Kerfoot Group in Moldovan oil adventure

IT’S a business venture with a philanthropic bent, one that, if successful, could bring hope to people in Europe’s poorest country.

Speciality oil company The Kerfoot Group has launched a project in Moldova which aims to take advantage of the country’s expertise in winemaking to both expand its overseas operations and help disadvantaged communities.

The business, based in Northallerton, North Yorkshire, is establishing partnerships with winemaking companies to enable it to extract grape seeds discarded in the wine manufacturing process.

Organic grape seeds are to be sent from Moldova to the company’s factory in Goole where they will be cold pressed for use in organic oils sold by major cosmetics companies such as The Body Shop.

Due to grape seed oils high linoleic acid value, the oil is highly moisturising and can be used in body butters, face and foot creams.

The Kerfoot Group, which was established in 1980 and is a leading provider of specialist oils to the food and cosmetics industries, has employed Moldovan resident Christina Baciu to head up its office in the country’s capital, Chisinau, where she will hunt out opportunities for the company to develop its strategy.

Speaking to TheBusinessDesk.com on a visit to Yorkshire, Ms Baciu said there was an opportunity to create more than 30 jobs in Moldova through the venture.

Ms Baciu said Moldova’s strength lay in its land which was free of pesticides, fertilisers and other chemicals.

“The economy depends on agriculture because it’s got no mineral deposits,” she said.

But the lack of potentially lucrative minerals has also left it poor with the growth of fruit and vegetables used in wine and tobacco the main thrust of an economy which is the poorest in Europe in terms of GDP per capita.

Moldova, which neighbours Romania and Ukraine, was formerly part of the Soviet Union but became independent in 1991. The country is run as a parliamentary democracy with a president as head of state and prime minister as head of its government.

Ms Baciu said high inflation and corruption had caused many residents to leave Moldova and move to other countries.

Tom Kerfoot, the son of David Kerfoot, founder of The Kerfoot Group, said the company had become interested in looking for opportunities in Moldova following his father’s charity work in the country. He said it also formed part of The Kerfoot Group’s commitment to “social entrprepreneurship”.

David Kerfoot, the firm’s managing director, met Ms Baciu through his work with Breadline, a charity that works to build sustainable communities in Moldova and advises people on how to set up and run businesses.

Tom said: “My dad spotted opportunities in Moldova, one being the people there; they’re enthusiastic, hard-working and educated people. He also saw that so much land in the country was unused.

“The reason we’re interested in Moldova is to give people like Christina opportunities. We could be giving 30 people jobs.”

Ms Baciu adds: “What we’re trying to do in Moldova is get in touch with wine businesses and Moldovan countries about extracting grape seed.”

Tom said The Kerfoot Group, which uses seeds from other countries, was planning to buy land in Moldova to grow its own crops from which seeds used in speciality oils could be extracted. But he said government regulation was making it difficult to move forward.

“Our dream is to work in a village and work with 60 hectares and invest it back into the community for buildings, facilities and religion in Moldova which is an important aspect.

“In five or six years time this project could be huge and be a big part of our business. It’s a chance to help a country that my father calls ‘Europe’s secret forgotten tragedy’.”