Ministry of Agriculture and Food Industry of the Republic of Moldova Invest in Moldova – Invest in Region of February, Chisinau Agriculture and food industry – opportunities for development in Moldova

Area: 33,800 km 2 Population: 3.58 million Capital: Chisinau - 717,000 citizens Climate: moderate winter (Jan °C ), warm summer (Jul °C) Agricultural land: 2518,2 thousand ha including: Arable land: 1833,2 thousand ha Perennial 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 GDP (%)100,0 Agriculture, hunting and forestry (%) 16,416,415,115,19.9 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 products Mln USD

State Programs and strategies for agro-food sector development National Strategy for Development National Strategy for sustainable development of agricultural and industrial sector for Government Program for “Country’s modernization and people’s welfare” National Program “Moldovan village” ( ) Concept on subsidies in agriculture ( ) 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 production 191 Bakery production 50 Fruit and vegetable processing and canning 35 Dairy production 15 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 brandy  10 producers of sparkling wine  3 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 (thousand of tons ) Fruits (total), including:417 - seedy species, of which309 - apples pears 6 - stone-fruit species, of which plumps 51 - cherries sweet cherries 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 ( ), approved by the GoM on 28 th 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, Rural investments and services project (RISP-II), World Bank (IDA), 15 mln USD, Revitalizing agriculture project, FIDA, 15 mln USD, Rural business development program, FIDA, 13,5 mln USD, Assistance for unprivileged farmers 2KR, Japanese Government, 2000-present 6. Food security program, European Commission, present 7.Food security consolidation in South-eastern European countries in transition – a regional approach to food legislation and control, FAO, USD, Food security program, European Commission/FAO, International support to Moldovan agro-food sector 11

Success stories, international awards 1. Euro Market Award – Bruxelles Earth Market Award – Malta IMPEX XIV – USA The International Academy of Confectionary Markets, Moscow Super Grand Prix – International Contest “Gold Gryphon” Grand Prix – International Contest “Gold Gryphon” – 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 Agriculture and Food Industry of the Republic of Moldova Invest in Moldova – Invest in Region of February, Chisinau Ministry of Agriculture and Food Industry of the Republic of Moldova Tel: +(373 22) ; +(373 22) Website: Thank You for Your attention