Food and drink sector hit by costs

THE competitiveness of the Irish food and drink sector has been damaged by a high business cost base and sterling depreciation, according to a report.

It points out that the sector had consistent output growth since the start of the decade, high levels of productivity compared with competitor economies and a positive trade balance of €3 billion annually. But it says urgent government action is now needed to sustain and develop the industry, which supports 50,000 jobs directly, 60,000 jobs in distribution and the livelihoods of 120,000 farmers.

Food and Drink Industry Ireland or FDII, a business group within IBEC, which published the report, warned that the competitive position of Ireland’s most important and dynamic indigenous sector has been severely damaged by rising business costs and, more recently, the huge depreciation of sterling.