FNLI: High cost increases started in second half of 2021

In a year in where the war between Russia and Ukraine has major consequences for our energy and raw material prices, one almost forgets that 2021 was also a very challenging year for many entrepreneurs. Vaccines proved to be less effective on new variants of the coronavirus, which meant entrepreneurs were again hit by substantial contact-restriction measures. There was also the aftermath of the Brexit (January 2020) and global disruptions in trade flows especially due to the COVID-19 pandemic. As a result, entrepreneurs also faced unusually large increases in various cost components as early as 2021; from agro commodities to transport and energy.

At the same time, despite everything, the food industry as a whole remains a relatively stable and resilient sector. And that resilience of the industry helps it to be able to take responsibility, in an economic sense, but also where sustainability and health are concerned.

A look ahead to the current year 2022 shows that these prices have increased even further. The trend that had started in 2020 and 2021 was further reinforced by the war between Russia and Ukraine and by the effects of climate change. Given these extraordinary developments, FNLI is reflecting on the situation in the first half of 2022. This edition of the monitor primarily explains economic developments in the year 2021.

Download the Food Industry Monitor 2022