The food and beverage sector’s reliance on global markets for many raw materials and products leaves businesses exposed to a wide range of emerging geopolitical risks.
- Conflicts, such as the Russia-Ukraine crisis, can put production of basic commodities at risk and lead to sanctions, sudden price volatility, inflation and disruption to trade routes.
- Food tariffs and penalties are being weaponized as a way to punish states or achieve international policy objectives.
- State-sponsored cyber-attacks are on the rise, potentially affecting an industry increasingly dependent on new technologies.
- The rise of food nationalism is forcing countries to bring their supply chains home, creating disruption risks and pushing up costs.
- Businesses also face the perennial dangers of terrorism or kidnap that come with doing business in high-risk countries.
