Inflation affecting the entire production chain

Last update – November 2022
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 an essential good
  • 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 limited pricing power, as well as the surge in energy and transportation costs
  • Persistent labor shortages (throughout the entire production chain), especially across Western Europe
Maria Latorre
Allianz Trade