INVESTMENT OPPORTUNITIES IN  FRUIT AND VEGETABLES SECTOR OF THE REPUBLIC OF MOLDOVA

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INVESTMENT OPPORTUNITIES IN FRUIT AND VEGETABLES SECTOR OF THE REPUBLIC OF MOLDOVA

description

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 - PowerPoint PPT Presentation

Transcript of INVESTMENT OPPORTUNITIES IN  FRUIT AND VEGETABLES SECTOR OF THE REPUBLIC OF MOLDOVA

Page 1: INVESTMENT OPPORTUNITIES IN  FRUIT AND VEGETABLES  SECTOR OF THE  REPUBLIC OF MOLDOVA

INVESTMENT OPPORTUNITIES IN FRUIT AND VEGETABLES

SECTOR OF THE REPUBLIC OF MOLDOVA

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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

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SHARE OF FRUIT AND VEGETABLES IN VEGETAL PRODUCTION,%

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SHARE OF FRUIT AND VEGETABLES SURFACES BY CATEGORY

FRUIT VEGETABLES

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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

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Seed fruits

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GEOGRAPHICAL AREAS FAVORABLE FOR FRUIT PRODUCTION 

NORTH - Seed fruits

CENTER and SOUTH - Stone fruits

CENTER and NORTH  - Nuts

Throughout territory- gourds

Nuts

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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

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 PRIORITY DIRECTIONS FOR INVESTMENT IN THE SECTOR

Planting new orchards  Fruit and vegetables storage

Fruit and vegetables processing

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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

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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

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ADVANTAGES

Access to EU and CIS markets  (trade regimes and geographical location)

The possibility of obtaining quality products

Possibility of setting up joint ventures

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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).