Is EkoNiva facing troubles?

The agricultural holding EkoNiva plans to cut more than 2.5 thousand jobs, and, at the same time, has already suspended the investment program and delays payments to its counterparties. Since the beginning of 2021, the company has received claims for a total amount of about 600 million rubles (approximately $7.8 million) against about 800 million rubles (approximately $10.4 million) for the whole of 2020. Among the requirements is the collection of debts for the supply of feed ingredients.

The main owner of EkoNiva Stefan Duerr reports that about 2.5 thousand people are leaving the holding, while totally there are 14 thousand employees.

According to his statement, the business will grow at a slower pace. Since EkoNiva no longer plans to build all new farms on its own, there is no need for as many employees as before. However, Stefan Duerr disagrees that the business faces troubles. He assures that “things are going well and financial plans are being exceeded.”

EkoNiva is the largest producer of raw milk in Russia. The company is also engaged in plant growing, meat and pedigree cattle breeding.

Source: Kommersant