Developing a record soft, buying pregnant cows, technical equipment, agricultural machinery and building stables are just some of the Investment Plan activities proposed as a result of the new Market Study of the dairy products development potential in the Republic of Moldova, realized by the Investment Agency at the request of the National Association of Milk and Dairy Producers.
The study was presented in an online meeting, on March 25, with the participation of local authorities and producers interested in the animal husbandry sector and those who want to revive or start a business in this field .
According to the Study, in the last 3 decades, the milk production industry is experiencing a continuous decline. Official statistics for the last 10 years outlined a drastic decline of the milk production by 38% between 2009-2019. The import registers an increase of 405%, comparing the years 2009 and 2019, thus representing 30% of the total milk consumed. 94% of local milk is produced by households (families) and only 6% of milk used for processing comes from agricultural enterprises.
Rodica Verbeniuc, General Director of the Moldovan Investment Agency: “The Agency's support is based on the consistency of the implemented support actions dedicated to domestic producers and exporters from various sectors of the country's economy, to help increase their skills and export capacity. The study reconfirms the development potential of the unexplored sector, and spots out practical solutions for renewing and boosting business in this field. The Investment Agency reconfirms its intention to financially and technically support the implementation of the following research items. "
The Investment Plan will be divided into 3 phases, which will contribute to the agricultural enterprises ' milk production increase by 4% to 60%. This percentage increase will both increase the actual milk production in tonnes and determine the amount of investment required.
The State Secretary of the Ministry of Economy and Infrastructure, Iuliana Drăgălin, said that to have export rights in the European Union implies a wider spectrum of procedures and activities to be implemented at national level. "Currently, the European Commission examines Republic of Moldova’s file for the respective sector which could be followed by an audit mission similar to the one planned in April for animal products."
According to the Study, the main dairy products exported, by monetary value in 2019, were - approx. $ 5.5 million. Cheeses were the main dairy products exported, not only in 2019 but also in the last 5 years, registering an average weight of approx. 58% of total imports (in value), and in 2019 it dominated the value of exports, having a share of 93%.
The study shows that Moldova registers a negative Trade Balance of dairy products with an annual average decrease of -28% annually. Imports exceeded exports by almost -52 million USD in 2019. In 2015 this indicator was of approx. -20 million USD. Respectively, the Trade Balance registered a negative trend of -161% in the last 5 years.
The market study of the dairy products development potential of the Republic of Moldova can be downloaded here.