Five groups of producers from the field of horticulture will benefit from investment grants within the Facilitation of Access to Export Markets component of the World Bank-funded Moldova Agricultural Competitiveness Project, IPN reports.

The grants total 17.8 million lei. Minister of Agriculture and Food Industry Vasile Bumacov said the financial resources allocated by the World Bank and the own investments of 27.4 million lei will be used to purchase and set up refrigerating facilities and washing, sorting and packing lines.

“The groups of producers were selected out of nine applicants. It’s well known that to be competitive on the market, the producers must not only supply products of a high quality. It is important to satisfy the quantitative needs of the retail outlets. In this respect, the formation of groups by agricultural producers will allow constantly supplying large quantities of fruit and vegetables,” stated Vasile Bumacov.

The minister also said that the Law on Groups of Producers took effect. He voiced hope that the producers will understand the role of association and will fulfill the conditions stipulated by the law.

The grants program was launched in April 2014. A grant can represent at most 50% of the investments made by a group of producers.

Olga Sainciuc, program manager at the World Bank Country Office in Chisinau, said the second round to select participants for the post-harvest investment grants program was launched. The groups of producers that want to take part can file applications to the Agency for Payments and Intervention in Agriculture by October 30, 2014.

“The grants within this project are provided before the own investment is made. This is a very important aspect. The US$7 million grants program covers the period until 2017,” stated Olga Sainciuc.

Constantin Munteanu, the representative of a group of producers, said they will purchase modern hazelnut and almond cracking and packing equipment from Italy with the grants and the own investments in the total amount of about 1.8 million lei. The products will be exported to Ukraine for the confectionery industry.