Moldova Agribusiness

Sector outlook

Moldovan fertile black soil and climate offer very favourable conditions to grow cereals, fruits and vegetables. Moldova is also famous for its rich wine industry, one third of the production being exported. Agribusiness accounts for 30% of GDP, while food processing accounts for more than two thirds of exports: 90% of processed fruits and vegetables are exported.

Agricultural products can be exported without duties and tariffs in Russia and other CIS countries, and most of them also benefit from a free access to the EU markets.


Strategic direction/ specific schemes and incentives

Moldova aims at developing high value added agribusiness activities and launched several support programmes and mechanisms to encourage the agribusiness sector competitiveness:

  • Support mechanisms for investments in: fruit growing and wine-growing plantation, land protected vegetable production, organic farming, milk and meat production, etc.;
  • Special tax regime: payment of a single tax (“land tax”) for agricultural enterprises, 5-year exemption of income tax, real estate tax, road tax and use tax.


Business opportunities

Agriculture and food processing projects can be developed for the local markets or for exports in Russia, other CIS countries and the EU. Business opportunities include farm land leasing, greenfield investments and supply of equipment, technologies and know-how.

Promising sub-sectors:

  • Fruits and vegetables: creation of new orchards, vineyards, walnuts, food processing, etc.;
  • Vine growing and wine production: a very favourable environment and secular traditions;
  • Dairy products: establishment or upgrading of milk farms and milk processing plants;
  • Meat products: establishment of livestock farms and slaughter houses;
  • Organic farming;
  • Supply of equipment and technologies: storage, packaging, long distance transportation, drying, instant freezing, canning, production of ingredients and additives.


Some success stories

Südzucker (Germany), a leading European sugar company, operates three plants in Drochia and Falesti. It established a Moldovan affiliate in 2001, and introduced new management and organisation practices which utterly changed and modernised the Moldovan sugar industry.

Lactalis (France), the largest dairy enterprise in the world, has two dairy plants in Moldova where it produces under the President and Alba brands. It invested EUR 17 million in 2010 to expand its activities and develop its cheese and feta cheese exports.

Trans-Oil (Moldova), a private company founded in 1997 with the assistance of the US company Trans-Oil, operates in the grain and oil seed industry in the Black Sea region. In 2010-2011, it invested over EUR 20 million for a sunflower oil refinery and grain elevator project in Giurgiulesti cargo terminal. It has representative offices in Moldova, Russia, Ukraine, Switzerland and France.


Useful links and contacts

Union of Agricultural Producers of Moldova

Chamber of Commerce and Industry of the Republic of Moldova

MIEPO

This publication has been produced with the financial assistance of the European Union. The contents of this publication are the sole responsibility of EUROCHAMBRES and can in no way be taken to reflect the views of the European Union.

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