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CANNING ENTERPRISES ASK GOVERNMENT FOR HELP

05 august, 2014
CANNING ENTERPRISES ASK GOVERNMENT FOR HELP The leading canning companies have proposed to the Government a set of measures to be urgently taken, which will help stabilize situation in the branch.

 

On the Tuesday press conference at Infotag, Ion Sandic, Chairman of the Association of Producers of Canned Products Speranta-Con, jointly with directors of the Moldova’s leading canning enterprises have presented real situation in the branch.

 

“Due to Russian embargo, Moldovan processing companies have lost a sales market with a capacity of almost 200 million lei per year”, said Sandic, informing that, by August 1, companies - members of the Association Speranta-Con have produced around 28 thousand tons of canned products worth 287 million lei.

 

He also mentioned that the majority of the canned products, designed for Russian market, are now stored in warehouses.

 

In such a critical situation, the directors of plants are proposing Moldova to enhance trade relations with Belarus and Kazakhstan, including at the level of control bodies and sanitary services.

 

“To support canning industry, credits should be allocated to processing enterprises from the National Bank of Moldova (NBM) resources with preferential interest rate and 5-year term of repayment”.

 

The Association suggests recognizing the embargo on Moldovan fruit and vegetables as a “force majeure situation” with issuing a corresponding certificate from the Chamber of Commerce and Industry of Moldova (CCI). However, they do not believe that this demand will be fulfilled.

 

Answering the question about possibility of exporting canned products to the EU, Director of the Criuleni canning plant Ilia Vaindrug said that it is impossible to sell in Europe, explaining that Moldovan products are uncompetitive on the EU market due to their initially high price.

 

According to Vaindrug, Moldova has given its market in Russia to other producers of fruit and vegetables.

 

“The Republic of Moldova should have been smarter, more artful and diplomatic. Our money are in the Customs Union”, said the manager.

 

Directors of canning plants believe that the situation may be improved by the Government, which should subsidize producers and processors of raw materials – vegetables and fruit, to take the harvest, grown by them, for processing.

 

Infotag’s dossier: Immediately after the conference, all its participants have been invited by Vasile Bumacov, Minister of Agriculture and Food Industry of Moldova, to a meeting, where, according to unofficial information, participated Prime Minister Iurie Leanca.

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