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Agriculture in the Republic of Moldova. Overview. Share in G.D.P. – 1 6 , 6 % Share in total exports – 40 % Population involved in agriculture – 27 ,5 %. Impact on economic growth – 38% Agricultural lands – 2498,0 thousands ha (73,8%) including: arable land – 1810,5 thousand. ha
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Agriculture in the Republic of Moldova
Overview Share in G.D.P. – 16,6% Share in total exports – 40 % Population involved in agriculture– 27,5%. • Impact on economic growth – 38% • Agricultural lands – 2498,0 thousands ha (73,8%) • including: • arable land – 1810,5 thousand. ha • orchards – 134,5 thousands ha • vineyards – 147,3 thousands ha
Strategic priorities for the development of agriculture2011 – 2015 (1) • Food safety reform; • Wine sector modernization; • Modern market infrastructure development; • Large scale use of smart agriculture (Minimum and No-Till); • Milk and meat production sector development.
Strategic priorities for the development of agriculture2011 – 2015 (2) • Renewable energy production from agricultural raw materials; • Education and research in agriculture reform; • An efficient agricultural subsidy system; • E-agriculture – functional and efficient information systems; • Development of the fruit and vegetables sector.
Key targets for the financial state support in agriculture General • A facilitated access of the credits provided by commercial banks to farmers; • Improved use of arable areas by land consolidation. Plant production • Extended production season (greenhouses and tunnels for growing vegetables) • Increase the transfer of innovation and technologies in agriculture • Increased perennial plantations establishments for growing grapes • Improved access to water through modern irrigation systems • Developed post –harvesting and marketing infrastructure Animal production • Renovated technologies for animal farms • Developed genetic fund for animal production
Sector structure Viticulture WineIndusty • The types of wineries: Primary Wineries - 66Secondary Wineries - 23Mixed Wineries - 59 • The number of individual grape producers - 50 000The main grape varieties grown: • The total area of vineyards – 147,5 thousand hectares • including varieties of table grapes- 16.3 ha varieties of wine grapes - 131.2 thousand ha • Global grape production varieties for table grapes-70 .2 thousand tons varieties of wine grapes- 423.3 thousand tons • Structure plantations: 86% technical varieties (wine) 14% table grapes White Aligote – 23% Rkaţiteli – 15% Sauvignon – 9% Feteasca albă – 7% Chardonnay – 4% Riesling Rhine – 3% Traminer – 2% Red Merlot – 9% Cabernet –8% Pinot Noir– 7%
Market potential of the wine sector • Categories of the produced wine - dry and sweet natural wines (e.g. Chateau Vartely, Purcari); sparkling wine (e.g. Cricova); brandy from grapes (e.g. Aroma, Barza Alba) • Moldovan wineries produce about 21,2 million dal. of wine a year, out of which 904 thousand dal. of sparkling wines. • 90% of the produced wine is being exported mainly to CIS and EU markets • Since 2008, Moldova has tariff quotas in the trade of wine with EU. Currently, Moldova is negotiating Free Trade Agreement with EU.
Market potential for fruit and vegetables • Moldova has all the natural conditions for intensive development of horticulture. • Occupying only 6-7% of the arable land of the country, fruit growing ensures constant cash income to around 20% of sales agricultural products Fruits (2011) Production Area(fructiferous) - 88,3 thousands haAverage production - 4,1 tons / 1 ha Global production - 362,9 th. tons Distribution Export - 220.2 thousands tonsDomestic consumption - 75.4 th. tonsProcessing - 67,3 th. tons Vegetables (2011) Production Area - 34.3 thousands ha Average production - 10.1 tons/1 ha Global production - 361,6 th. tons Distribution Export - 55,2 th. tons Domestic consumption - 278.4 th. tonsProcessing - 28,0 th. tons
Priorities for investment in the sector • Establishment of new orchards with high productive and resistant varieties • Strengthening post harvesting and marketing infrastructure • Stimulating the production in greenhouses for extending the production season of vegetables • Development and implementation of modern technologies for fruit and vegetables processing
Export of the fruits and vegetables in 2007-2012, mil. USD
Basic legal framework for foreign investors • 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