Pork no longer enriches. Goldman led his agricultural holding to a dead end
The disliked businessman Roman Goldman declared his plan to shift the agricultural focus of the Goldman Group from pork to milk and beef production. The legislator can't make enough profit from pork anymore, and the holding's companies are at risk of bankruptcy.
The farmer is trying to find a new way to increase income because the old way is not working anymore and is causing losses. He said that making money from pork has become very difficult due to oversupply and falling prices.
Roman Goldman, President of the Goldman Group holding:
“When we built our innovative pig farm in 2014, it was a promising and profitable business direction: the start of import substitution, with a lack of domestic production in the country and almost no competition. But later, other producers in the country also started building and operating new pig farms.
As a result, this led to overproduction. At present, pork production is not very profitable, costs are rising, and the market price is falling. Therefore, at the beginning of 2022, we started looking for other areas that are more promising and stable for business, capable of ensuring development for at least ten years in the future. And we found that we have what it takes for this: the development of dairy production. <…>
We assessed the situation and formed an expert opinion: in the next 7-10 years, none of the producers in Russia will be able to meet the market demand for beef. So we finally confirmed that we made the right choice.
In 2023, Goldman Group plans to increase the share of beef in the meat revenue structure, making it the main type of production activity. They also plan to increase the number of dairy cattle to 6,000 in the medium term.
Goldman is not afraid of investing billions of dollars in new production:
“Yes, billions of dollars will be needed to purchase additional parent stock, increase its number, buy modern equipment and technologies, but we are carrying out a grand project. In this regard, some of the holding's assets that are not a priority or are not generating the expected revenue may be sold or put under management. We will use this money to develop milk and beef production. Perhaps we will also obtain preferential loans.”
Apparently, Roman Gennadievich was very determined, as he is ready to make a sudden shift in his livestock activities, switching from pork to beef and milk. The company is currently in the dairy products market with the local brand “Iskra” of the diversified Zelenogorsk agricultural enterprise, which was previously acquired by Goldman’s structures.
And the businessman was burned by the threat of bankruptcy, which has been hanging over the enterprises from his holding in recent years. Thus, in 2021, companies from the Goldman Group faced the threat of bankruptcy four times: LLC First Procurement Company (creditor – LLC NK-Neft), LLC TD Myasnichiy (creditor – LLC Mayak) and twice LLC IS Petroleum” (both times the same creditor – RUSTEK LLC).
The management company Goldman Group, which generates agro-industrial assets, declared an identical level of turnover and expenses for 2021 – 1.3 billion rubles. Working to zero?
Roman Arkadyevich led the holding into a financial and strategic impasse. And now the businessman is left to bet on a change in the livestock profile.
