A new report by Spanish insurers Crédito y Caución has provided investors with a detailed look at Spain’s food agriculture sector, confirming a recent rise in the number of company mergers and acquisitions. The report points out, however, that the sector continues to be vulnerable to a highly volatile market for basic foodstuffs.
The food agriculture sector represents 9% of Spanish GDP and 15% of exports. Crédito y Caución’s report also found the sector’s financing capability has vastly improved, with foreign investment growing at double-digit rates.
However, the report warns of the risks of a coming price war and the narrowing of profit margins in the sector, which may usher in a further wave of consolidations for the industry in the next year.
Full Content: INESE
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