The main business risk of the Company relates to the availability of raw materials and fluctuations in their prices, as most of the main raw materials used by the Company are commodity goods, such as corn and soybean. The availability and prices of such raw materials depend on weather, harvests and levels of supply or demand. The Company imports to fulfill part of the need for certain raw materials, mainly if such raw materials are not available in the local market. To overcome this issue, the Company continues to conduct research and development to find raw materials that can substitute materials that currently have to be imported.

 
Farm industry diseases such as Avian Influenza also constitute a business risk that must be faced by the Company, as such diseases can cause large-scale death of livestock within a short period of time. This may reduce demand for the Company’s products, which will eventually reduce the Company’s income. To overcome this issue, the Company constantly offers consultation and guidance to all farmers on the importance of bio-security and vaccination to prevent diseases such as avian flu.

The main business risk of the Company relates to the availability of raw materials and fluctuations in their prices, as most of the main raw materials used by the Company are commodity goods, such as corn and soybean. The availability and prices of such raw materials depend on weather, harvests and levels of supply or demand. The Company imports to fulfill part of the need for certain raw materials, mainly if such raw materials are not available in the local market. To overcome this issue, the Company continues to conduct research and development to find raw materials that can substitute materials that currently have to be imported.

 
Farm industry diseases such as Avian Influenza also constitute a business risk that must be faced by the Company, as such diseases can cause large-scale death of livestock within a short period of time. This may reduce demand for the Company’s products, which will eventually reduce the Company’s income. To overcome this issue, the Company constantly offers consultation and guidance to all farmers on the importance of bio-security and vaccination to prevent diseases such as avian flu.