Experts attest that Moldova has good chances to reach the amount of previous exports in 2007. Info-Prim Neo Economic Analysis

The tendency of Moldovan wines exports to foreign markets in 2006 has been a rather optimistic one, leaving the situation with Russia aside, the head of the Analysis, Forecast and Promotion Department of the Agri-Industrial Agency “Moldova-Vin”, Iurie Murdea, told Info-Prim Neo. According to him, when the resuming of exports to this country will be decided, Moldova has good chances to approach the number of annual exports of more than USD 300 mln in 2007, which in the last 5 years, before the embargo, was in permanent growth. In 2006, Moldovan wines have been exported to 44 countries, in which, except for Russia, the total amount of exports rose by about 3.5 times. Some companies from the domain, Murdea says, re-oriented themselves very seriously towards other markets. He specifically mentioned the "Chateau Vartely" Company which, although is a relatively young company, is present in very many states, including China. In this context, other companies have also been mentioned: “Vinaria-Purcari”, “Asconi”, “Vitis-Hanceşti”, “Vinaria-Bostavan”, “Cricova”, "Acorex Wine Holding", “Aroma”, “Bălti” etc. However, according to Murdea, Russia has been our traditional market, where Moldovan wines were well recognized and demanded in considerable amounts, and the ceasing of exports has been rather painful for the companies. 2005 statistics show that out of the total of exports USD 315 mln, 75-80% went to Russia. [Wine crisis has also had positive effects] The good part of the situation is, according to the specialist, that after resuming exports, Moldovan wines in Russia will be placed on a segment of higher prices. Although it is clear that the previous amounts of exports will not be reached so easily, Moldova’s niche being occupied in this period, Murdea expressed his belief that Moldovan wines will recover a great share of the former market. Although export to Russia has been reduced in general, except for the first months of the year, in 2006 total exports from Moldova haven’t decreased in the same measure, but only on a 40% level because of the re-orientation to other markets. This fact shows, in the opinion of the experts, that Moldovan wine enterprises are viable, competitive and capable to re-direct to other markets. The wine stocks are not very large, and this is another argument that Moldovan wines are rather qualitative, Mudrea mentioned. The most recent data of the “Moldova-Vin” Agency, for the 11 months of 2006, attest wine exports totalling more than USD 31 mln to Belarus, more than USD 30 mln – to the Ukraine, more than USD 20 mln - to Romania, and USD 9 mln - to Kazakhstan, about USD 4 mln - to Poland, USD 2 mln - to Germany, USD1.5 mln – to the Czech Republic, USD 1.3 mln – to Latvia, about USD 1 mln – to the USA and Great Britain. In total, in 11 months, exports constituted circa USD153 mln. [Moldovan wine producers to discover America] The Agency has positive forecasts for increasing exports this year to the Czech Republic, the Baltic Countries, Poland, Great Britain, the USA, Germany, and China. Japan’s market, also presents good perspectives for exports. In total, in 11 months of 2006, for the first time, exports totalling USD 300,000 have been operated to Japan, and this market is interesting in the perspective of exporting expensive collection wines. Also, Romania remains a market offering great perspectives, because, as the cited source asserts, if in 2005 exports to this country constituted USD 833,000, in 2006 they reached USD 20 mln. Although it has been recognized that some difficulties for the exports to Romania could appear after its accession to the European Union, and exporters will have to adapt to other standards, Mudrea is optimistic in this respect. A symbolic presence of Moldovan wines is attested in the Scandinavian countries, Italy, France, the Netherlands, Belgium, Luxemburg, Denmark, Israel, Turkey and others. The efforts of promoting Moldovan wines are also oriented towards these countries. Moldovan producers also intend to be present on the markets of South East Asia, including Singapore, Thailand, Vietnam, India; and Balkan countries - Slovenia, Croatia, Serbia. In the EU countries, Moldovan wines are exported on the basis of a quality certificate, named VI-1, and the other states require compliance and quality certificates issued by the Moldovan single national centre for verifying alcoholic production quality and documents issued by the laboratories from the destination countries, in compliance with their own standard systems. Referring to the State program of revitalisation and development of viticulture and wine production 2002–2020, Mudrea mentioned that 17,000 ha of new vineyards have already been planted, meeting exceptional quality and best European varieties of vine. Although the programs provides the renewal of 100,000 ha, this is not a limit for increasing planted surfaces, although the tendencies in some traditional wine producing countries are to reduce the surfaces because of the wine overproduction. According to specialists, even 150,000 hectares could be easily planted in Moldova, because in the soviet period 250,000 ha of vineyards existed here. At present, vine plantations occupy about 146,000 ha, 40,000 of which are part of the population’s individual farms and the rest are industrial plantations. Annual production of industrial wines constitutes about 20 to 25 mln dekalitres (1 dekalitre is equal to 10 litres). Moldova is the only country in the world which exports up to 95% of its total production of industrial wine, because the majority of the population has the possibility to produce and consume home made wine, the cited source affirms. 2006 hasn’t been a very fruitful year, because of frost in the last winter. However, on the other hand, thanks to the very sunny summer, the quality of wines has been an exceptional one for the last 10 or 20 years, Iurie Mudrea added, cited by Info-Prim Neo.