A Road Map for Investors in Moldovan High Value Agriculture

The country's traditional reputation as a low-cost producer of high value crops is currently questionable due to reduced yields registered over the last decade. However, if irrigation levels and technology were to be restored, especially since inputs are increasingly available, then there is every reason to believe that Moldova could be a very competitive low-cost producer of high value crops. The Moldovan Government has a complex understanding of agriculture and puts energy into increasing agriculture products quality and output, as well as post-harvest processing capacities. Agriculture is related to rural areas, where over half the population lives and agriculture is the main source of employment and earnings. International donor projects like the Agricultural Competitiveness and Enterprise Development Project (ACED) and the Millennium Challenge Corporation's Compact program with its irrigation and road rehabilitation projects are set to bring their contribution to make agriculture more efficient and by that, increase Moldova's social and economic sustainability. High value agriculture offers a lot of answers to numerous challenges that agribusinesses are facing in Moldova. Increasing primary agricultural production would give a boost to the agro-processing industry and enhance the country's export base and would certainly lead to sustainable broad-based economic growth. In 2010, Moldova's agriculture output stood at 20 billion MDL, out of which about 66% (13 billion MDL) was production of fruits and vegetables. Agriculture gross added value reached 5.5 billion MDL, contributing with 10% to economy's gross added value and making agriculture the third engine of Moldova's economy. To establish a business in Moldova, investors must follow several procedures, including registering the business, obtaining a Type "C" or Type "D" visa, and hiring staff. The business must also obtain a work permit and register with the tax authorities. Additionally, investors must develop their site, mobilize financial sources, and access seeds and planting material. The report provides a roadmap for investors in Moldovan high value agriculture, outlining the necessary steps to establish and operate a successful agribusiness in the country. The report highlights the importance of facilitating investors' access to Moldova's HVA sector opportunities, particularly in the context of the country's complex understanding of agriculture and its efforts to increase agriculture products quality and output. By providing a straightforward guide to operating an agri-business in Moldova, the report aims to help local and foreign investors navigate the necessary steps to establish and operate a successful business in the country's high value agriculture sector.