Final Market Study for Fresh Fruits and Vegetables in Moldova

Moldova is a small agrarian country in Eastern Europe where agriculture accounts for 30% of GDP and 60% of exports. The country has fertile land and a temperate climate, but land is extensively "parcelized" with approximately 300,000 small farmers occupying 50% of the land. The domestic fruit and vegetables market in Moldova is largely satisfied by imports, with the country being a net exporter of fruit and a net importer of vegetables. The local production and marketing season could be extended to provide more competition to imports over a greater time period. The market structure for fruit and vegetables in Moldova includes open air markets, wholesale markets, supermarkets, and a myriad of small kiosks, as well as the HoReCa sector. Only 10-20% of the Moldovan population buys fruits and vegetables in supermarkets, and even then, it is not their main point of purchase. The vast majority of fresh produce is purchased in traditional open air markets and not in supermarkets. This is based on longstanding habits as well as the higher prices that can be found for produce in supermarkets. The domestic market is extremely price sensitive and consumers have limited buying power. Moldova is in the process of bringing its inspection and export procedures into compliance with EU quality requirements for fresh fruits and vegetables, which will be in force starting in 2012. In addition to export opportunities, Moldovan high value agricultural (HVA) producers have vast potential to improve overall profitability through domestic expansion in fresh and processed fruits and vegetables. To achieve this, there is a need to increase productivity, improve quality, and enhance market access. The study identified several key challenges facing the Moldovan agricultural sector, including the need to increase productivity, improve quality, and enhance market access. The study also highlighted the importance of extending the local production and marketing season to provide more competition to imports over a greater time period. Additionally, the study noted that the domestic market is extremely price sensitive and consumers have limited buying power, which can compromise food safety.