Uncovering the full potential of the agricultural sector in Moldova: exports and opportunities for investment and state aid

Transcription

1 Uncovering the full potential of the agricultural sector in Moldova: exports and opportunities for investment and state aid Nepotu Ivan Moldovan Investment and Export Promotion Organization

2 Why is Moldova an attractive destination? Lowest wages in Europe for educated, multilingual 1 workforce Average monthly salary 190 Virtually all population is bilingual (Russian/Romanian), with many speaking English, French, Italian, Spanish 2 Globally attractive fiscal regime Attractive corporate tax rate (0% in 2011, expected 12% in 2012) Extensive network of double taxation treaties 10-year protection against any changes in the law that adversely affect FEZ 1 residents 3 Relatively stable macroeconomic indicators 4 Access to EU and CIS markets ( From Paris to Moscow and beyond ) Stabilisation of exchange rate to Euro and US-dollar IMF agreement Moldova is the only CIS country with autonomous trade agreements with the EU and FTAs with CIS countries 3 truck-days away to the port of Rotterdam International port access 1 Free Economic Zones

3 VITICULTURE AND WINE INDUSTRY INVESTMENT OPPORTUNITIES

4 Sector structure The total area of vineyards - 144,9 thousand hectares Global grape production varieties for table grapes thousand tons varieties of wine grapes thousand tons Structure plantations: 85% technical varieties (wine) 15% table grapes The types of wineries: Primary Wineries - 66 Secondary Wineries - 23 Mixed Wineries - 59 The number of individual grape producers The main grape varieties grown:

5 Structure of wine exports by country in 2009/ mil. USD

6 Key arguments to buy and consume Moldova wines Natural factors of Moldova as a combination of a unique microclimate (sun, rain, temperature), fertile soil, favorable geographical position on the same latitude as France and northern Italy. Novel variety Viticulture and winemaking is an activity, that is practiced in our country over the millennia Geographical area Tradition s Quality Unique Collections Distinct qualities: taste, flavor, properties, varieties. Collection of wine from Milestii Mici was included in Guinness Book at the category The largest collection of quality wines in the world (1.5 million bottles).

7 Needed Investments in the wine sector Implementing products quality and safety standards in wineries Wineries re-equipment Endowment of seven zone laboratories to determine products safety Stimulating the development of small and medium size wineries Vineyard replanting

8 INVESTMENT OPPORTUNITIES IN FRUIT AND VEGETABLES SECTOR

9 Production and Distribution in 2010 Fruit Production: Area thousands ha Average production tonnes / 1 ha Global production thousands tons Distribution: Export thousands tons Domestic consumption thousands tons Processing thousands tons Vegetables Production: Area thousands ha Average production tonnes /1 ha Global production thousands tons Distribution: Export thousands tons Domestic consumption thousands tons Processing (vegetable field) thousands tons

10 Needed Investments in Fruit and vegetables sector Planting new orchards Fruit and vegetables storage Fruit and vegetables processing

11 Arguments to invest in HV Agriculture in Moldova Access to EU and CIS markets (trade regimes and geographical location) The possibility of obtaining quality products Possibility of setting up joint ventures

12 Governmental Financial Mechanisms of Support for the Agricultural Sector

13 Support Measures(I) 1. Stimulate lending to farmers by commercial banks. Partial compensation of agricultural loans (the interest). Amount of support: up to 9500Euro for a beneficiary 2. Stimulation of agricultural production risk insurance. Compensation up to 60% of the cost of insurance premiums. 3. Stimulating investment in perennial plantations establishment. Amount of support: from 500 Euros up to 5000 Euro / ha of fruit growing and wine-growing plantation. 4. Stimulating investment in technological renovation of the animal farms. Compensation up to 40% of the cost of equipment intended for equipping and modernization animal farms.

14 Support Measures(II) 5. Stimulating investment to develop the infrastructure after harvesting and processing. Compensation is 30% of the cost of technological and machinery equipment purchased and installed for processing companies, drying and freezing of fruits and vegetables, processing of the animal products 6. Stimulation by compensating farmers for irrigation and draining energy costs. The support amount is 50% of the costs incurred for the use of energy to pump water for irrigation and drainage. 7. Stimulate purchase of breeding animals and to maintain their genetic fund Compensation is calculated as the amounts expressed as a fixed amount per unit of weight ranging from 1Euro/kg up to 4Euro/kg of animal purchased

15 MIEPO Who We Are? The leading Government organization with the main goals: To attract, facilitate and support foreign direct investments, as well as to assist foreign investors in expanding their businesses in Moldova To promote exports by assisting Moldovan companies to penetrate new markets Local companies Government institutions Foreign investors MIEPO Ministries International organizations Local Public Authorities

16 Our Key Objectives Improve the image of Moldova as an investment destination for foreign investors Develop a proactive approach with foreign investors providing concrete proposals for investment and site locations Identify and develop export market opportunities for Moldovan companies and expand our international network with foreign buyers and contacts Assist proactively Moldovan companies providing marketing support to increase export sales in existing and new markets

17 Successful Investors of the RM 17

18 Thank you for the attention! Moldovan Investment and Export Promotion Organization (MIEPO) Republic of Moldova, Chisinau, A. Mateevici str., 65 Tel.: (22) Fax: +373 (22) office@miepo.md Investment projects of the RM: