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....."Quality is a tradition" Viticulture and wine industry Investment opportunities.

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Presentation on theme: "....."Quality is a tradition" Viticulture and wine industry Investment opportunities."— Presentation transcript:

1 ....."Quality is a tradition" Viticulture and wine industry Investment opportunities

2 Legal aspects Law No. 57 on the vineyard and wine of provides the legal, economic and social framework for grape cuttings growing, viticulture and winemaking. It also regulates the production, processing, marketing, production of planting material for wine varieties and table and technical grapes and other products prepared on the basis of must and wine. Law on the production and circulation of ethyl alcohol of No provides the legal, administrative, and quality control framework for the production and distribution of alcohol and its derivatives. Program for rehabilitation and development of viticulture and wine industry adopted by Government Decision No of has as main goal to develop a strong branch of high quality grapes and wine products, competitive on the market and having high economic efficiency. Government Decision Nr.1366 concerning the assignment of the viticulture areas of , provides the delimitation areas for wine regions, centers and fields. It also contains the list of localities included in the centers in charge of vine cultivation.

3 Sector structure  The total area of vineyards - 144,9 thousand hectares  including varieties of table grapes ha varieties of wine grapes ha  Global grape production varieties for table grapes thousand tons varieties of wine grapes thousand tons  Structure plantations: 85% technical varieties (wine) 15% table grapes  The types of wineries: Primary Wineries - 66 Secondary Wineries - 23 Mixed Wineries - 59  The number of individual grape producers The main grape varieties grown: White Aligote – 23% Rkaţiteli – 15% Sauvignon – 9% Feteasca albă – 7% Chardonnay – 4% Riesling Rhine – 3% Traminer – 2% White Aligote – 23% Rkaţiteli – 15% Sauvignon – 9% Feteasca albă – 7% Chardonnay – 4% Riesling Rhine – 3% Traminer – 2% Red Merlot – 9% Cabernet –8% Pinot Noir– 7% Red Merlot – 9% Cabernet –8% Pinot Noir– 7%

4 Wine regions Northern part (Balti) - is famous for grapes cultivated in order to obtain raw wine to produce divins and fortified wines. It also specializes in growing table grape varieties, in the same time there are produced fine white wines. Central part(Codru) - is the most favorable for cultivation of white grape varieties to produce light white wines. Here is the biggest area of vineyards, about 60%, and most wineries. Wines produced here are fresh and soft, having deep floral redolence. South Eastern part (Stefan - Voda) - The area benefits from perfect climate condition for pure red grape varieties like Merlot, Cabernet Sauvignon and, of course Rara Neagra that is originating from these places. Wines are perfectly balanced taste with a rich bouquet and flavors of morocco, black currant and oak. Southern part (Valul Traian) - in this area natural and climate conditions are favorable for growing grapes from which red and dessert wines are produced.

5 Export of alcoholic beverages in 2010

6 Statistics thousands decalitres, 2010

7 Strengths Secular traditions of vine growing and wine production 100% natural grape fermentation 94% of vineyards are owned by private companies and entrepreneurs A wide range of wines and divins for the most refined tastes Natural factors - a unique micro-climate grape growing, rich soil Close geographical location – on the border of EU Cost Advantages: Moldova has the lowest labor cost in Europe A relatively competitive price for final production Available resources for scientifically based production of wine and research on winemaking and viticulture.

8 Viticulture and winemaking is an activity, that is practiced in our country over the millennia Natural factors of Moldova as a combination of a unique microclimate (sun, rain, temperature), fertile soil, favorable geographical position on the same latitude as France and northern Italy. Natural factors of Moldova as a combination of a unique microclimate (sun, rain, temperature), fertile soil, favorable geographical position on the same latitude as France and northern Italy. Collection of wine from Milestii Mici was included in Guinness Book at the category The largest collection of quality wines in the world (1.5 million bottles). Specific: The wine produced in Ialoveni is actually a Xeres wine, drink "Prometheu is in fact a wine Porto wine, “Luceafar” is actually a wine of Madera, the Moldovan equivalent of Cahor are red and rosé dessert wines "Pastoral," "Bouquet of Moldova “ is made by the same technology as vermouth Specific: The wine produced in Ialoveni is actually a Xeres wine, drink "Prometheu is in fact a wine Porto wine, “Luceafar” is actually a wine of Madera, the Moldovan equivalent of Cahor are red and rosé dessert wines "Pastoral," "Bouquet of Moldova “ is made by the same technology as vermouth …. and Moldova is an ideal location because : Distinct qualities: taste, flavor, properties, varieties.

9 Investments in wine sector Government investment IFAD-International Fund for Agricultural Development EIB-European Investment Bank *Estimated value

10 Tax facilities for investment Implementing a special tax regime, under which agricultural enterprises pay a single tax -land tax: farmers are exempt for a period of five years of income tax, real estate tax, road tax and use tax ю Companies that make ​capital investments exceeding the amount of 250,000 U.S. $ are exempted from income tax in the amount of 50% over five fiscal period, provided that at least 80% of the income tax is calculated and not paid from the budget reinvested in the development of their production. VAT Return on investment (spending) of capital, except for house construction investments and investments in transport (except Chisinau and Balti) Subsidies: Measure 3. Stimulating investment for the establishment of perennial plantations Objective: Increasing productivity and competitiveness of the production of fruits, berries and grapes by implementing modern technologies. - To establish orchards of grafted trees -10 thousands lei per/hectare - To establish plantations of grape-vine: a) table grape varieties - 30 thousands lei per hectare, b) varieties of grapes for wine - 20,000 thousands lei per hectare, c) graft and rootstock plantations – 50 thousand lei for a hectare.

11 Core problems of the sector Insufficient markets Lack of a well-planned strategy in the wine sector aimed to products’ promotion Price-quality coherence Insufficient marketing capacity and institutional capacities

12 Development Priorities A comprehensive strategy for promotion Enlargement of export markets Increased control over wine production technologies Accession of foreign and local investments in wine Creating a unique trademark for Moldovan wines


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