The dairy industry plays an important economic and social role in the Republic of Moldova. By generating an estimated share of 12 percent of the total value-added in the Moldovan food industry, the dairy industry is an economically important sector. Moreover, the sector also has important social ramifications, because the Moldovan dairy producers purchase more than 90 percent of the raw milk used as production input from small farms or individual households. With such a strong inter-sectors relationship, it is clear that any positive or negative shock falling on the producers of dairy should be expected at least partly to be felt by the primary producers of the milk and vice-versa...
This document is published as part of the project „Understanding the Association Agreements (AAs) and Deep and Comprehensive Free Trade Areas (DCFTAs) between the European Union and Ukraine, Georgia and Moldova’” funded by the Swedish International Development Cooperation Agency (SIDA). The project is led by the Centre for European Policy Studies (CEPS) and conducted in partnership with the Institute for Economic Research and Policy Consulting (IER) in Kyiv, Expert-Grup in Chisinau and Reformatics in Tbilisi.
The author would like to express his gratitude to Michael Emerson and Denis Cenusa for their valuable comments and suggestions. However, the views expressed in this publication belong to the author alone and cannot be attributed collectively or separately to the funding donor, the implementing organizations or other individual experts.