Agrostoc Business Cooperative October 24, 2005
Joining Efforts for Better Farm Profits "We are very proud of what Agrostoc has become today, a year
after USAID/CNFA`s support was completed. Our members trust
Agrostoc as a profitable cooperative with a stable future.
And while the business environment in Moldova brings many
challenges, we have learned that our joint effort and
cooperation will bring the best solutions." Igor Tagadiuc,
Agrostoc Cooperative President Along with the successful launching of 80 farm stores throughout Moldova, USAID/CNFA stepped up the support to the developing input supply infrastructure by encouraging store owners to combine their purchasing power and set up a member-owned buying cooperative. In 2001, 15 farm stores joined their efforts to found Agrostoc - the first Western-style input supply cooperative in Moldova. Each founding member invested $1,000, while USAID/CNFA granted $477,000 to help capitalize the organization and jump-start business transactions. Additional funds for the working capital were provided by the SOROS Foundation through the East West Management Institute in amount of $200,000, and by USDA in amount of $150,000.
Designed as a for-profit company, Agrostoc is dedicated to serve members' wholesale input supply and farm store management needs. The members have access to certified Moldovan seeds, and quality fertilizers and pesticides imported directly from renowned companies in Germany, Great Britain, Israel, Holland, USA, Ukraine and Russia. By combining members' purchasing power, Agrostoc is able to negotiate competitive prices for its supplies, made even more accessible to cooperative members through specialized credit lines. Member farm stores, in turn, are serving over 80,000 farmer customers every year.
In addition to supplying members with inputs, Agrostoc specialists are helping members with the latest know-how on new technologies in agriculture by providing direct advice and by organizing field days at their demonstration plots. Members take turns every year in running such demo projects, where Agrostoc implements specific innovative methods for fertilization, production and plant protection. Results are then widely disseminated to other members and farm store customers through public seminars and trainings.
In just 3 years Agrostoc became a leading supplier of inputs on the Moldovan market and a standing example of a profitable business cooperative. With 77 members throughout the country, Agrostoc increased sales by 5 times; 2005 season is not over yet, but Agrostoc has already reported $2.5 million in member sales, with a net profit of $100,000 - an impressive growth from the modest $15,000 profit obtained in the first year of activity.
Agrostoc At A Glance | 
