As marketers and executives in the agriculture and food sectors, you know the recent Covid-19 pandemic has had serious effects on the industry and will continue to have serious effects for some time. But no matter the conditions, food needs to be grown, distributed, and sold to consumers. One of the real advantages of these industries is that consumer demand is highly inelastic.
That being said, major changes in your industry are taking place. This article will keep you up to date with a few of the changes the industry is now undergoing, as well as a few of the expected changes as a result of the pandemic. Supply chains are being disrupted and consumer behaviors are changing on a large scale. Kompass wants to help you keep up to date with these changes.
Later on we’ll help you learn a little more about what you can gain from choosing to partner with Kompass. Kompass helps B2Bs like yours improve their prospecting, hit sales targets, find new suppliers, and locate other businesses to partner with. Especially in the current situation, businesses looking to operate internationally need to find quality partners. Kompass can help with that.
Outlook for Agriculture in 2021
The Covid-19 crisis has hit the agriculture sector hard, with share prices dropping between 20 and 30 percent between January and April 2020. However, the crisis has also made the vital importance of the sector clear, pushing predictions toward a steep rebound once the global economy begins to recover. This is expected to result in a positive long-term growth trend for agriculture.
Up until the crisis began, agriculture had been facing a long-term decline ever since 2013. As of January 2021, prices for agricultural products were at 50 percent of their 2013 levels. One of the long-term effects of the pandemic is expected to be increased government subsidies of domestic agriculture, particularly in countries that are currently dependent on food imports.
In the short term, Covid-19 has led to major drops in share prices in all agriculture sectors, with most sectors being down by at least 20 percent. Fertilizers have been hit the hardest, with their share prices down 31 percent from pre-Covid levels. However, when economic recovery from the crisis begins it is expected to be strong, leading to positive long-term growth for the industry.
Predictions for the Food Industry in 2021
Food retailers largely benefited from the initial stages of the Covid-19 pandemic, at which time stay-at-home orders were taking effect and many consumers were panic-buying food stockpiles. Restaurants, however, have been hit hard because of the crisis, with traffic to restaurants dropping by as much as 90 percent in certain regions, including North America and the Middle East.
Online grocery shopping has grown significantly in the wake of the pandemic, and indications are that this trend will continue after the crisis subsides. In a business report from March, a survey indicated that one in three customers had made an online order for groceries through delivery or pickup in the last week. Of the group that made online grocery purchases, about 41 percent reported that this was their first time buying groceries online.
Supply chains have been severely disrupted due to travel restrictions, but these are expected to be restored once those restrictions are gone. The switch to online shopping and delivery is expected to be one of the pandemic’s long-term effects on the industry. This change may put strain on small and medium-sized retailers, which are less able to meet the demands of providing delivery to consumers than established chain stores.
How Kompass can Help Your Organization
Kompass can help you find new clients, suppliers, and other partners through specialized tools like Easybusiness and the Kompass database. There are more than 44 million companies across the globe listed on the database, making it a crucial tool for businesses that need partners on the international stage.
Whether your business is just starting out, has thousands of employees, or anywhere in between, Kompass Solutions gives you the tools you need to find the right partners for you. We can help you find clients, suppliers, consultants, or partners along any part of your value chain. Here’s a short overview of what you can get by partnering with Kompass:
Through Kompass, You will be able to:
Boost your global potential by insisting on tailor-made services:
- Choose the right markets thanks to Kompass Market Ranking report.
- Identify potential distributors in Top countries thanks to Kompass Worldwide Company database.
- Improve your online visibility to attract potential clients in the selected markets.
Optimize Time and Costs
- Save time by having over 44 million companies worldwide for prospecting.
- Actively build your prospect lists and passively attract leads—all in one place.
- Target business opportunities in the industries and countries you want the most.
Take a look at what Kompass has done for other Exporters:
“Kompass service is an excellent service to find new overseas buyers. After using Kompass service, the number of inquiries through our homepage has increased dramatically. It seems that Kompass Google Indexing and SEO are the reason why more buyers have visited our homepage compared to before. Recently, we are in the process of trading samples with new buyers who are interested in our company. For example, new buyers have contacted us from Turkey, where business has stopped for the last 5 years..”
—Gill Hyoung Lee, Export Director, Tae Sung Co.
“We have increased our export from 8% to 48% by using Kompass database.”
—Mehmet Ozcan, Board Member, Ziligen