Rentier Agro December 3, 2003
CREATING NEW MARKET OPPORTUNITIES Opening Western Markets for Moldovan Vegetable Producers USAID continues to foster export market expansion for Moldovan high-value agricultural products through targeted technical and financial assistance to the sector. This becomes even more crucial at a time when traditional export markets become inaccessible, as is the case with the Russian market for fresh agricultural produce. Rentier Agro Ltd. is one of many Moldovan vegetable producers that was forced out of its habitual export venues, yet the company’s management sought to turn the threat into an opportunity by placing its bet on high-quality vegetables for Western markets. Motivated to produce table-quality fresh produce, Rentier-Agro applied for assistance to the USAID-funded Agribusiness Development Project. Due to its strong business background and market-oriented strategy, the company qualified for a $24,500 USAID matching grant, which complemented Rentier Agro’s own investment of over $42,000 for modern equipment and technology adjustments. The funds were used to purchase high-yield vegetable seedlings, a drip irrigation system, a planting machine, a sprinkler and a chemical sprayer – all crucial in securing a consistent and top-quality yield of vegetables. As a result of these interventions, the company produced over 400 tons of table-quality tomatoes, peppers and eggplants, 5 times more than in 2004. Already 70 tons were exported to neighboring Romania due to the quality requirements met by Rentier Agro. The company’s management projects sales to reach $75,000 by the end of the harvesting season, comparing to just $9,000 in the previous year.
Rentier Agro represents a good model for other vegetable producers in Moldova. By taking a market-led approach to production activities, the company succeeded not only in avoiding potential losses but, more importantly, in securing a new market opportunity. This year’s success brought confidence to Rentier Agro owners, who are determined to at least double current results in 2006. Rentier Agro At A Glance |