The outlook for food and beverage processors remains positive amid economic conditions that have shifted from the start of the year, according to the Food and Beverage Report mid-year update from Farm Credit Canada (FCC).
Year-over-year sales growth is expected to slow in the second half of the year to six per cent from 12 per cent in the first half, finishing the year at nine per cent.
“We expect slower growth in the second half of the year as inflation eases, global economic growth moderates and Canadian consumers pay attention to the price of food and their own limited savings compared to a year ago,” said J.P. Gervais, FCC’s Chief Economist. “Food and beverage manufacturers are reckoning with high costs and shifting consumer food patterns, but profitability is projected to improve in the months ahead.”
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