Moldova’s largest oil producer suspends operations due to buy Ukrainian sunseed

Moldova’s largest oil producer, Floarea Soarelui, has suspended operations due to a lack of sunflower seeds. This was stated by the company’s director Stella Ostrovetski, INFOTAG reports.

According to her, Floarea Soarelui cannot buy enough sunflower seeds on the local market and cannot import them, as the import licensing mechanism introduced in October 2023 is practically inoperative.

“In January 2024, we tried to get the right to import seeds from Ukraine, but the specialized commission of the Ministry of Agriculture did not issue us a license,” Ostrowiecki said.

She noted that the company can process more than a thousand tons of sunflower seeds per day, so it needs large volumes to continue operating, which it cannot buy. For this reason, production was suspended in January, and now the plant in Bielce and Danube Oil in Giurgiulesti have been shut down again.

“According to our estimates, there are only about 100 thousand tons of sunflower seeds left on the market. Some farmers do not want to sell at the market price now, but want to keep the seeds, hoping that prices will rise in the summer,” Ostrowiecki added.

The Farmers’ Power Association claims that there is sunseed on the market, but that the Trans-Oil group, which includes Floarea Soarelui, is a monopolist on the market and tries to dictate its terms and prices. Mold-Street writes that Floarea Soarelui buys sunflower seeds at a price of less than 7 thousand lei per ton (14.2 thousand UAH), while farmers reach a price of 8-10 thousand lei per ton (16.2-20.3 thousand UAH).

In turn, the oil producer claims that it offers the price at which sunflower is sold in the region. According to the producer, the increase in raw material prices will lead to an increase in the price of oil and make its products uncompetitive on the foreign market.

Tags: Ukraine, sunseed, Moldova, restrictions