In addition to the immense tragic human cost of the COVID-19 pandemic the economic costs continue to mount. The IMF estimates that global GDP will contract by – 3% in 2020, much worse than the 2008/2009 financial crisis. Only last January 2020 global GDP was forecast to expand by + 3.3% in 2020.
The agribusiness and food industry has long been hailed for its defensive characteristics. The thesis runs that irrespective of economic circumstances people must eat and drink, affording the sector a degree of protection during economic showdowns. In normal circumstances businesses in the food sector should have less to fear from economic turmoil. But these are not normal circumstances.
To understand how companies, anticipate the COVID-19 pandemic will play out and their expectations of the impacts on their businesses’ future prospects, our analysts surveyed recent trading updates and quarterly reports of some bellwether agri-food companies.
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In the wake of economic downturns driven by the pandemic, food and agribusinesses must find new and innovative ways to remain profitable and economically viable in the short- to mid-term.
At Farrelly Mitchell, our agrifood specialists offer valuable insights into shifting market forces to forecast future markets and determine financial feasibility. We provide key services in strategy & execution, business planning, and operations improvement, aimed at positioning our clients’ businesses optimally in challenging times. To leverage our insights and establish resiliency, contact Farrelly Mitchell today.
