Sugar producers affected by imports, including through smuggling

Sugar production is relatively small in Moldova, given the existence of only two major producers on the market. Nevertheless, producers say that in recent years they are losing ground on the domestic market, but also on the external market in terms of price competitiveness. They consider it necessary to reduce or stop the import of sugar, but also to amend the Law on the entrepreneurial patent. The statements were made during a meeting between representatives of sugar producers and those of the Ministry of Agriculture, Regional Development and Environment (MADRM), IPN reports.

Sudzuker Moldova Company representative says that the company entered 2019 with record-high sugar beet stocks. They were accumulated due to the dramatic decline in sugar sales on the domestic market and the lack of real export markets. According to him, currently Moldova has access to the European market and a "virtual" access to the CIS market. "Russia blocked us three years ago. Last year the price on the European market reached a record low level, and the producers were impacted ", he said.

The Sudzuker Moldova representative maintains that due to population exodus, the level of consumption of sugar or sugary products on the domestic market decreases. Also, the price of sugar fell below its production cost, already the second year in a row, because, he says, sugar is imported, including illegally.

He assumes that much of the sugar comes into the country through smuggling, being sold especially in local markets by patent holders. In this context, sugar producers called for a ban on the merchandising of foodstuffs by patent holders, as they "can sell any doubtful product without any certificates of origin."

The Moldovan Sugar Company representative says this year, the quality of sugar beet is expected to be better, compared to last year.

Georgeta Mincu, Minister of Agriculture, Regional Development and Environment, stated that about 85 thousand tonnes of sugar were produced annually. Over the last few years, sugar imports have been uneven. In all, 21 thousand tonnes are imported into Moldova, most of them from Ukraine, Romania, Poland, etc.

The Minister addressed a request to the Ministry of Economy and Infrastructure to facilitate rail transport for sugar products. She says it is necessary to develop the Sugar Producers’ Register which is also important for receiving subsidies. The minister also stated that steps will be taken to make amendments to the Law on entrepreneurship.

According to Iurie Mudrea, senior consultant at MADRM, sugar beet is grown in the country on 16 thousand hectares. Basically, all the activity is concentrated in the northern districts, where weather conditions are more favorable. This year producers expect a total harvest of up to 85 thousand tonnes and an average yield of about 40 tonnes per hectare.

 

 

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