With CNFA support, and according to the international standards, a model apple purchasing and sales contract was implemented in the Republic of Moldova February 19, 2010
The Business Cooperative "Premium Fruct" has developed and implemented a model apple purchasing and sales contract, in accordance with the international standards. The new contract provides a transparent framework for delivery payments, quality control, delivery schedule, and the solving of inconsistencies and conflict situations between the contract parties. For this very purpose, between February 11 and February 19, 2010, the cooperative has benefited from voluntary assistance, provided by the American expert George Lamont within the Farmer to Farmer Program, implemented in the Republic of Moldova by CNFA.
"The new model contract builds trust between the commercial partners, thus increasing the chances of Moldovan producers and exporters to work together and to meet the necessary conditions in order to access foreign markets," believes Igor Goraşov, President of "Premium Fruct" Cooperative. "Our partners have stated this contract provides maximum transparency, as well as equitable solutions for the most frequent situations that hinder business transactions", Igor Goraşov states.
"To develop an apple marketing cooperative based on modern principles is a challenge by itself in the Republic of Moldova, where the technical expertise is limited", the volunteer states. "The contract is mostly focusing on quality control, in order to make the producers realize they need to grow "diamonds" that could replace the existing low quality products that only meet minimum standards," George Lamont adds. The American volunteer is firmly convinced the implementation of this contract will significantly increase "Premium Fruct" chances to become a model cooperative, that could take over advanced fruit marketing practices on the traditional markets, as well as on the less explored ones, namely the markets of Middle East, South-Eastern Europe or South-Eastern Asia.
The new contract model was developed and tested under the volunteer’s supervision, which has also assisted "Premium Fruct" cooperative management in negotiating several apple purchasing transactions. During his visit, George Lamont has also helped the cooperative to develop a quality control program, as well as to optimize the business plan and the operational plan of the cooperative for the year 2010.
The "Premium Fruct" cooperative was founded in early 2009 by a group of members of the "Moldova Fruct" Apple Exporters’ Association. From the very beginning, the cooperative has benefited from technical support, provided by CNFA, as well as from institutional assistance, provided by the National Federation of Farmers from Moldova "AGROinform". The "Premium Fruct" members own apple orchards and vineyards situated mainly in the central and northern part of Moldova with a production capacity of five thousand tons of fresh fruit per year. In its first year of activity, the cooperative managed to export about 2.5 thousand tones of apples to the Russian Federation and Kazakhstan. This year, it aims to increase the quantity of exported apples to 10 thousand tones. At the same time, "Premium Fruct" intends to break into the apple markets of some European states including the Czech Republic, Bulgaria, Romania and the Baltic States.
"Premium Fruct" is the first Moldovan cooperative to obtain a long term export contract for fresh apples. The same contract laid the foundation for the cooperation of five out of the fifteen growers in Moldova implementing modern apple growing standards (GlobalGAP). The cooperative plans on attracting other apple growers which are willing to market their produces at a better price and become members of a cooperative which relies on professionalism, transparency and efficient management.
The research carried out by CNFA showed there are markets for Moldovan fresh products. Currently, the best preferred market by the Moldovan producers is Moscow and other Russian urban centers, which have considerable purchasing potential and minimum quality requirements. The biggest competitors for the export of Moldovan products to Russia come from Poland, Serbia, Belgium, Hungary and Italy. The Moldovan growers could become competitive if they reached the existing productivity level, quality control, storage and packaging, offered by their current competitors.
A major issue for the export of the Moldovan agricultural products resides in the creation of considerable amounts of standardized products by small growers. This applies to both quality and appearance - sorting, packaging, brand, etc. Currently, even the biggest Moldovan fruit and vegetable growers are unable to meet the minimum quantity requirements of the Russian distribution chains or supermarkets from other European countries. One of the solutions identified by CNFA would be the development of a legal and institutional framework, allowing to create a collecting infrastructure under fair conditions, so the growers have sufficient quantity to negotiate with the large distribution networks.
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CNFA is an organization for international development from USA, founded in 1985, which is dedicated to increasing rural incomes by empowering farmers and rural entrepreneurs. CNFA activity is focused on agricultural development which is based on the initiatives to facilitate market access, enhance agribusiness competitiveness, increase productivity, and improve access to inputs and credit for businesses. CNFA has a successful track record of performance in Africa, Eastern Europe, the Middle East, and Central Asia, and has managed over $200 million in donor-funded agriculture development programs over the past decade. CNFA is currently implementing the five-year "Farmer to Farmer" Program, worth $2.5 million, and has recently concluded the $12 million-worth Agribusiness Development Program.
For details please contact Nadejda MOCANU, "Farmer to Farmer" Program Coordinator (tel.:240311, 069260005, nmocanu@moldova.cnfa.org, www.cnfa.md) | 
