Agrifood
Easing prices to continue but climate change could put crop yields at risk
Last update – September 2023
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 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
Sector overview
Subsectors
Contact
Maria Latorre
Allianz Trade
Allianz Trade