Moldova’s agrifood sector can propel economic growth, experts say

Moldova’s agrifood sector can propel the economic growth of the country, say the experts of the Union of Agricultural Producers “UniAgroProtect”, who describe the assertions that the agriculture can be rewarding from economic viewpoint only if practiced on plots of land at least 5,000 hectares in area as hasty and unfounded. Igor Vatamaniuc, vice president of “UniAgroProtect”, told Info-Prim Neo that the simplistic vision that the efficiency of the agricultural land depends on its size is outdated. He said that the determining factors are the equipment with modern technologies, the effective management of the business and the ability to react quickly to the demands of the prosperous markets. As regards the area of the plots of land, a study carried out by the Center for Strategic Investigations and Reforms in 2004 shows that the agricultural land in Moldova is about 800 hectares in area or tenfold larger than in most of the European states. France, a highly industrialised state, made important incomes from exports of agricultural products. Champagne production alone brings over 4 bln EUR, which is comparable to an industry that produces passenger aircraft. The traditional sectors have a major economic potential and by ignoring this potential, one can suffer regrettable consequences. It should be noted that the agriculture and processing industry in Moldova generates about 60% of the income from exports. Igor Vatamaniuc says that Moldova needs a new vision on the agrifood sector. The world economy globalisation and the technical-scientific progress offer new possibilities of raising the effectiveness of agriculture similar to the one of many industrial sectors. These tasks can be accomplished by orienting, first of all, towards the high value agricultural products. The dynamic development of the country’s winemaking and winegrowing sector (together with the adjacent service sectors) seen until 2006 and Moldova’s positioning among the first ten wine exporters in the world shows the potential of the sectors with competitive advantages. According to the study of the competitiveness of the exports of Moldovan high value agricultural products carried out under the aegis of the United States Agency for International Development (USAID), gardening has a similar potential. Fresh fruits, vegetables and walnuts represent the most important part of the high value agriculture. They produce yields that are threefold higher than those produced by other basic crops such as grains, sugar beet and sunflower. The international conference “Agribusiness in Moldova: Propeller of Economic Growth” will be organised in autumn. It will bring together leaders of the private sector, decision makers from the central administration, international business and donor community. They will discuss the opportunities and challenges of the agribusiness as key force of economic growth in Moldova. The initiative was put forward by the companies Alfa-Nistru, Moldova-Agroindbank, Codru ST, Anturaj, Agrostoc, Natur Bravo, Orhei-Vit, Ecoplantera, Basfruct, Mavisem, Monicol, Sauron, UniAgroProtect and the Citizens Network for Foreign Affairs CNFA.