Compensating for the Russian embargo with new markets and products

ALPENRIND is taking a forward-looking strategy to compensate for the loss of business in Russia: new markets are opening up, domestic demand is increasing and cooperation is strengthening along the value chain with trade and farmers.

Minister Rupprechter bei ALPENRIND Salzburg
(from left): Roland Ackermann, ALPENRIND CEO, Gerald Hellweger, Commercial Director OSI Europe and ALPENRIND Advisory Board, Erik Schöttl, Managing Director OSI Foodworks Europe, Andrä Rupprechter, Federal Minister of Agriculture, Forestry, Environment and Water Management and Franz Essl, President of LWKS, the Chamber of Agriculture Salzburg, Member of Parliament.

Russian embargo costs 800,000 Euros in revenue

The Russian embargo will result in a revenue shortfall for ALPENRIND of around 800,000 Euros, Erik Schöttl, Managing Director OSI Foodworks Europe, Gerald Hellweger Commercial Director OSI Europe and Roland Ackermann, CEO of ALPENRIND GmbH figured out for the agricultural policymakers. This loss of business can or should be compensated for with the opening up of new markets and an increase in domestic demand.

In the domestic retail food trade, 100% of products already being used are Austrian, explained Hellweger. An increase in demand within Austria could only be triggered by an increase in the domestic share of eating outside the home. Namely, the restaurant industry’s share of domestic meat is only 50%. And ALPENRIND has developed a concept to increase this share. The relevant considerations were presented to Mr. Rupprechter, Minister of Agriculture.

Adding value through new products

ALPENRIND is adding value through intelligent concepts for processing the existing raw meat. Recently, a production system for Dry Aged Beef was established. Unusual paths were taken in the search for ways to process the raw meat. For example, for some time now there have been shoes made from organic leather, whose origin can be traced back to the farmer. Other projects are in preparation.

For a number of years, ALPENRIND has also worked on new forms of cooperation in the field of meat with various retail chains in order to ensure the quality of the raw ingredients over the long term. The aim is to develop a business model from the farmer to the processor to the retail market in which there is a win-win-win situation. Together with the retail market, ALPENRIND wants to guarantee minimum prices for farmers. There are already specifically-related projects with McDonalds and Edeka. This creates security among farmers and ensures reliability of supply for processors and the retail industry.