British budget to aid exporters

FOOD exporters stand to benefit from increased earnings thanks to measures – particularly a lowering of corporation tax – unveiled in the British budget earlier this week.

“Lower UK corporation taxes, higher VAT and the weak euro significantly boost the competitiveness of Irish exporters in general and food exporters in particular. Most of the Irish-listed food groups have significant British operations and a lower UK corporation tax should improve earnings,” according to Paul Meade of NCB Stockbrokers.

While pointing out that Irish drinks group, C&C – which is the second largest cider manufacturer in the British market through its ownership of the Magners, Blackthorn and Gaymers cider brands – is the obvious beneficiary due to the British Government’s decision to reverse its earlier decision of increasing duty on cider products; Mr Meade said that the likes of Irish-Swiss bakery group, Aryzta and Origin Enterprises could also benefit.