Survey respondents in China expect trade credit risk to increase over the coming months. Find out more about their business challenges going forward.
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A hard Brexit and an escalation of EU-US trade disputes are downside risks for export-dependent food companies in the olives/olive oil and meat segments.
In the food retail sector smaller and independent businesses are struggling to remain profitable due to fierce competition and high price pressure.
Food sales growth continues, and the economic impact of the USMCA agreement on consumers and food supply chains is expected to be relatively small.
Despite efforts of food exporters to diversify shipments away from Britain a hard Brexit remains a major threat, potentially leading to more insolvencies.
In the Belgian food retail segment a comprehensive price war cannot be ruled out for the future, potentially forcing many businesses out of the market.
The ongoing drought has put additional pressure on margins industrywide due to higher input costs, and many businesses are struggling to break-even.
Larger players continue to push the supply chain on price and longer payment terms, adding cash flow challenges to mainly smaller food businesses.
While businesses´ profits are still stable and financials mainly solid, environmental issues pose a potential major challenge for agriculture and food.
The ongoing concentration process in the domestic market will increasingly put small retailers with a poor capacity to generate cash flow under pressure.
Insolvencies are expected to increase by about 1%-2% in 2020, mainly in the troubled meat segment and the beverages and fruit & vegetables subsectors.