Call to cut food/drink sector costs

IRELAND’s food and drink industry needs to cut costs by 20% to sustain the sector’s recovery based on growing exports but hampered by difficult domestic market conditions, according to Food and Drink Industry Ireland (FDII).

FDII, a business sector in IBEC, today publishes its 2010 Competitiveness Indicators Report, which shows that the sector is on a recovery path after an extremely difficult 2008/2009 period.

FDII director Paul Kelly said: “The competitive position of Ireland’s food and drink sector has improved as a result of economy-wide deflation, affecting many input costs, and exchange rate factors. However, a further significant improvement in cost competitiveness is needed to generate sustainable export-led growth.