Food groups face a challenging year ahead

VIEWS on the future direction of food prices are hardening and their performance in 2008 is likely to pose challenges for Irish food groups, which could struggle to recover rising prices.

It’s a bit of a Catch 22 because if they do succeed in recovering prices then the downside could be falling sales.

That view is probably too pessimistic, and with banking and construction under pressure the food companies could enjoy a good, if somewhat challenging year.