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USAID/CNFA Assist Moldovan Agribusinesses Enter New Export Markets

News Release


October 26, 2005

Citizens Network for Foreign Affairs’ Agribusiness Development Project (ADP), financed by the United States Agency for International Development (USAID), continues to support the Moldovan High Value Agricultural (HVA) sector with an increased focus on export market competitiveness. Six Moldovan companies that are currently supported by ADP are displaying their achievements at the Farmer 2005 EXPO (Monicol, Palmoc, Rentier Agro, Vindex Agro, Sant Agro-SC, and Stefan Chitoroaga Family Farm).

During the first year of implementation, ADP has assisted 21 Moldovan producers and processing companies. In addition to grant assistance, ADP provided direct technical assistance and training to 18 value-adding enterprises and over 300 producers. ADP’s interventions are particularly focused on improving access to new export markets, in response to Russia’s ban of horticultural imports from Moldova. Due to ADP interventions, 5 of the supported companies have managed to enter alternative and more lucrative markets: Fortina-Labis, Rentier-Agro and Vindex-Agro exported top-quality vegetables to Romania, Sant-Agro to Belarus, and Monicol shipped dried prunes to the Baltic States. Negotiations are also underway for export of organic walnuts into the United Kingdom. This was possible because of improved product quality and better market linkages established through ADP.

John Costello, CNFA president views this as “a real example of how Moldovan companies can turn the challenge into an excellent opportunity by implementing food safety and quality management programs to meet Western market demand. ADP will lead the way in assisting the Moldovan food industry to position for export to EU and other markets. This is accomplished by technical assistance interventions in strategic marketing programs and food safety training and certification that are required for exportable processed and fresh fruits and vegetables.”

Since the program launch, the amount of investment committed to improve the competitiveness of Moldova’s HVA sector totals $4 million, including $1.3 million of USAID/CNFA grant funds and over $2.7 million of local partners’ investment. Current projects focus on application of innovative production and processing technologies, establishment of new varieties of fruit and table grape plantations, as well as development of new products and brands. These projects are already generating over 50 hectares of new plantations including apples, plums, almond, table grapes and black currant, 60 hectares of high-yield vegetable production under controlled environments, 3 modern drying facilities, and 5 cold storage facilities with packing operations, including one unit with controlled atmosphere. ADP interventions to date created over 300 new jobs in rural areas. In the past year, CNFA has also conducted 4 market studies for Moldovan high-value products, 4 study tours (both in Moldova and abroad), 11 trainings and 2 roundtables tackling key policy issues affecting HVA growth.

Starting October 1, 2005, ADP is specifically focused on bringing innovations to the HVA sector, by establishing model value-adding enterprises and targeting producers around them. Thus, ADP seeks to strengthen the entire value chain, from producer to consumer. Technical assistance and matching grants will focus on developing marketing and food safety systems within Moldovan HVA enterprises, to help them position new quality Moldovan products on Western markets. The ultimate goal of ADP is to provide a sufficient number of sustainable and replicable enterprise models that will lead the way for the rebuilding of Moldova’s production, processing and export of HVA products.
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CNFA® programs in Moldova are primarily funded by the US Agency for International Development (USAID) under cooperative agreements. This website was also made possible through support provided by USAID. The opinions expressed herein are those of the author(s) and do not necessarily reflect the views of USAID.