Uncertainty to Impact Global Food Supplies

Increased uncertainty will continue to pound investment opportunities in the Food & Agriculture value chain over the next couple of years, potentially depressing food supplies and dealing a blow to the sector

Factors influencing buffer capacity deterioration and the outlook of many players in the Food & Agriculture value chain include the commodity boom, the subsequent sudden decline in commodity prices, the boom in farm-input prices, increased price volatility and a wave of highly leveraged consolidation deals. These factors as well as a financially tightened credit system have left several Food & Agriculture companies exposed to higher risk profiles.