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Jim Clark

Jim Clark

Partner at Granite Creek Capital Partners, a Chicago-based private equity firm focused on agribusiness and lower middle-market investing

Jun 11, 2026

4:04
Pretty challenging to the bottom line of agribusinesses as well, I would imagine.
4:11
Yes, the short answer is margins are getting hit.
4:15
And as I said earlier, certain businesses are limited in their ability to pass on price increases.
4:24
Some can and some have.
4:27
But most companies are faced with, hey, what can we tighten the belt on? What can we rationalize or cost cut? If there is an ability to do a price increase, you know, how much, on what and when? Is it just in a fuel surcharge? Is it on the everyday price? Is it permanent? Is it temporary? And, again, obviously, you know, there is the knock-on effect that, you know, if you do that to manage your P&L on the cost side, is that going to – hurt the downstream demand.
5:04
If you have a higher price, are you going to suffer in volume? And a lot of agriculture are high fixed cost businesses and where asset utilization and volume really matter.
5:14
So you may recover something on a unit price, but you may lose it because you produce or sell less volume, which hurts you on your asset utilization.
5:58
Are you seeing that any sector out there is getting hit harder than another by these challenges?

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