1. Investment opportunities in livestock sector

2. TABLE OF CONTENTS  Legal framework  Structure of livestock sector  Favorable regions for animal husbandry  Main export markets  Challenges  Sector priorities  Reasons to invest in livestock sector  Support mechanisms  Investment possibilities

3. LEGAL FRAMEWORK in the field of investments:  Law on investment in entrepreneurial activity no. 81 from 2004  Law on public private partnership no. 179 from 2008  Law on free economic zones no. 440 from 2001 in the livestock sector:  Husbandry Law no. 412 from 1999  Law on selection and reproduction of animals no.371 from 1995  Law on beekeeping no. 70 from 2006

4. STRUCTURE OF LIVESTOCK SECTOR

5. FAVORABLE REGIONS FOR ANIMALS HUSBANDRY North Centre South North region Due to its climate conditions is more suitable for cattle breeding, Centre and South regions are favorable for breeding of other species (pig, poultry, sheep, goats)

6. INSTITUTIONAL STRUCTURE BY TYPE OF PRODUCTS MILK AND DAIRY SECTOR INDEXES IN 2010 Scientific-Practical Instititute of Biotetehnologies in Husbandry and Veterinary Medicine Republican Center for Improvement and reproduction of Animals Milk collecting points (600) Dairy processing plants Market chain (supermarkets, agri-food markets, specialized shops) Cows– 154, 4 thousand heads Production– 591,2 thousand tones Consumption- 642,0 thousand tones Processing- 118,8 thousand tones

7. INSTITUTIONAL STRUCTURE BY TYPE OF PRODUCTS MEAT (BEEF and SHEEP MEAT, PORK, POULTRY) Beef and Sheep Institute of Biotechnologies (genetics) Animal keepers Bulls/sheep fattening farms Slaughterhouses Meat processing plants Trade chains Pork State Enterprise “Moldsuinhibrid” (genetics) Breeding farms Slaughterhouses Meat processing plants Trade chains Poultry meat State Enterprise “Avicola Moldova” Reproduction centers Broiler Chicken production facilities Slaughterhouses Meat processing plants Trade chains Production: 19,6 thousand t Consumption: 10,0 thousand t Export (beef):1,2 thousand t Export (sheep):1,3 thousand t Production: 73,2 thousand t Consumption: 52,5 thousand t Production: 54,9 thousand t Consumption: 39,0 thousand t

8. MAIN EXPORT MARKETS (2010)

9. CHALLENGES  Insufficient milk production for processing (Only 30 % of dairies’ capacities are used)  Law level of technological endowment of farms

10. SECTOR PRIORITIES  Fulfillment of EU sanitary veterinary to be allowed to exports meat and milk products  Attract investments in tehnical upgrading of farms for milk production  Re-launch and diversify export markets (e.g.to negotiate re-launch of pork to Russian Federation market)

11. REASONS TO INVEST IN LIVESTOCK SECTOR  Attractive factors of production: Large areas of grassland Favorable climatic conditions High quality of soil Labor force for advantageous cost Lease of agricultural land for long term (up to 30 years)  Fiscal incentives: Tax for corporate profits is 0 % VAT exemption in free economic zones  Favorable geografical location: Access to CIS and EU markets

12. SUPPORT MECHANISMS State subsidies Credits at attracting rates provided by IFAD Upgrading and technological renovation of livestock farms Procurement of breeding animals and keeping genetics 40 % of cost for equipment for cattle farms 30 % of cost for equipment for other species farms Development of livestock and poultry

13. INVESTMENT POSSIBILITIES  Establishment of milk farms and milk processing plants  Upgrading and technologization of milk farms  Creating farms of fattening and slaughtering of cattle  Genetic improvement of animals  Implementation of Public Private Partnership Projects with Scientific-Practical Institute of Biotechnologies and Veterinary Medicine (in the field of embryo transfer, milk processing, improvement of management practices of animal breeding)