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
After a temporary spike in commodity prices driven by droughts, global conflicts, and pandemic‑related supply chain disruptions, the food and agriculture sector is now entering a prolonged period of volatility. Shifting trade policies, climate instability, and rising production costs are reshaping financial risk across the industry.
The agricultural and food sector is facing unprecedented volatility driven by shifting trade policies, climate instability, and rising production costs. Persistent supply chain disruptions, labor shortages, rising input costs, and rapidly changing trade regulations are increasing financial risk across the U.S. food and agriculture supply chain. With new tariffs affecting key agricultural imports and erratic weather patterns threatening harvest stability, food and agriculture businesses must adapt quickly to protect margins and maintain supply continuity.
Trade credit insurance helps food and agriculture businesses protect their receivables from non‑payment, reduce exposure to buyer insolvency, and maintain stable cash flow in a volatile market. It provides early‑warning insights into buyer risk and ensures businesses can navigate market disruptions while sustaining operations and growth.
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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.
Food producers and distributors are facing higher operating costs driven by inflation, transportation bottlenecks, and production delays. Labor shortages across farming, food processing, and transportation continue to slow production and distribution, putting pressure on revenue and cash flow.
The U.S. agricultural sector is facing a widening trade imbalance that increases financial risk for exporters. In 2024, agricultural exports fell to $191 billion while imports climbed to a record $263 billion, creating a growing trade deficit and increasing exposure for U.S. producers. Trade credit insurance helps exporters manage international buyer risk, stabilize cash flow, and expand into global markets with greater confidence.
Rapidly shifting consumer preferences require food businesses to adapt quickly or risk losing market share. Demand for sustainable, traceable, and value‑added products is reshaping production and distribution strategies across the industry. 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.