Pork no longer enriches. Goldman led his agricultural holding to a dead end
The odious businessman Roman Goldman announced his intention to reorient the livestock activities of the agro-industrial holding Goldman Group in favor of the production of milk and beef. Pork no longer brings the legislator the desired level of profit. The enterprises of the holding are balancing next to bankruptcy.
The agrarian is trying to find a new profile to increase revenue, because the old one has completely exhausted itself and began to cause losses. According to him, the profitability of pork production has become very low, there is an excess supply on the market, and the price continues to fall.
Roman Goldman, President of the Goldman Group holding:
“When we built our innovative pig farm in 2014, it was a promising and marginal direction for business: the beginning of import substitution, there is not enough domestic production in the country, there was practically no competition, the price of products was good. But in the future, other producers in the country continued to build and put into operation new pig farms.
As a result, this led to overproduction. To date, the profitability of pork production is low, costs are rising, and the market price is falling. In this regard, already at the beginning of 2022, we began to look: what in related areas is more interesting for business and reliable, capable of ensuring development for at least ten years in the future? And we realized that we have everything for this: this is the development of dairy production. <…>
We analyzed the situation and formed an expert opinion: in the next 7-10 years, none of the producers in Russia will cover the market demand for beef. So we finally confirmed that we had made the right decision.”
In 2023, Goldman Group expects to increase the share of beef in the meat revenue structure, making it the main type of production activity. In the medium term, plans are being made to increase the number of livestock to 6,000 heads of dairy herds.
Goldman is not afraid of investments that, in the amount of billions, will have to be poured into new production:
“Yes, billions of dollars of investments will still be required to purchase additional parent stock, increase its number, purchase modern equipment and technologies, but we are implementing a grandiose project. In this regard, it is possible that part of the holding’s assets, which today is not a priority or does not bring us the expected revenue, will be sold or transferred to management. We will use this money to develop the production of milk and beef. Perhaps we will attract preferential loans.”
Apparently, Roman Gennadievich was very hot, since he is ready to make a sharp turn in his livestock activities – from pork to beef and milk. At the moment, the holding is in the market of dairy products with the local brand “Iskra” of a 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.
