni

Streni

M21

Ungheni

Dubsari

Clrai

Orhei

Iasi, RO - 24km
MD: Sculeni
RO: Sculeni

Calarasi

BMO Grup

Rezina

Ribnita

Singerei

FEZ Balti

Glodeni

BALI

Falesti

Costeti

M4

Soldanesti
M2

Floreti

FEZ Marculesti hub airport

Ricani

24D

Drochia
Rcani

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 Ministers Office, is
the prime source of information
and assistance for potential investors.

Contact us:
www.invest.gov.md
invest@gov.md

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

500
km

Lviv

Bratislava
Esztergom

Gyor
Graz

km

Timisoara

0
50
10

km

00

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