Food market still promising good returns

WITH fears growing that the world economy is heading for recession, looking at the share prospects, or indeed the outlook, for the Irish food sector could hardly be described as a tantalising prospect.

However, relative to its EU and US peers, the sector has been undervalued as well as the banking and construction sectors and actually offers good value going forward. The same argument has been made for the banks and other sectors that have been de-rated in the past six months on fears of a collapse in the Irish economy following the housing slowdown.

Since mid-2007 Irish stocks generally have been marked down in price relative to other markets.