Former U.S. Ambassador Heather M. Hodges Speeches

Ambassador Heather M. Hodges' Remarks at the Annual Meeting of the Republican Union of Agricultural Producers Association (UNIAGROPROTECT)

March 5, 2004

Ladies and gentlemen, it is a pleasure to be here with you today as we celebrate another remarkable year for Moldova's Agricultural Producers Associations, and their union, UNIAGROPROTECT. Since the formation of UNIAGROPROTECT in 2000, the organization has dramatically expanded. With over 10,200 members, you represent more than half of all medium and large-scale land holdings in Moldova. I know you have accomplished a great deal together that you can be very proud of.

In the United States, we have similar organizations, such as the National Farmers Federation and thousands of local Farm Bureaus. These groups help farmers organize better, so their businesses can grow, better market their products, improve their productivity, and represent their interests to the government.

I am very pleased the U.S. Government has been able to contribute to the development of the agricultural sector in Moldova. As you well know, when Moldova began to privatize farmland and agricultural property several years ago, the old-style collective farms were in serious financial trouble: equipment could not be repaired or replaced; productivity had been steadily declining since the late 1980s; collective farm debts were nearly 3 billion lei.

But, after the completion of land privatization in 2001, agricultural and agribusiness productivity began to grow. Even though the severe drought in 2003 resulted in greatly reduced production of low value crops such as wheat, production of high value agriculture, such as fruits and vegetables, continued to grow.

And, the structure of Moldovan farmland is now more in line with the structure in the U.S. and Western Europe. Since the completion of privatization in 2001, over 75% of agricultural lands have been consolidated through market mechanisms into large and medium sized agricultural enterprises. So, today, the average size of a farm in Moldova is approximately 830 hectares, substantially larger than the average farm size in Western Europe, and comparable to the average farm size in the United States.

Private farming has brought investment to the Moldovan agriculture sector, and has been the engine behind its growth. The Government also has an important role to play. If growth is to continue, the Government of Moldova should encourage increased private investment in agriculture -- both domestic and foreign -- through it economic policies and a sustainable legal framework that will reduce risk and allow long-term planning for agricultural businesses. It can help promote exports. You have all demonstrated that private farmers in Moldova have the skills, talent, and work ethic to compete in world markets with quality products at competitive prices.

The United States Government is proud to continue to assist you in your efforts. I look forward to a continuing, successful partnership with UNIAGROPROTECT, private agriculture, and the Government of Moldova.