AGRIBUSINESS MARKET MONITOR: WINTER 2021

HomeAGRIBUSINESS MARKET MONITOR: WINTER 2021

    AGRIBUSINESS MARKET INSIGHTS

    KEY INSIGHTS

    • Agricultural Producers performed well in 2020, finishing the year above 2019 levels
    • Citrus prices returned to 2018 levels, as Florida citrus groves recovered from hurricane damage
    • The Agribusiness sector continues to look towards automation and technology for growth

     

    Stock prices for agricultural producers rose significantly during the second half of 2020 allowing the sector to close out the year 34% higher than its December 2019 levels. Due to the essential nature of the sector, companies performed well despite operational and end-market challenges created by COVID .

    With an expected rebound in the export market, industry trends towards organic and better-for-you food products and continued consolidation within certain industry sectors, the M&A outlook for 2021 for the sector is positive with an expected return to prior years activity levels.

    Labor shortages was the most frequently cited issue within the Agribusiness sector in 2020. Producers and packers who made investments in technology and PPE early in the pandemic separated themselves from competitors during the later-half of 2020. The success of large, automated producers during the crisis will likely accelerate the pace of consolidation in the industry.