Transformation of the food industry in the Republic of Moldova: trends, challenges and prospects

Abstract

The food industry in the Republic of Moldova has a significant role, together with the agricultural sector, in the development of national economy, ensuring food security, support of the diversified and high added value exports, as well as generation of job places. Nowadays, the food processing sector is still one of the most dynamic and valuable branches of the industry, dominated by the wine-making sector, fruit and vegetable processing, dairy, meat, and bakery industries, which hold a substantial share of domestic consumption and exports. Despite all of these, productivity and competitiveness of the Moldovan food industry is hindered by the obsolete equipment and partial access to modern technologies, as well as insufficient investment capital in digitalization processes. Thus, the paper aims to analyze the key trends that outline the food industry in the country and present the persistent challenges like limited capacity of investment, fragmented supply chains and market fluctuations. Particular attention is offered to the potential causes of the European Union integration processes, which present new opportunities for enhancing competitiveness, but also requirements for stricter compliance with food safety regulations. Based on analysis of available empirical data and policy analysis, the paper highlights the strategic directions for the sustainable development of Moldova’s food industry, with an emphasis on innovation, export promotion and strengthening of public support mechanisms. The findings present that the transformation of the food industry of Moldova is essential not only for economic growth, but also for enhancing the resilience and long-term sustainability of the agri-food sector in the country.