RA Vegetable Oil Market Competitive Situation Assessment

Abstract

Vegetable oil is an important product from nutritional, social, and strategic points of view. Currently, only imported vegetable oil is consumed in the RA, and sunflower oil is the dominant component. Meanwhile, a key part of imports (more than 95%) is supplied from one country, and among the importers exist companies with a large share of the market, which makes the analysis of the competitive situation very important. In the paper, the authors analyze the market structure and the level of competition, characterizing the market by features of an oligopolistic market. The authors conclude that the development and implementation of appropriate strategies for the promotion of domestic production, as well as for the diversification of the import geography are important – given also turbulence in international markets and the sudden increase in the prices in recent years.