Ref: IMD-7-1988

Case study

Reference: IMD-7-1988

Order this case study

From pitchfork to fork: Vertical integration at Otrada Group (Russia)

As a French engineer, nothing predestined Patrick Hoffmann to ever launch and lead a small pig empire in Russia. What had started out as an ambitious high-technology pig multiplication facility in the region of Lipetsk had evolved over the period 2005-2018 into one of the country’s premier multipliers, at the leading edge of genetics and pig raising techniques. The company expanded to cover multiple stages in the pig industry, from manufacturing concrete floor slats for the pig farms to farming 12,000 ha of land, producing high quality animal feeds, slaughtering animals, and further processing meat all the way to running eight French-style butcheries.

The company now truly operated “from pitchfork to fork”. But the journey was never over. The vertical integration had happened more by default than by strategic choice, and it was fair now to question the whole montage. Patrick had just been presented with the chance to integrate backward into genetic selection as their Danish supplier restructured. Retail and meat processing had been unqualified disappointments; should they continue to be involved? On the positive side, Patrick had just fielded a call from the governor of the region, informing him of another 12,000 ha of farm land for leasing. Unfavorable price evolutions in the industry also suggested some less efficient competitors would soon face financial distress, creating interesting acquisition opportunities.

Learning Objective

  • Doing business in Russia
  • Agro-industries
  • Vertical integration strategies
  • Building teams
  • Managing the value chain
  • Technology as barrier to entry
  • Innovation
  • Genetics
  • Growth management
  • Entrepreneurship
  • Entrepreneurial leadership
  • Managing stakeholders
  • Capital budgeting
  • Business models
  • Project management
  • Growth financing
KeywordsBusiness Model, Capital Budgeting, Entrepreneurship, Genetics, Growth Financing, Growth Management, Innovation, Leadership, Operation, Project Management, Strategy, Technology, Value Chain, Vertical Integration
SettingsOtrada Group
TypeField Research
Order this case study

Reference: IMD-7-1988

IMD case studies are distributed through case clearing houses. In order to browse the collection and purchase copies please visit the links below.

The Case Centre, UK Office

Cranfield University

Wharley End Beds MK43 0JR, UK
Tel +44 (0)1234 750903
Fax +44 (0)1234 751125
Email [email protected]

The Case Centre, US office

Babson College

Babson Park, Wellesley MA 02457, USA
Tel +1 781 239 5884
Fax +1 781 239 5885
Email [email protected]

Harvard Business School Publishing

60 Harvard Way, Boston MA 02163, USA
Tel (800) 545-7685 Tel (617)-783-7600
Fax (617) 783-7666
Email [email protected]

Asia Pacific Case Center

NUCB Business School

1-3-1 Nishiki Naka
Nagoya Aichi, Japan 460-0003
Tel +81 52 20 38 111
Email [email protected]

Copyright information

IMD retains all proprietary interests in its case studies and notes. Without prior written permission, IMD cases and notes may not be reproduced, used, translated, included in books or other publications, distributed in any form or by any means, stored in a database or in other retrieval systems. For additional copyright information related to case studies, please contact Case Services.


Information Center for additional information on IMD publications

Case study

Reference: IMD-7-1988

Order this case study
Looking for something specific?

Keep reading

Back to top