FAS IS GOING TO ASSESS THE STATE OF COMPETITION IN MARKET OF SUNFLOWER SEEDS

Experts of the FAS Commission on Market Analysis discussed new draft Guidelines

The goal is to evaluate the state of competition in the relevant market, the level of dependence of the domestic market on suppliers of foreign selection material and the barriers preventing development of Russian selection in this segment.

Deputy Head of FAS Andrey Tsyganov explained:

“According to expert estimates, the dependence level of the domestic sunflower seeds markets on supplies of foreign selection material reaches around 80 %. These are predominantly hybrids. Acquiring such sowing material consumers gain certain guarantee of high yield with the desired qualities. At the same time, hybrid seeds cannot be reproduced and must be acquired annually, therefore, spending funds to purchase them annually”.

To evaluate the state of competition on the markets of sunflower seeds for sowing, the competition authority plans to assess the market entry barriers.

“Market entry barriers may include absence of the required quantity and diversity of selection material, lack of modern technologies of accelerated selection, complexity of registering selection achievements, imperfect intellectual rights protection system, conduct of market players, and some others. We expect to clarify all those issues through market analysis”, concluded Andrey Tsyganov.