IBERSOL | Integrated Management Report - 2024

INTEGRATED MANAGEMENT REPORT 2024 Commodity prices The evolution of commodity prices, including cereals, energy, milk, dairy products, and meat, strongly impacts the restaurant market. Recent price fluctuations, whether due to imbalances between supply and demand or the effects of disasters (e.g., COVID-19), have significantly affected economic activities and may continue to do so. In 2024, the global food commodity market remained volatile, influenced by climatic, geopolitical, and economic factors. Key commodities – wheat, corn, soybeans, rice, and sugar – experienced significant price variations, reflecting both supply shocks and changes in demand. Wheat and corn, for instance, faced pressures due to prolonged droughts in producing regions such as the USA, Argentina, and parts of Eastern Europe. The war in Ukraine continued to affect global grain supply, reducing exports and driving up prices, especially in the early part of the year. However, improved Russian harvests and the European Union’s diversification of suppliers helped curb price increases in the second half of the year. Soybean prices remained relatively stable, driven by a partial recovery in production in Brazil, despite adverse climatic conditions. Rice prices saw spikes following export restrictions imposed by India, the world’s largest exporter, which sought to ensure domestic supply amid rising food inflation. In Europe, food prices for consumers remained high, reflecting both raw material costs and persistent energy costs. Consumption of food commodities remained relatively stable, but with changes in purchasing patterns, such as an increased demand for local and sustainable products. For2025, aslight stabilization inprices isexpected,with improvedharvests anticipated due to more favourable climatic conditions predicted by the weakened El Niño. However, risks persist: geopolitical tensions, extreme climate change, and unpredictable trade policies may reverse this trend. Europe is expected to continue investing in food resilience, sustainability, and trade partnerships to mitigate these impacts. 285