Farm Stores November 28, 2005
BUILDING MOLDOVA’S INPUT SUPPLY INFRASTRUCTURE Creating the Network In 2000, Moldova’s local input supply infrastructure was virtually non-existent. USAID/CNFA launched a pilot initiative under Agribusiness Partnership Program, opening the first 10 farm stores in Moldova. Based on the success of this pilot activity, USAID/CNFA went on to create a nationwide private enterprise-based input distribution system, designing the 3-year Private Farmer Commercialization Program (PFCP) to establish a network of farm stores as village-level rural development centers, which would have a lasting impact on the country’s agricultural service infrastructure. After receiving over 450 applications from companies wishing to establish farm stores and conducting over 90 feasibility studies throughout Moldova, PFCP selected the 70 top applicants to receive grants and technical assistance. Through a shared contribution formula, each company received USAID/CNFA grants ranging from $30,000 to $50,000 to complement their own investment in covering start-up costs for the stores, such as construction materials, operating licenses, office and agricultural equipment, environmental mitigation measures, staff training and technical assistance. The Moldovan partners were responsible for covering direct labor costs, providing a suitable building to house the farm store, ensuring access to commercial credit for farmer customers, and securing a diverse range of inventory. Overall, the local partners’ private investment reached $7.6 million by the end of the program, while USAID/CNFA provided $3.16 million through grant funds. 
Four years later, the farm store network has become one of Moldova’s largest suppliers of agricultural inputs and services, meeting farmers’ needs for agricultural inputs, equipment and machinery services, output marketing channels, credit (both commercial and operational loans), veterinary supplies, training, information and agronomic advice. One Year Out Four years since the beginning of PFCP and one year after its completion, the farm stores have proven to be profitable and stable businesses: - total turnover in 2004 reached $4.4 million
- expected turnover in 2005 reaches $5.8 million (compared to $1.1 million in 2001)
- 85,000 clients every year access quality inputs, machinery services, credit and information.
The initial network set up with USAID/CNFA assistance is gradually expanding, with farm stores opening new branches and expanding operations into neighboring villages:
- eight farm stores have each replicated the initial success by opening 2 or even 3 additional locations for their businesses
- 90 active farm stores operate today.
Although created mainly as input supply centers, 30 of them are also providing crucial output marketing channels to area producers, by purchasing various agricultural produce for re-sale or processing:
- 12,000 farmers marketed their output through the farm stores
- over 16,500 tons of fruits, grapes, grains and other crops worth $2.9 million were sold
- 2 farm stores are adding value to farmers’ table grapes and apples worth $100,000, by offering cold storage services.
In addition to these important benefits to Moldova’s developing farming community, the farm store network is also a very important employer, providing a stable income to over 300 people. Access to a reliable supply of quality inputs has enabled the rapid growth and improvement of agricultural production, and laid the foundation for value-added processing and access to increasingly competitive export markets. Farm Stores at a Glance | 
