CNFA’s Agribusiness Development Project (ADP) in Moldova was aimed at improving the international competitiveness and trade performance of the country’s high-value agriculture (HVA) sector, ultimately increasing rural incomes and employment. The $12.5 million program, funded by USAID, had enormous success preparing Moldovan enterprises to meet the rigorous challenges of the international market. ADP bolstered the development of the high-value agriculture sector in Moldova by strengthening the capacity of all participants in the value chain: producers, processors, aggregators and exporters. ADP particularly emphasized identification of markets for individual products, the use of value-chain drivers, production of marketable products, financing for replication and dissemination of information.

Development of the High-Value Agriculture Sector

Realizing the potential of high-value agriculture to Moldova’s economic growth, ADP focused on developing the agricultural sector by increasing the quality of crops through new technologies, including cold storage, pre- and post-harvest handling techniques, and improved seeds. By the end of the project, participating firms had exported over $105 million in processed agricultural products, an increase of more than 23 percent.

International Quality Assurance & Certifications

In order boost exports to higher-value international markets, ADP facilitated massive gains in crop quality assurance. Exacting standards on the international market and high-quality imports on the domestic market called for large scale certification of Moldovan agriculture. More than 7,000 people received training in production, post-harvest handling and marketing, and 3,500 were trained in GLOBALGAP standards, HACCP, food quality and food safety. As a result, 13 processors received the HACCP and food safety certifications required to export to the EU. In addition, 8 growers, the only growers in the CIS to qualify, received GLOBALGAP fresh produce safety certifications and can now access the EU market.

Expanding Access to Markets

With the Russia 2005 embargo on Moldovan fresh fruits and vegetables, ADP began identifying and cataloging new markets for Moldovan produce. Target market conformation studies were conducted in Romania, Ukraine, Belarus, Germany, Poland and the Baltics to assess the demand and market qualifications for 12 products, including apples, sweet peppers, tomatoes, table grapes, and other fresh fruits and vegetables. Following these early assessments, ADP conducted more detailed rapid market appraisals in Romania, Ukraine and Russia to give greater market detail and even identify specific buyers. Domestic and international study tours followed to allow more than 1,500 people to make important international buying contacts. Counting first sales alone, ADP clients made new business linkages worth roughly $4 million.

Leveraging Private Investment through Matching Grants

In Moldova, CNFA employed matching grants to increase local buy-in and promote investment in new technologies. ADP provided 23 producers and processors with grants worth more than $1.3 million. With a matching ratio of 2:1, these grants leveraged an additional $2.9 million from local enterprises. Grants were used to introduce and fine-tune modern technologies, such as cold storage and drying facilities. As a result, producers increased annual sales from $500,000 to over $4.2 million, almost $2 million of which was in high-value products. Similarly, processors increased their sales of high-value products from $1.3 million to $6.1 million.

Promoting Market Information

To ensure producers and processors have access to the latest market information and training materials, CNFA and the National Extension Network, a local nonprofit rural development agency, created the Export Moldova website (http://export.acsa.md). In addition to up-to-date market information, Export Moldova provides market surveys and training materials on international safety certifications, modern agricultural practices, and planning and management.

Achievements:

• Over $105 million in exports of processed agricultural products, an increase of more than 23 percent
• 8 growers, the only growers in the CIS to qualify, received GLOBALGAP fresh produce safety certifications with ADP assistance
• 7,022 people trained in production, post-harvest handling and marketing
• Over 500 new full-time jobs created
• 3,555 people trained in international food certifications, including GLOBALGAP and HACCP.
• Matching grants to producers and processers nearly doubled sales for grant recipients.
• Matching grants to small-scale growers more than doubled per-hectare profits for participants.

Read more about CNFA's Agribusiness Development Program in Moldova at www.cnfa.md.

Related Links

Demoplots Project Empowers Small Farmers in Moldova

Cold Storage Boosts Moldovan Apple Exports

Volunteer Assistance Increases Sales and Opens New Markets

CNFA Helps Increase Exports and Create Jobs in Moldova

Updated 6/2009