28 3 2017
Competition is high in all segments and price pressure offsets sales volume growth, meaning that the already low profit margins will remain under pressure.
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19 12 2018
Some larger players continue to push the supply chain on price and longer payment terms, adding cash flow challenges to mainly smaller food businesses.
Many food producers and processors struggle to pass on higher input prices, which is hampered by the high concentration and market power of retailers.
As the UK is a major Danish export market, a hard Brexit could trigger a significant decrease in Danish export of food and agricultural products.
Despite efforts of food exporters to diversify shipments away from Britain, a hard Brexit remains a major challenge, also for shipments to mainland Europe.
Growth is set to continue, but the strong export orientation makes many food businesses susceptible to trade disputes and price/currency fluctuations.
Many meat processors and producers suffer from higher procurement prices, while their ability to pass on those increases to retailers is limited.
Even the biggest food retailers are small compared to other major international players, and e-commerce is increasingly challenging traditional businesses.
The new Mexican government could launch policies in order to increase domestic production and put emphasis on domestic agricultural support programmes.
Higher input costs have increased the pressure on margins in recent years, with a recent draught in Australia having and additional negative impact.
The number of protracted payments in the sector is rather high as larger businesses use their leverage against suppliers by demanding long payment terms.