High farming prices and labor shortages hurt food-makers’ profitability

Last update – January 2022
Business environment risk
Political risk
Commercial risk
  • Farming upstream segment enjoys high selling prices
  • Strategic sector usually supported by state aid in any case of social uprising risk
  • Agrifood demand fueled by Asia’s new middle class and larger disposable incomes
  • Resilience to periods of supply-chain disruptions as the global vaccination campaign expands
  • Rising demand in the market niche of organic food and responsible farming principles
  • Fierce price competition among food-makers in mass retailing
  • Environmental concerns related to the heavy use of pesticides and water, on top of the necessity to reduce upstream greenhouse gas emissions.
  • Labor shortages in the beverage segment, especially across Western Europe.
  • Food processing companies’ limited pricing power against wholesalers and retailers.
  • Food safety related to changing food supply/demand dynamics locally and globally.

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Country   Role Sector risk
China #1 market by revenue

Medium risk
United States
#2 market by revenue

Sensitive risk
Germany #3 market by revenue

Medium risk
Marc Livinec
Allianz Trade