Denis Shkutko on the Challenges (and Rewards) of Running an Agribusiness

As the owner of a top fruit processor and distributor, Denis Shkutko knows the challenges of running an agribusiness in today’s ever-changing global economy. But he also has experienced many rewards, which include the ability to support the livelihood of a wide range of workers and knowing how critical the entire agricultural business model is to global food security.

Like the energy and drinking water/wastewater sectors, agribusiness is pivotal to sustaining life and determining how nations, societies, and micro-economies can prosper. As one of the oldest industries in existence today, agribusiness is facing some significant challenges.

3 Major Challenges in Agribusiness

1. Global price fluctuations
   Agribusiness is a global market sector, and everything depends on preserving food quality and eliminating food waste. Therefore, speed and efficiency in transportation are critical to maintaining a competitive edge. But, when transportation channels falter, weather or artificial disasters happen, and even fluctuations in other markets such as fuel or fertilizer occur, the result can be higher costs for growers and distributors and higher consumer prices.

   

   Interrelated global factors, such as geopolitical conflict and increased competition, add to the economic challenges that leave agribusiness owners vulnerable to price fluctuations each year.

2. Changing consumer demand
   Keeping up with changing consumer trends and preferences is also challenging for agribusiness owners like Denis Shkutko. From one growing season to the next, consumer demand and consumption can change dramatically, from the willingness to pay more for heirloom tomatoes to the unwillingness to tolerate a higher price for a dozen eggs.

   As a hedge against variations in consumer preferences from season to season, agribusinesses like Susen Agriculture will diversify and produce a broader range of food products within one or more categories. For instance,  as a tropical fruits agribusiness, Denis Shkutko processes and distributes mangos, dragonfruit, watermelon, and other tropical fruits to offset seasonal or consumer fluctuations.

3. Global environmental factors
   The most urgent challenge facing the agribusiness industry today and in the future is likely the threat of global climate change and other environmental issues, which include air pollution, poor soil quality, drought conditions, and a loss of biodiversity, which is the decline of species or ecosystems typically found on earth.

   

   However, the challenge of adopting sustainable farming practices, which may include methods that improve soil quality, reduce soil erosion, and limit water waste, can be costly to an industry constantly looking to reduce overhead.

Today, agribusinesses must look to adopt emerging technologies that can help offset the many challenges they face, from water scarcity to higher costs across the entire agricultural spectrum. Despite the hard work and challenges that agribusiness faces today, the rewards continue to be the pride and deep satisfaction of helping to sustain communities worldwide.

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