INVESTMENT OPPORTUNITIES IN FRUIT AND VEGETABLES SECTOR OF THE REPUBLIC OF MOLDOVA
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Transcript of INVESTMENT OPPORTUNITIES IN FRUIT AND VEGETABLES SECTOR OF THE REPUBLIC OF MOLDOVA
INVESTMENT OPPORTUNITIES IN FRUIT AND VEGETABLES
SECTOR OF THE REPUBLIC OF MOLDOVA
LEGAL FRAMEWORK
The legislation of the Republic of Moldova
in the field of investments: Law on foreign investments Law on investments in entrepreneurial activity Law on free economic zones Strategy on investments and export promotion Bilateral agreements on promotion and mutual protection of
investments with 35 countries
The legislation of the Republic of Moldova
in the fruit and vegetables sector: Law no. 728 of 06.02.1996 on fruit growing Law no. 659 of 29.10.1999 on seeds Law no. 658 of 29.10.1999 on nut crops
SHARE OF FRUIT AND VEGETABLES IN VEGETAL PRODUCTION,%
SHARE OF FRUIT AND VEGETABLES SURFACES BY CATEGORY
FRUIT VEGETABLES
PRODUCTION AND DISTRIBUTION IN 2010
Fruit
Production:Area - 166 thousands ha
Average production - 3.95 tonnes / 1 ha
Global production - 385 thousands tons
Distribution:Export - 220.2 thousands tons
Domestic consumption - 60.1 thousands tons
Processing - 83.6 thousands tons
Vegetables(field vegetables, potatoes, melons )
Production:Area - 76.2 thousands ha
Average production - 9.5 tonnes /1 ha
Global production - 727.4 thousands tons
Distribution:Export - 30.4 thousands tons
Domestic consumption - 571.3 thousands tonnes
Processing (vegetable field) - 32.1 thousands tons
Seed fruits
Ston
e fr
uit
GEOGRAPHICAL AREAS FAVORABLE FOR FRUIT PRODUCTION
NORTH - Seed fruits
CENTER and SOUTH - Stone fruits
CENTER and NORTH - Nuts
Throughout territory- gourds
Nuts
GEOGRAPHICAL AREAS FAVORABLE FORVEGETABLE CULTIVATION
Vegetables
Concentration of vegetable cultivation is in bed of the Nistru and Prut rivers, favorable conditions existing throughout the territory
PRIORITY DIRECTIONS FOR INVESTMENT IN THE SECTOR
Planting new orchards Fruit and vegetables storage
Fruit and vegetables processing
MECHANISMS OF SUPPORT
State subsidies Regulation of agricultural subsidies in 2011 provides
following measures for investment in the fruit and vegetables
sector:
Measure 3. Stimulating investment for the establishment of perennial plantations
Measure 4. Stimulating investment for vegetable production in greenhouses, solariums, tunnels
Measure 9. Stimulating investment for infrastructure development and post harvest processing
IFAD grants
FACILITIES
Favourable climate conditions Fertile soil Cheap labour Attractive fiscal regime (tax - 0% in
2011, provided 10% in 2012) Possibility of long-term land lease (30 years) Exemption from customs duties
ADVANTAGES
Access to EU and CIS markets (trade regimes and geographical location)
The possibility of obtaining quality products
Possibility of setting up joint ventures
CHALLENGES Poorly developed irrigation system
Lack of local vegetable seed production
Outdated technology to produce fruit and vegetables
Weak anti-hail system
Lack of post-harvest infrastructure
Weak Marketing System (lack of promotional techniques and financial resources).