Research firm The Smart Cube has released its latest Topical Insights Report with an outlook for the second half of the year, predicting a rise in global sugar prices will be partly responsible for volatility across global supply chains.
The report looks at the impact of key macro events on direct and indirect categories, and which disruptions can be expected from a supply chain perspective.
Global sugar prices are expected to grow in the second half (H2) of 2023 primarily due to continuously rising demand from India, Indonesia and Thailand, increasing production costs across the food industry.
During H1, a number of macroeconomic and geopolitical events disrupted global supply chains. Events such as Germany’s Supply Chain Due Diligence Act, the war between Russia and Ukraine, earthquakes in Turkey and Syria and the US and Europe banking ‘crisis’ all contributed to the disruption of the global supply chain. The Smart Cube predicts that these disruptions will drive price volatility for H2 2023.
The report details how global wheat prices are expected to rise slightly in the third quarter (Q3) of 2023 as a result of anticipated supply issues in the US, coupled with a rise in demand from animal feed in China and the EU.
Commodity fluctuations and continued volatility
Ritesh Kumar, director of procurement and supply chain intelligence at The Smart Cube, said: “The Smart Cube’s latest Topical Insights Report reveals the massive impact of numerous global disruptions and weather phenomena on the supply chains that underpin the global economy.
“According to our experts, all signs point to commodity price fluctuations, labour and material shortages, and continued volatility to influence various sectors for the second half of the year.
“In an era characterised by unpredictability and macroeconomic events, being well-informed and agile is crucial for businesses, and preparing supply chains to mitigate risks and respond effectively to market fluctuations is paramount to maintain a competitive edge. Embracing the collaborative power of AI and human expertise empowers organisations to navigate challenges with foresight and adaptability, ensuring sustained success in today’s dynamic landscape.”
