|SUMMARY MANAGEMENT PRODUCTION LOCATION MARKET TECHNOLOGY FINANCE 2.PAGER Why SMB|
Staple foods’ worldwide production volume is approximately 2.5 billion tons. For comparison: In 1980, there were approximately 1.5 billion tons. The population of the earth is steadily growing and currently underserved regions are increasingly better supplied. In other words, demand is steadily increasing. Current forecasts predict that the world population of currently around 7 billion rises to about 7.8 billion in 2015 to about 9.5 billion in 2050. There is therefore no question that the market volume and production will increase forcibly.
Our large-scale agricultural production plant in the Ukraine is a high-quality operation. We want our plant to produce high-quality staple foods according to the guidelines of Swiss or European quality and professionalism under Swiss management. This will certainly guarantee us as a sustainable and high demand supply of customers. The same reasoning applies to all our business sectors.
Market trends are overall very positive. The entry barriers for the establishment of such operations are mainly in terms of capital which tends to be high in land, property and equipment. However, the increasing scarcity of land with good arable soil suggests to enter this market as quickly as possible and to secure the corresponding areas. Company growth is possible in principle; however, this depends heavily on the local availability of suitable land. 4.4. Competition
All farms that sell on the world market are considered indirect competitors. However, given our management approach and long experience in this sector, we are confident in delivering high quality products at competitive prices to be sold on worldwide commodity markets.