Sausage consumption may increase by 2%

Luchkina believes that the strategic trend for processors now is to adapt to new realities. According to her, common risks remain for the entire agro-industrial complex. Among them are the rise in prices for equipment, machinery, software, fertilizers, disruption of supply chains, etc. “The next package of sanctions will provide for even greater pressure, including blocking options for circumventing existing sanctions. Therefore, there is no need to relax, ”Luchkina emphasized. Another risk is a lack of staff. it is associated with a discrepancy between the requirements and expectations of employers and job seekers to each other. 

“Under such conditions, it is clear that the attention of business managers should be directed as much as possible to increasing adaptability to changing conditions and increasing the efficiency of all processes. Of course, your business model must be more sustainable than your competitors. And often one of the elements of such stability is consolidation and vertical integration,” Luchkina believes. There are several reasons for consolidation, she continues. Thus, difficulties with imports and changes in lending conditions are easier to solve for large players. In addition, their business is already diversified, making it more resilient and secure under changing conditions. The experience of Brazil and the United States , which have passed this stage, shows that the industry is consolidated in the hands of less than ten companies, and RUSSIA will also have to go through this.

When choosing an asset for purchase, investors should pay attention to the condition of fixed assets, veterinary and sanitary well-being, localization, integration of supply chains, sales, debt load and risks. In addition to typical ones, there are specific risks in the industry, Luchkina draws attention. Among them are the seizure of land, the denial of preferential loans and taxation. You also need to be prepared for changes in state regulation, and the general trend is that the requirements are becoming more and more stringent. 

Read together with it: