How can you avoid overexposure in a competitive, fast-paced industry?
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Our international team of trade experts is here to help. Contact us to learn more about our coverage options for the Food and Agriculture Industry or request a free, no obligation quote that includes credit reports for your largest trade partners.
Food and Agriculture Industry
The short-lived surge in commodity prices caused by worldwide droughts, global conflicts, and supply chain disruption from COVID-19 is now in the past.
With the agricultural and food sector is entering an era of volatility unlike any before. Supply chain issues, labor shortages, rising input costs and evolving trade regulations are set to transform U.S. supply chains and heighten financial risks for businesses. As tariffs put in place by the Trump administration on crucial imports being enacted, and erratic weather patterns threatening upcoming harvests, companies must swiftly adapt.
Trade credit insurance plays a crucial role in this landscape by safeguarding businesses against being vulnerable to potential losses. Enabling them to be protected from financial risk before a problem is evident and ensure that they are secure in navigating challenges and continue to sustain operations efficiently.
Curious About Pricing?
Atradius is here to help. Contact us to learn more about our coverage options or request a free, no obligation quote that includes credit reports for your largest trade partners.
The industry is facing increased prices due to inflation, restricted food distribution and production delays. The Consumer Price Index (CPI) for food was 2.6% higher in February 2025 compared to the previous year. With these increasing production costs, there is an ongoing of labor shortages, particularly in farming, food processing and transportation causing delays and impacting revenue streams. Credit insurance protects businesses from these losses amid economic uncertainty.
The U.S. agricultural sector is experiencing a significant trade imbalance. Exports dropped to $191 billion in 2024, while imports reached a record of $263 billion, leading to a growing trade deficit and heightened financial risks for exporters. Due to shifting trade policies and an increase in global competition, it negatively affects the profitability and market stability. Addressing this through coverage insurance against international buyers helps businesses manage the unpredictable market and expand globally.
Consumer habits are always changing, and food businesses must keep up or risk becoming obsolete. Especially for smaller businesses, staying aware of changing trends and responding accordingly can be burdensome. Consumers are increasingly demanding full transparency. Distrust in the food industry has increased the need for food and drink manufacturers to be more transparent about their ingredients, production processses, and supply chains.
Atradius’ easy to use website and quick response has made it possible for us to qualify new buyers with a minimal amount of effort. This has been a big boost to our business.
Benefits to Credit Insurance
Trade credit insurance is a risk management tool that can help protect your company’s commercial accounts receivable from the devastating effects of loss caused by a bankruptcy or protracted default of your buyers. No company wants to face the unknown. At Atradius, we give our clients peace of mind knowing that their policy protects them from a customer’s sudden inability to pay. Especially in an industry that must adhere to high-cost environmental regulations, trade credit insurance can help with cash flow and to ensure companies are financially stable.
Atradius analyzes industry trends and the risk of every buyer to ensure you are working with stable customers. If a previously reliable customer starts showing signs of deteriorating payment trends, we alert you right away so you can take steps to insure and protect your accounts receivable. We evaluate the supply chain and your trading partners from each angle and can alert you to trouble coming down the pipeline before there is a loss. And if a loss does occur, having a trade credit insurance policy means your business doesn’t have to take the full hit.
Companies in the midst of a growth phase may need to put up accounts receivable as capital to receive additional funds from a bank. Having a trade credit policy with Atradius that mitigates your risk means banks are more comfortable loaning the funds you need. Securing receivables with a trade credit insurance policy allows you to leverage your borrowing base and increases your access to working capital. This often includes the ability to borrow against foreign receivables previously excluded by the lender.
For companies seeking to safely grow sales, working capital is essential. If your company doesn’t feel comfortable increasing existing credit lines or initiating credit lines in new markets, we can help. We are a global company with a presence on every continent. Our innovative services provide you with the practical tools you need to manage your receivables, building the foundation for solid business growth and success. Trade credit Insurance allows suppliers to remain competitive offering terms with peace of mind that they are protected in the event of bankruptcy – helping you remain competitive and grow sales while transferring much of the risk.
Our policies are cost effective. On average, the rate we charge falls to less than one half of 1% of sales. If a company sets aside a debt reserve of 5%, our services are extremely cost effective, because with our accounts receivable coverage you will get the majority of any lost money back.
Get Your Questions Answered or Request a Quote
Atradius is here to help. Contact us to learn more about our coverage options or request a free, no obligation quote that includes credit reports for your largest trade partners.