The Bootstrapper's Guide to start an Agrobusiness Company in Russia

All around Russia, there is a revived and new found interest by investors to invest in Agrobusiness and Food Production. These interests have seen existing and potential investors taking shots at different Agrobusiness ventures with promising returns on investment and with a vast market potential. Investing in Agrobusiness remains an excellent strategic move. After all, whether the overall economy's in recession or booming, people still have to eat. Because of this, many investors regard Agrobusiness and farming investments as being recession-proof. Further, as the world's population increases, agriculture will play an increasingly important role in sustaining global societies.

 Krasnodar Region top view

Krasnodar Region top view

However, from experience as CEO of Astorts Group and records, while there are a large market and income potentials from various agrobusiness ventures, a lot of rookies and new entrants have had their fingers burnt and incurred huge losses at first trial mostly due to lack of appropriate knowledge, local contacts and ignorance on what is obtainable.

What then should current and prospective Investors wishing to invest in agro-business worry most about? Capital or right Knowledge, Local Contacts and Information?

While adequate funding and availability of capital are key for not just Agrobusiness but other investments, it is essential for new Agrobusiness investors in Russia to know that right information, local contacts and knowledge most times is about a critical ingredient and factor for profitable investment in Agrobusiness. For instance, no matter the amount of capital invested, lacking the prerequisite information would almost certainly result in a near total loss of capital. Investors are finding Agrobusiness investments in Russia a great option as compared to stock and shares as it provides opportunities to earn through different agro product production.

Lastly, with global food demand booming, Russia is ideally placed to become a long-term premium partner in agro-business. To help its Agrobusiness and food sector scale-up and make the most of growth opportunities, Russia is keen to draw investment in innovation, agriculture production; incorporating food products and advanced food processing. From production, processing, and distribution of agro products- Russia holds within its borders a virtual abundance of investment opportunities for global players.

 Caucasus Mountains

Caucasus Mountains

Local Partner is the Key to succeed.

Based on my experience is essential for new Agrobusiness investors in Russia to have a local partner for a solid venture, where the foreign investor brings in the proper know-out and the local partner offers a great opportunity to enter the market. The first step is to find the right team that can help the foreign investor to get into Russian Market where it is very easy to find a local partner that can bring in not only market access, but as well money in cash or equity.

Setting up a company in Russia is not any more so difficult for foreigns with help of the proper consultant; the foreign investor can bring into huge market his know-out and huge experience with great benefits for him.

“We are a country that can and must feed itself,” prime minister Dmitry Medvedev said in 2014. In 2015, President Vladimir Putin went further still, claiming that Russia could become the world’s largest supplier of “healthy, ecologically clean, high-quality food”. In his annual policy address in December 2015, Putin called for a push to make the country completely self-sufficient in food by 2020. "We were never big exporters because of food security policies adopted here years ago but that's changed. It's been a significant change. We are producing more beef, more pork, more poultry and for the first time in our history we are going to export sugar and have a surplus. The growth potential is infinite," famous business man Vadim Moshkovich says.

As you may see, opportunities are not missing.

The Country

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Russia, also officially known as the Russian Federation is a sovereign country in Eurasia. At 17,125,200 square kilometres (6,612,100 sq mi), Russia is the largest country in the world by surface area, covering more than one-eighth of the Earth's inhabited land area, and the ninth most populous, with over 144 million people at the end of March 2016.The European western part of the country is much more populated and urbanised than the eastern; about 77% of the population live in European Russia. Russia's capital Moscow is one of the largest cities in the world; other major urban centers include Saint Petersburg, Novosibirsk, Yekaterinburg, Chelyabin,Nizhny Novgorod, Ufa, and Kazan.

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Do you need my team help?

Please write me an email with your specific case or book a Skype Call, my team and I will be more than happy to help you to choose the best solution for your AgroBusiness Company in Russia.