Export opportunities of the agri -food sector of

Export opportunities of the agri -food sector of the Republic of Moldova 24 June 2010, Chişinău

What means agri-food sector for Moldova § Agri-food sector in GDP – 15 %; § Export of the agri-food products consists – about 50 % from the total export; § Population involved in agri-food sector – 33%.

What do we export v Wines and spirits; v Fruits; v Vegetables; v Processed food.

Structure of agriculture production (%)

Structure of processing industry production

Production versus export 2009 (th. tones/mil. dal. )

Real potential of the Republic of Moldova (th. tones/mil. dal. )

Export of the alcoholic products About 95% of the alcoholic products are exported on the foreign markets. Alcoholic products are exported to around 55 countries Main markets: Commonwealth of Independent States (CIS) • Russian Federation – 39, 7% • Belorussia – 32, 6 % • Ukraine – 11, 7 % • Kazahstan – 11, 4 % European Union (EU) • Poland – 38, 3% • Germany – 19, 1 % • Czech Republic – 14, 2 % • Romania – 12, 6 % • Latvia – 3, 2 % • UK – 2, 0 %. Other countries • US – 14, 2 % • Israel – 51, 4 %

Fruit exports, mil. USD

Vegetables export, mil. USD

Trade regime of the Republic of Moldova § Export and import activities are fully liberalized, without some other quantitative restrictions; § There is not a custom tariffs for the exported goods and services; § Moldova benefits from Autonomous Trade Preferences in the bilateral trade with EU from January 2008; § We are part to different international and regional agreements which facilitate the trade between our major commercial partners. (Ex. CEFTA agreement, CIS agreements, ATP with EU)

Export partners 2009 Top 9 trading partners for exports: ØRussian Federation (30%), ØBelorussia (11, 6%), ØUkraine (9, 1%), ØRomania (9, 1%), ØGermany (5, 6%), ØFrance (4, 5%), ØKazakhstan (3, 5%), ØSwitzerland (3, 1%), ØAustria (1, 1%),

Export structure by geographical areas

Quality systems implemented in the Republic of Moldova HACCP 10 Entreprises ISO 54 Industrial enterprises Global. Gap 7 Enterprises

Analysis of the export with the agri-food products Opportunities Constraints Fertile soil, good climate conditions and high productivity Existing quotas in the export with the agri-food products to the EU market Ecologic and healthy agri-food products High costs for producers to comply with EU standards of production of animal and plant products High demand for Moldovan agri-food products on the foreign markets Vulnerable to international economic and political environment (Russian case from 2006) Reliable producers and exporters Lack of promotion for agri-food products Suitable prices Low transfer of new technologies in the sector

How the Ministry will contribute to the diminishing and eliminating existing constraints § Negotiation of the Free Trade Agreement with EU; § Elaboration and discussion of a new marketing concept and strategy for the exports of the agri-food products; § Create necessary infrastructure for businesses to perform the export to foreign markets; § Organization of local and international promotional events; § Attract foreign assistance and investments for compliance with European norms and standards of production; § Stimulate the production and export of the High Value Agriculture Products

Ministry of Agriculture and Food Industry of the Republic of Moldova Tel: +(373 22) 233 427; +(373 22) 232 384 Email: adm_maia@moldova. md Website: www. maia. gov. md

Thank you for your atention!