Eco-Logistic still supplies a handful of retailers with cherries, apricots, plums, and grapes in Belarus and Latvia - prices are stable, even high in some weeks, begins sales manager Gheorghe Chisalita – but 70% of this Moldovan fruit trader's products go to Western Europe. "That's a deliberate choice. Plus, transport to France, the Netherlands, and Germany is now €1,000 to €2,000 cheaper than to Belarus or Latvia, which easily costs in season €5,000," he says.
Eco-Logistic's managers Gheorghe Chisalita and Ciprian Topa
Eco-Logistic's name refers to, on the one hand, the value the fruit trading company places on sustainability and, on the other, the logistics activities co-owner Ciprian Topa did previously. The company exports some 3,000 tons per year, an amount that should double in the coming years. 'That's not on the cards this year, though. All fruit harvests are about a third smaller due to bad weather conditions at various stages of cultivation," Gheorghe says.
From Belarus to France
When the business was founded in 2017, it focused on exporting fruit to Belarus and Latvia. In 2019, contacts were made in Romania, Poland, and Germany, and during the pandemic, France and the Netherlands were added. Anno 2024, Eco-Logistic exports almost three-quarters of its fruit to Western European countries. "Produce that presents slightly less well but is still high quality remains in Eastern Europe."
Plums on the Rungis wholesale market
In France, through their our distribution company, SAS Terra Moldova, which handles logistics and makes sure the products meet the strict quality requirements of the French market, they have a direct way to serve the French market quickly and efficiently. But France is not the easiest market, Gheorghe admits.
"There are many restrictions, the French are no strangers to red tape, and they like protecting their own cultivation. But by working with a large local distributor there, we managed to get a foothold. Quite a few kilos of our plums are traded on the Rungis wholesale market under the Vale Oh! and Terra Moldova brand. Still, there's no denying that the Moldova brand fares better in the Belgian, Dutch, and especially German markets. Germany had been familiar with our plums for some time. Before they discovered the fresh product, significant volumes were already going there for processing."
Once Eco-Logistic can pack in punnetts - plans are being drafted - they will contact German retailers. "We also supply a major Dutch importer with boxes of our Terra Moldova brand, and soon we will add Vermar to offer a more premium option. It's a beautiful word derived from the first names of both our wives: Veronica and Marina," Gheorghe explains.
Bustling fall months
When it comes to logistics to the EU, he explains that, in the last three months of the year, you can well expect congestion at the Romanian border. "That's when a lot of plums and grapes are exported, along with grain from Ukraine going to the port of Constanta. Sometimes, you see 500+ trucks queuing there. And although vehicles carrying fresh fruit have a sign saying 'perishable goods,' they sometimes queue too. In early September, we load about three trucks a week; by early October, it's 10, and by the end of that month, it's more than 15. And we're obviously not the only exporter."
Analyses and credit
Eco-Logistic sources its fruit from regional growers. To get uniform batches - an absolute must for exporting to the European Union - it carefully sorts for quality and size but also exhaustively analyzes color according to the target market's phytosanitary requirements. 'Growers must be part of that story, and we help them do that. In March and April, we make credit available," the sales manager says.
"They can purchase all the necessary inputs to deliver products that meet the set quality standards. We also provide financial support for larger investments. If a loyal supplier wants to upgrade his plots by installing an irrigation system - which is really a no-brainer in these times of climate change - we're happy to help. That would involve at least 15 hectares. For a smaller area, it makes little sense; the ROI is simply too low.'
BelOrta as model
Gheorghe's dream is to build a cooperative model. 'I once visited BelOrta in Belgium, and what I saw there opened my eyes," he recalls. "I have nothing but admiration for such organizations. However, getting something like that off the ground in a country where, after half a century of communism, minds aren't open to cooperatives in a free market context will take years. It will require young growers, while many current growers are approaching retirement age. Yet it will work. Some growers are getting increasingly bigger, though not enough to approach retailers in Western Europe themselves. To succeed, we must join forces."
Besides planting a super-intensive plum orchard and vineyard, Eco-Logistic wants to build a large facility with cooling areas and modern sorting and packaging lines in the next few years. Currently, they rent space for that and sort and pack by hand. "But as requirements in destination markets become increasingly stringent, sorting by internal quality will become a necessity," concludes Gheorghe.
For more information:
Gheorghe Chisalita (Commercial Director)
Eco-Logistic Group Ltd
str. Calea Orheiului, 107, of. 100, Chișinău, MD2020 – Moldova
Mob: +373 68 178 725
[email protected]
https://ecologistic.md/
Already published in this series:
1. Introduction 1: The EU embraces Moldova, regarding trading too
2. Introduction 2: Tariff-free fresh produce exports to EU a boost for Moldovan exporters
3. Terra Vitis: Trying to find the best seedless grape for our climate
4. PDG Fruct: We want to be the region's stone fruit logistic hub
5. Velfruct: We export apples and plums to ten EU countries, with three more planned
6. Staragro: Antony Blinken enjoyed Moldovan cherries
7. Dor Fruct: You get good prices for quality plums throughout November
8. Moreller: Besides Spain, Germany and Belgium we hope to soon supply cherries to Scandinavian retailers
9. Fruct Grup: Agritourism can supplement our cultivation activities nicely
10. Ionex Trans: With a flow pack line for grapes and stone fruit, we're well-positioned to supply retailers