There is no shortage of fresh fruits and vegetables in Moldova, but turning these commodities into profit often proves to be a challenge. The legacy of the Soviet state-run economy has included a lack of essential expertise in marketing and profit maximization, leaving many of the newly-privatized companies without the means to access new markets and improve efficiency. However, with assistance from CNFA’s Agribusiness Development Project (ADP) and the Farmer-to-Farmer Program (FTF), one Moldovan company is a step closer to success.
Established in 2000, Vindex-Agro LLC is a mid-size fruit and vegetable production and marketing company. In order to increase its market share, Vindex-Agro has continuously sought ways to improve its production capacity and marketing ability. In 2003 the company purchased BAYER irrigation equipment and began growing vegetables on a 20-hectare plot.
As a result of rising production volumes and financial revenue, Vindex-Agro’s management decided to enlarge the planting area. Given the lack of local expertise and access to capital, the company turned to CNFA and FTF to realize its objectives. In 2005, Vindex-Agro applied to CNFA’s USAID-funded Agribusiness Development Project, based in Moldova, for a matching grant of $24,925 to install plastic tunnels and drip irrigation for vegetable production. To complement the grant, FTF provided volunteer assistance in introducing new varieties, applying modern production techniques and improving the marketing of its products. Over the next two years, Vindex-Agro hosted two more FTF volunteers, one who trained staff in marketing principles and production practices, such as brand promotion, packaging and labeling, and another who helped the firm improve harvesting and post-harvest techniques, irrigation and modern vegetable planting.
As a result of the grant and the technical assistance provided by our expert volunteers, Vindex-Agro improved the output quantity and quality of its products, more than doubling sales and adding an additional line of supermarkets to their distributors. Farmer-to-Farmer volunteers also assisted Vindex-Agro in developing a dynamic marketing plan and have thus increased the company’s local market share from 2% to 10%. Volunteers have also advised Vindex-Agro on proper post-harvest handling that will help meet the demand for fruits and vegetables during the off season.
Although initially a low-profit grain marketing business, Vindex-Agro has been able to evolve into an innovative high-value fruit and vegetable producer. Today, Vindex-Agro is the biggest and the most progressive producer enterprise in the region. As a result of USAID/CNFA assistance, Vindex-Agro has been able to improve efficiency of production and has shifted from seasonal to permanent employment, thus increasing avenues of stable income and health benefits for its employees.
