Over half of food companies see exports grow

Europe, China, and the UK have been driving the growth in the Irish food and beverage sector.

That is according to this year’s Deloitte food and beverage survey.

More than half of food and beverage companies in Ireland have seen improvements in the export market in the past 12 months with the UK, the rest of Europe, and China the top three geographic areas.

Deloitte head of consulting, David Hearn, said the domestic economy had yet to improve but exports were going well.

“Irish food and beverage companies are still facing a very challenging market in Ireland but it’s extremely encouraging that companies are seeing growth in overseas markets.”

The biggest challenges facing food and beverage companies in Ireland include the high cost of doing business, as identified by 28% of respondents, consumer demand (21%), and consumer price sensitivity (20%).

The survey found that other issues included the availability of credit, high taxes, and the regulatory burden.

Only one third of companies operating in the food and beverage sector felt that the Irish economy will return to growth by the second half of 2013. Reducing unemployment and restoring Ireland’s competitiveness were seen as key to improving consumer sentiment and returning the country to growth.

Mr Hearn said that the food and beverage companies were still investing in their businesses which would stand them in good stead when the economy returns to growth.

“What’s also extremely promising is that despite the challenging marketplace, 95% of respondents stated that they are continuing to invest in their business. The main areas of focus for this investment include improving efficiency, sales and marketing, people, R&D and expanding overseas.

“This investment will be critical to ensure that companies are well positioned to take advantage of the opportunities that international markets offer, in addition to those here in the Irish market.”