Business Risks H1/2025
Atria Group’s business, net sales and result can be affected by many uncertainties. Atria describes its business risks and risk management in detail in its Annual Report 2024, which is available at www.atria.com/en/investors/financial-information/annual-reports/.
During the review period, uncertainty continued due to both the continuation of the war in Ukraine and the escalation of global geopolitical tension in the Middle East. Combined with the unstable US tariff policy, they affected market behaviour and consumers’ purchasing decisions. A possible increase in tariffs on food imports from Europe to China or an import ban would have an impact on Atria's Finnish pork exports and the European pork market.
The national nutrition recommendations published in the autumn of 2024 have reduced the cold cuts market in Finland. During the January–May period, the Finnish cold cuts market in retail trade decreased by about 7 per cent in value. In the second quarter, the decline of the cold cuts market has eased. The long-term market impact is still being assessed.
European beef production has declined in recent years, while consumption has remained unchanged. This is creating an imbalance in the beef market.
During the review period, the animal disease risks in Finland and nearby areas remained moderate. African swine fever is again more prevalent in Estonia. It has also spread to one of Atria’s pig farms, but the economic or operational effects of the disease are insignificant. The foot-and-mouth disease situation in Europe has remained stable. Atria actively monitors the animal disease situation in Europe. Atria has protective measures in place in its own production plants and on its contract farms. There have been isolated cases of highly pathogenic avian influenza in wild birds in Finland.
According to preliminary estimates, the yield expectations for cereal crops are positive. The weather conditions of the late summer and the effects of the war in Ukraine are the most significant risks to the price and availability of grain.
The fight against cybercrime and information system disruptions requires continuous development and a proactive approach. Systematic monitoring is key, as it enables the timely detection of threats. For example, the continuous improvement of cybersecurity through system upgrades, employee training and the introduction of new technologies is also very important.