Opportunities for investment into organic horticulture

25.02.2021

Picture: Christoph Arndt

In Moldova, AFC has facilitated investments of two companies who play key roles in organic value chains. To further develop organic farming in Moldova, AFC prepared a report providing information to policy makers, development agencies and private sector on the past achievements in the Moldovan organic sector and advocating for more investment for the sector to grow. It demonstrates why horticulture in organic farming enjoys great opportunities, but also pleads for another way of support away from the narrow value chain approach to a more holistic style as sustainable organic farming depends on circular agriculture with livestock and the production of legumes.

For the way ahead, this report recommends:

  1. To focus more on organic horticulture as Moldovan horticultural products are already intensively traded with customers in EU and Russia. Two examples are given for which the market is currently wide open if produced at larger volumes: Certified organic first-quality shelled walnuts and fresh plums.
  2. From donors as well as international development banks, however, a holistic support of organic farming systems will be necessary: Such support must include not only horticulture, but also arable crops (to grow legumes) as well as ruminant livestock. The value chain approach which tends to ignore every farm activity not directly related to the final product is not really suited to support organic agriculture development.
  3. The Ministry of Agriculture is advised to make better use of the experiences gained in countries with a more advanced organic sector in order to finalise the new organic law which gets Moldovan certificates recognised by the EU. Moldova’s major development partners such as USAID, the EU as well as EU member states should be prompted to contribute to organic agriculture development at all levels, from the setting of framework conditions to B2B linkages and capacity building at farm level.

Read the complete report:

Since 2018, AFC has been implementing a technical assistance project (2.384m EUR) funded by the European Investment Bank to support its operation “Fruit Garden of Moldova”. This loan operation worth up to EUR 120 million is offered by the EIB to the Government of Moldova. Via seven commercial banks, loans are extended to farms and enterprises from the Moldovan horticulture sector in order to support the modernisation process throughout the entire value chain. 

For further information related to this report please contact: Christoph ARNDT (), Andrei LOZAN ()