Moldova’s 4000 year old grape industry is trying now to export its wines ..

Ricardo explained comparative advantage using the Portuguese wine and British cloth example (comparative adv celebrated its 200 years recently). So wine has this interesting connection to figuring economics. There is a journal on  wine economics as well.

So came across this Interesting bit on EBRD website. It tells us how EBRD is trying to help Moldovan wine. Moldovans have rich traditions as they have been cultivating grapes for 4000 years:

Moldova’s wine-makers are only partly known in European countries. And yet they can look back on a proud 4,000-year-old tradition of cultivating grapes in the country’s river valleys.

It is thus not a surprise that Moldova boasts some enormous wine cellars, including the world’s largest, Milestii Mici, covering an area of 200km of subterranean galleries – putting any sci-fi, life underground fantasies to shame. Yuri Gagarin,the cosmonaut and first man in space, stayed for a tasting in neighbouring Cricova, supposedly re-emerging only two days later.

“Our wines are very well known locally,” said Alexandr Rudenko, Director of Vinaria din Vale. “We hope to gain the same recognition around the globe in the near future.”

So where, if you’ll pardon the pun, are the bottle-necks? Why do only those business-travellers, tourists and eastern European enthusiasts in-the-know know about Moldovan wine? How can it conquer the world?

“It is naïve to think that people will magically know about us,” said Mr Rudenko. “We realised that our company needed expert support in the area of marketing and turned to the EBRD for help.” The EBRD’s Advice for Small Business worked with Vinaria din Vale to improve the marketing of its wines. It brought the company into contact with a local expert, who analysed its existing and upcoming competition.

He also created a website to present Vinaria din Vale’s vines to the outside world and to sell them, through online sales. 1,500 people have visited the website every month since its launch. Many of them were European exporters, so that the company was able to develop new business partnerships.

“There are many export opportunities for Moldovan businesses – now more than ever, since Moldova signed a free trade agreement with the EU a few years ago,” said Veronica Arpintin from the EBRD.

“Moldovan wineries, fruit processors, manufacturers and service providers increase their sales on international markets and they win EU consumers and become globally competitive.” 

The EBRD supports companies in Georgia, Moldova and Ukraine to trade with the EU in many ways: €380 million in credit lines and trade finance for partner banks help SMEs to modernise their equipment and raise their products and practices to EU standards. There are also direct financing available and advisory services to provide businesses with the know-how to grow. These projects are supported by the EU through its EU4Business initiative.

More than 60 per cent of Moldovan exports go to the EU – making it by far Moldova’s most important trading partner.

 

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