Political instability, both domestically and internationally, is a major risk for importers. Political unrest, sanctions, and sudden changes in government laws and regulations can significantly negatively impact international trade and the import of goods, turning a lucrative imported product into a risky, dangerous one.
On the other hand, delays in the arrival of the product at the destination, damage to the product, and increased transportation costs are among the transportation risks that importers will face during the import process.
Transportation plans may also be disrupted due to adverse weather conditions, technical problems, or congestion at ports and customs, leading to delays in the arrival of goods.
When we are faced with credit sales in the market, credit sales of products in high tonnages to the final consumer are associated with a high risk range for the importer. In the current situation, only a limited number can operate with a bank guarantee that increases the cost of the Livetock feed inputs price. While distribution agents transfer the product to the final consumer free of charge and with a check, in a way that increases their own risk and reduces the importer’s risk to zero, and the importer is sure that the distribution agents have the ability to pay the importer’s money if the consumer’s money is not collected.
If, for any reason, the end consumer is unable to sell their final product, such as chicken, eggs, milk, etc., or if the livestock becomes ill and suffers losses, the distributor’s financial risk for the costs paid for marketing and advertising increases significantly.
