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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

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

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

  2. 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

  3. SHARE OF FRUIT AND VEGETABLES IN VEGETAL PRODUCTION,%

  4. SHARE OF FRUIT AND VEGETABLES SURFACES BY CATEGORYFRUIT VEGETABLES

  5. PRODUCTION AND DISTRIBUTION IN 2010

  6. GEOGRAPHICAL AREAS FAVORABLE FOR FRUIT PRODUCTION NORTH - Seed fruits CENTERand SOUTH -Stone fruits CENTER and NORTH  - Nuts Throughout  territory- gourds Seed fruits Nuts Stone fruit

  7. GEOGRAPHICAL AREAS FAVORABLE FORVEGETABLE CULTIVATION Concentration of vegetable cultivation is in bed of the Nistru and Prut rivers,  favorable conditions existing   throughout the territory Vegetables

  8.  PRIORITY DIRECTIONS FOR INVESTMENT INTHESECTOR • Planting new orchards • Fruit and vegetables storage • Fruit and vegetables processing

  9. 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

  10. 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

  11. ADVANTAGES • Access to EU and CIS markets  (trade regimes and geographical location) • The possibility of obtaining quality products • Possibility of setting up joint ventures

  12. 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).

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