An unprecedented combination of factors affecting the production and movement of foods around the world is having a major impact on meat and poultry markets, and retailers and their supply partners won’t likely see that changing anytime soon.
Uncertainty ahead: market forecast from Rabobank
- Limited availability of many supplies, ingredients and restaurant equipment due to the global supply-chain crisis;
- Increasing food and energy prices, including fertilizer, wheat, gasoline and sunflower oil;
- Inflation that is outpacing consumers’ earnings is expected to see a shift away from discretionary spending as paying for utility bills, food and fuel take priority;
- Financial market volatility could stunt the future growth and investment in foodservice companies; and
- The looming threat of a global recession. “As in other recessions, we would expect consumers to reduce the frequency of their visits to restaurants/bars, and look to trade down more aggressively,” according to Rabobank.