At Great American, our team of professionals understand what to look for when valuing a company in the Agriculture and Food industry, food products and processing equipment; particularly, how specialization of Ag products or equipment can be analyzed to maximize value.
From soil to plate, GA has extensive experience at every level of the supply chain within Agriculture’s five main production categories; Grain (corn, wheat, soybeans), Meat (beef, pork, poultry, sheep), Seafood (fish, shellfish, roe), Fruit (berries and citrus) and Vegetables (greens and legumes). Understanding the market nuances of these products and how they affect factors such as sales, gross margin, inventory levels and pricing is integral to producing the proper valuation for financial reporting and lending purposes.
It’s typical for the $136 billion agriculture market to experience some volatility due to consumer habits and weather conditions. For example, the recent gluten-free trend has negatively impacted wheat demand, causing a decline in wheat commodity prices. Controversy over GMO foods has also affected some crops. Droughts in soybean-producing areas such as Brazil are having an immediate effect on commodities, which in turn affects downstream values in equipment used primarily in the industry.