Agrifood
Inflation affecting the entire production chain
Last update – November 2022
Sector rating

MEDIUM RISK FOR ENTERPRISES
Fragmentation
Internationalization
Capital Intensity
Profitability
Strengths & weaknesses

- 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
Sector overview
Subsectors
Contact
Maria Latorre
Allianz Trade
Allianz Trade