Easing prices to continue but climate change could put crop yields at risk

Last update – September 2023
Business environment risk
Political risk
Commercial risk
  • High pricing power for farmers and companies in the upstream segment
  • Growth potential: Strategic sector considering the vital role of feeding an exponentially growing global population
  • Steady consumption and immune to inflation as food will always be in demand
  • Vulnerable to climate change: More frequent and severe floods and droughts affect crops and livestock
  • Food-processing and packaged-food companies continue to struggle with high energy, transportation and input costs.
  • Labor shortages, especially in the upstream segment and in Western Europe
  • Global inflation has exacerbated price competition
Maria Latorre
Allianz Trade