Moldova Should Fix Position of Trans-Oil as Dominant
OREANDA-NEWS. July 30, 2012. Moldova should fix position of Trans-Oil as a dominant and have permanent monitoring of its activities", - chairman of the Association of agricultural producers, Alexander Slusar. In his interview to InfoMarket he recalled that the group Trans-Oil in the last year acquired a group of five WJ Grain elevators and oil extraction plant Balti Floarea Soarelui, thereby effectively becoming a monopoly in oil production, although there it is nowhere officially recorded.
As for the market of sunflower seeds, according to Alexander Slusar, the farmers have a choice: sell to Trans-Oil refineries or companies that export. "As the price of sunflower seed should be high because of the drought, farmers will export sunflower: If Trans-Oil does not give a good price at its plants, farmers will sell seeds to exporters," - said the chairman of the Association of Moldova agricultural UniAgroProtect. He noted that most of the seeds usually remain in Moldova for processing at the two existing plants in the country: in Ciadir-Lunga and Balti, which are now owned by the group Trans-Oil. Speaking about the outlook for 2012 crops of sunflower seeds, Alexander Slusar suggested that it may be at the level of 12-13 quintals per hectare, but if the rain will be in August, it may rise to 15-16, while last year the yield of sunflower reached up to 18 quintals per hectare.
According to statistics, in 2009, 2010 and 2011, Moldova produced sunflower, respectively, at 284 tons, 382 tons and 425 tons As InfoMarket reported earlier, the company WJ Grain sold in September 2011 its five elevators and factory Floarea Soarelui to the group Trans-Oil, which in turn owns all six elevators and a factory in Ciadir-Lunga.
The amount of the transaction were not disclosed. Under competition law, the company occupying more than 35% of the market may be recognized as a company with a dominant position. According to the International Finance Corporation (IFC), Trans-Oil holds 87% market share in processing of sunflower seeds in Moldova.
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