CNFA: Press Release

CNFA: Press Release

• 12.02.2010

 Assisted by CNFA, the „Premium Fruct” Cooperative finds new ways to access foreign markets for Moldovan apples

Starting February 11-19, 2010, the Business Cooperative „Premium Fruct” will apply advanced techniques to create ways of accessing foreign markets for Moldovan apples. The above mentioned techniques are related to the development of a quality control program and a model purchasing and sales contract of apples, as well as optimizing the cooperative’s business and operational plan for 2010.

The cooperative will be assisted in the development and testing of the techniques by the American volunteer George Lamont. The volunteer will also assist representatives of the cooperative’s management at the meetings with current or potential members, to share experience based on the activity of US marketing cooperatives and will offer support for negotiating and concluding sales contracts.

„Premium Fruct” strives to become a model cooperative which would contribute to the implementation and adoption of advanced fruit marketing practices and expedite the export of agricultural products. In its first year of activity, the cooperative managed to export about 2,5 thousand tones of apples to the Russian Federation and Kazakhstan. This year, it aims to increase the quantity of exported apples to four thousand tones. At the same time, „Premium Fruct” intends to break into the apple markets of some European states including the Czech Republic, Bulgaria, Romania and the Baltic States.

„Premium Fruct” is the first Moldovan cooperative to obtain a long term export contract for fresh apples. The same contract laid the foundation for the cooperation of five out of the fifteen growers in Moldova implementing modern apple growing standards (GlobalGAP). The cooperative plans on attracting other apple growers which are willing to market their produces at a better price and become members of a cooperative which relies on professionalism, transparency and efficient management.
The „Premium Fruct” cooperative was founded in early 2009 by a group of members of the “Moldova Fruct” Apple Exporters’ Association. The “Premium Fruct” members own apple orchards situated mainly in the central and northern part of Moldova with a production capacity of five thousand tons of fresh apples per year.

The research carried out by CNFA showed there are markets for Moldovan fresh produce. Currently, the best preferred market by the Moldovan producers is Moscow and other Russian urban centers, which have considerable purchasing potential and minimum quality requirements. The biggest competitors for the export of Moldovan products to Russia come from Poland, Serbia, Belgium, Hungary and Italy. The Moldovan growers would have a substantial competitive advantage if they reach the existing productivity level, quality control, storage and packaging, offered by their current competitors.

One of the main issues for the export of the Moldovan agricultural products resides in the creation of considerable amounts of standardized products (quality-wise) by small growers,. Currently, even the biggest Moldovan fruit and vegetable growers are unable to meet the minimum quantity requirements of the Russian distribution chains or supermarkets from other European countries. One of the solutions identified by CNFA would be the development of a legal and institutional framework, allowing to create a collecting infrastructure under fair conditions, so the growers have sufficient quantity to negotiate with the large distribution networks.
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CNFA is an organization for international development from USA, founded in 1985, which is dedicated to increasing rural incomes by empowering farmers and rural entrepreneurs. CNFA activity is focused on agricultural development which is based on the initiatives to facilitate market access, enhance agribusiness competitiveness, increase productivity, and improve access to inputs and credit for businesses. CNFA has a successful track record of performance in Africa, Eastern Europe, the Middle East, and Central Asia, and has managed over $200 million in donor-funded agriculture development programs over the past decade. CNFA is currently implementing the five-year “Farmer to Farmer” Program, worth $2.5 million, and has recently concluded the $12 million-worth Agribusiness Development Program.

For details please contact Nadejda MOCANU, “Farmer to Farmer” Program Coordinator (tel.:240311, 069260005, nmocanu@moldova.cnfa.org, www.cnfa.md)