Sugar producers announce a price diminishing because of reduced consume of wine enterprises. IPN interview

[Info-Prim Neo Interview with the chairman of Sugar Producers Union of the Republic of Moldova, Alexander Koss, regarding the increase in price of sugar in the last half of 2006] [- Which are the causes that determined in the last half of the year the increase in price of sugar from MDL 8.5 to 13.50?] The March’s increase in price by only MDL 2 of sugar was generated by the necessity of halting the inflow of Moldovan sugar to Ukraine and Romania, in order to ensure the demand on the interior market. The sugar producers must accumulate sufficient financial potential for crediting agricultural producers and the purchase of energetic resource in the light of the spontaneous increase of prices. The wholesale price for sugar has a stable decreasing tendency, especially because of the fact that wine enterprises reduced consumption. [- If the situation is already stable, how long will the situation last and what other factors could determine possible fluctuations in prices?] Although the spontaneous increase in price of sugar took place in light of the price increases for energetic resources, in conditions when the sugar industry uses the greatest share of the energetic resources of the alimentary industry area, the prices will be influenced by the market. It is improbable that in the near future we will witness spontaneous prince increases or decreases of the price for sugar. The balance between sugar production on one hand and consume and export of sugar on the other hand was achieved. It is imported to maintain this balance, because in the case of a sugar deficit the increase in price of sugar will be possible to avoid, and in the case of overproduction – the prices will spontaneously diminish, which will negatively affect the sugar industry and the whole agriculture of the Republic of Moldova. [- How many sugar producers activate in Moldova and who are the leaders, according to the production volumes?] At present two big sugar producing companies are working in Moldova:” “Südzucker-Moldova” and “Marr Sugar Moldova”, who have about the same share on the market. [- What was the amount of sugar exported in the first half of this year? Which are the factors that determined the increases and eventually the decreases of sugar exports? What are the prices for Moldovan sugar on the markets?] In the first half of 2006, about 9 thousand tones of sugar were exported by the both companies to Romania and about 1.2 thousand tones – by “Marr Sugar Moldova” to the Russian Federation. [- Which are the perspectives of the area?] Producers are preparing to activate even in the situation when prices for energetic resources will spontaneously increase. Both companies invest big money in reconstructing the sugar plants in order to reduce power consume. The fact that for the first time in the last 20 years reduction of the areas planted with sugar beet was reduced and the productivity of sugar beet suddenly increased. Also a positive development is also attracting foreign investments in the agricultural area, but it is needed to continue the structural system changes in the agro-industrial complex. The most important is not to admit worsening the existence frame-conditions of the sugar beet complex of the Republic of Moldova and to permit its continuous development. [- Which is roughly speaking the situation of the sugar producing area of Moldova?] The condition of the field is rather complicated. The sugar market in al countries producing sugar beet is protected by instituting high taxes for importers. Intergovernmental trade is possible in Moldova only through free trade preferential regime, but any preferential economic relationships are settled more due to politics than economy. We will be optimist and hope Moldova will improve the relationships with Russia and will keep the friendly relationships with Romania, the sugar beet market of which is one of the most important markets for the Republic of Moldova.