Moldova's largest oil producer suspends operations due to Ukrainian seed shortage.

The largest oil producer in Moldova, Floarea Soarelui, has suspended work due to a pressing shortage of Ukrainian sunflower seeds.

This was reported by ESP, Ukrinform saw.

"The Bălți-based plant, Floarea Soarelui, which produces sunflower oil, has stopped operations. The reason was the shortage of sunflower seed on the local market, as well as difficulties with their imports," the report says.

The administration of the Floarea Soarelui plant reported that the reason for the suspension of production was the situation on the local sunflower seed market, as well as on the global oil market.

According to the Floarea Soarelui, the company is unable to buy enough sunflower seeds.

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"We suspended work for 20 days in January 2024, now the plant in Bălți is stopped again, as well as the Danube Oil plant in Giurgiulesti. We cannot buy enough sunflower seeds on the Moldovan market. We tried in January 2024 to get the right to import seeds from Ukraine, but the specialized commission at the Ministry of Agriculture did not issue us a license," the CEO said.

The daily processing capacity is more than 1,000 tons. Accordingly, in order to continue functioning, large volumes are needed, which the company is unable to purchase in Moldova.

"According to our estimates, there are only about 100,000 tons of sunflower seeds left on the market. Some farmers are unwilling to sell now at the market price, hoping that prices will rise this summer. We cannot force them to sell," added the CEO.

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The Forţa Fermierilor Association, in turn, claims that there are enough sunflower seeds on the Moldovan market. Farmers accuse processors, especially Trans-Oil, which includes Floarea Soarelui, of being unwilling to offer realistic prices and trying to dictate their own terms.

As reported, on March 20, representatives of the European Parliament and the Council of the EU reached a provisional agreement on the extension of trade liberalization measures for Ukraine in the conditions of the Russian war for another year, until June 5, 2025, with the simultaneous introduction of safeguards for the import of certain types of food from Ukraine.