Managing costs key to protecting margins for food and beverage manufacturing

Profitability is always a balancing act between managing costs and driving sales. But in 2025, that balance is proving more delicate than usual for the food and beverage manufacturing sector. While fluctuations in weather and animal health are familiar challenges that influence commodity prices, political uncertainty is adding a new layer of complexity.

We’ve seen this before. During 2017 and 2018, tariffs on steel, aluminum, and softwood lumber sent shockwaves through the industry. More recently, geopolitical tensions like Russia’s war against Ukraine disrupted global grain markets. This year, manufacturers are grappling with both types of volatility, natural and political, making cost forecasting difficult.

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