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| News Article Vegetable Packing Plant Design in Moldova Moldova is the smallest and one of the poorest of the former countries of the Soviet Union. However, blessed with a very high percentage of arable land (over 30%), generally fertile soils, and good access to water, it was formerly a large supplier of fruits and vegetables to Russia and the other Soviet countries. The rail and highway systems were good, and there was easy access to large neighboring markets, such as Russia, Romania, Ukraine, and Belarus. But after the collapse of the Soviet Union in 1991, the irrigation system began to deteriorate, and the production of fruits and vegetables began a rapid decline. Fruit production led by apples and table grapes, began to recover in the last few years, and the United States government has taken an active role in assisting the modernization of agriculture in Moldova. This has included the writing of the first legislation in all of the 16 former Soviet countries that allowed agricultural land to be used as collateral for bank financing. While fruit production and exports have flourished, now at over 90% of total fruit and vegetable output, vegetable production has lagged. The country did not have a tradition of producing high value crops (such as tomatoes, bell peppers, cucumbers, eggplant, etc.), and local production has been concentrated on the traditional root/storage crops, such as beets, carrots, potatoes, and onions. In addition, there is nearly a complete absence of cold storage facilities, refrigerated transportation, and modern packing plants in the country. The Ministry of Agriculture of Moldova requested assistance from the U.S. government and USAID to stimulate the vegetable industry, and recently Novelle principal Henry Winogrond led a team that designed vegetable packing plants that were appropriate for existing conditions in Moldova. A team of four people that included a refrigeration/design engineer, a postharvest expert from the U. of California/Davis, a financial expert, and Mr. Winogrond spent a few weeks surveying the existing production and storage assets in the country, the local design and construction capabilities, the local financing capabilities, and the marketing opportunities of various high value vegetables. A few weeks after the visit to Moldova, a report was delivered to USAID and the Ministry of Agriculture of Moldova that included several models of vegetable packing plants. The designs were done both on a “ greenfield “ basis ( assuming no existing buildings or infrastructure ), and on the basis of the reconstruction of existing assets. Detailed engineering plans were delivered, including operational drawings of the packing plants, specifying the required equipment and personnel. In addition, complete financial models were prepared for each of the packing plant examples, showing the investment detail, the Profit and Loss statement, the Balance Sheet, the Cash Flow, and the assumed Loan Schedule.USAID is planning on using these models to analyze the proposals from various local investors who would like to build packing plants for the export vegetable business, and grants will be made available to assist the candidates with the highest chances of success. Done properly, Moldova will again become a solid vegetable exporter to its neighboring countries. |
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