Warning over future of €18bn food industry
The food and drink industry is worth €18bn to the economy, a report revealed today but employers federation IBEC warned the sector is facing serious difficulties because of rising costs.
The lobby group wants the Government to adopt a single co-ordinated approach to policy decisions in order to stop competitiveness being eroded.
Larry Murrin, chairman of Food and Drink Industry Ireland, said one minister has to take control of policies rather than have them spread across several departments.
“We need a trade policy that recognises the importance of the food and drink sector to the wider economy,” he said.
IBEC said the sector employs 46,000 people directly and accounts for more than 8% of economic activity and they said it accounts for almost a quarter of Gross Value Added of Irish manufacturing.
The survey found the Food and Drink industry is facing enormous challenges at producer, processor and consumer levels.
Among the difficulties are the increase in compliance costs and the growing buying power of multiple food retailers.
Mr Murrin went on: “Policymakers should recognise the importance of the domestic marketplace to all Irish food and drink companies – particularly those with export potential.
“The sector supplies the majority of the €7bn worth of food and drink products consumed annually, and exports almost €7.5bn worth of food and drink products to 120 countries.”
“If we are to sustain our manufacturing base, the Government should support measures to enhance productivity.
“The food and drink industry recognises the need to promote practical, food-related research and development in third level institutions. The industry asks these institutions to respond by aligning themselves with the needs and objectives of the food sector (research/development/innovation, international marketing, environmental management, biotechnology).
“The state could assist with a programme to identify, develop and support more world class Irish food and drink companies and brands. It should make funds available to up-skill and source senior management and non-executive directors for Irish food and drink companies.”
