Agribusiness development

The agribusiness development within the AGROinform Federation is aiming to contribute to business development in the rural communities of Moldova. Our activities are focused of providing comprehensive services to entrepreneurs involved in the whole value chain. In accordance to the Federation strategy, the assistance to farmers is concentrated especially on post harvesting segment of the value chain.

The AGROinform team comes with specialized informational support and assistance for entrepreneurs in developing their own businesses, which includes:

        Accessing finance:

·         develop investment feasibility studies for new businesses and developing the existing once

·         develop logistics and implement investment projects followed by assistance

·         provide assistance in negotiations for accessing financing at advantageous conditions

·         develop business plans (applications) for accessing loans according to the requirements of financing institutions

·         provide assistance in accessing finance from IFAD Programs and RISP II Project

·         provide assistance in developing applications for accessing subsidies.

        Individual assistance:

·         optimize the production structure and develop income and expenditure budgets

·         perform economic analysis of farms for a correct decision making and efficient management

·         organize exchange of experiences and ensure knowledge transfer

·         organize business missions for farmers with negotiating and contracting products and equipment

·         train consultants and farmers in business development and efficient management.

A special emphasis in providing assistance to entrepreneurs is laid on supporting agricultural farms, which are oriented to the development of HVA crops (fruits, vegetables, etc), processing horticultural products and getting added value.

AGROinform is providing financing to farmers under advantageous conditions through the AGROinform crediting line in partnership with LTD „Mocroinvest”.

Crediting line AGROinform/Microinvest

AGROinform is providing financing to entrepreneurs that intend to invest in marketing activities, are oriented in developing high value agriculture and contribute to the development of the value chain by creating added value (post harvesting operations).

The credits for marketing activities for the Federation beneficiaries will be provided for: quality control of agricultural crops (supervision of agricultural products quality: implementing the total quality management systems and purchasing equipment for measuring and controlling the quality); storing/cooling products; processing products; sorting/grading/packaging products; labeling agricultural products.

At the same time, the AGROinform crediting line supports the development of the following production sectors through financing:

1.      Development of high value agriculture by creating production capacities for agricultural products with value added (fresh products) and namely:

a.      Development of capital investments in vegetable production cultivated on open field and greenhouses (investments to set up and modernize the greenhouses, glasshouses, tunnels and the infrastructure for their insurance);

b.      Development of fruit sector (including table grapes) and berries based on intensive and super-intensive technologies (investments in capital fix assets and a part of inputs).

2.      Development of capacities for producing mushrooms and medical herbs (investments in capital fix assets and a part of inputs).

3.      Development of animal husbandry sector by creating production capacities for animals with value added (including mini-farms located outside the village).

Crediting conditions:

1.      Marketing cooperatives – credits in the amount of up to 50,000 EURO.

2.      Entrepreneurs, members of business cooperatives – credits in the amount of up to 25,000 EURO.

3.      Entrepreneurs – credits in the amount of up to 10,000 EURO (exceptions can be the amounts up to 20,000 EURO when the business has an economic and social impact and is preponderant oriented on the development of post-harvesting activities).

4.      the clients that contract credits are fully responsible for their reimbursement (they have to ensure the collateral or to purchase it from the guarantee fund).

Interest rate:

·         Marketing cooperatives – annual interest rate - 15% to which commissions are added: 1% for short term loans (< 12 months) and 2% for long term loans (> 12 months)

·         Eligible entrepreneurs and members of marketing cooperatives – annual interest rate 17% to which commissions are added: 1% for short term loans (< 12 months) and 2% for long term loans (> 12 months)

·         The interest rate is floating.