Food industry calls for govt action to stem export crisis

Representatives of the Irish food and drink industry today met with Agriculture Minister Brendan Smith and called on the Government to take action to avert a crisis among exporters.

“The increasing weakness of sterling is having a crippling effect on Ireland’s food and drink exporters,” said Paul Kelly, Director of Food and Drink Industry Ireland (FDII)

"Exports from the sector this year are likely to be €1bn lower than 2008. Sterling has weakened by 18% over the last year and by 30% over the last two years.”

“43% of food and drink exports go to the UK and while the currency risk cannot be removed, there are measures that can be taken by Government to assist the industry become more competitive, sustain jobs and prepare for a return to export-led growth," said Mr Kelly.

The body called on the Government to introduce a state-backed export credit scheme, to cut industrial energy costs and to provide "realistic" levels of grant aid to companies.

"The food and drink industry is as important to Ireland as the car industry is to Germany," Mr Kelly said.

"No other exporting sector in Ireland has the same degree of exposure to sterling and is facing the same level of difficulty. The Government must act now to protect Ireland's most important industry.

"The sector plays a vital role in the Irish economy, supporting 50,000 jobs directly, 60,000 jobs in distribution and the livelihood of 120,000 farmers," Mr Kelly concluded.

Food and Drink Industry Ireland (FDII) is the representative body for the Irish food and drink industry and is a business sector within IBEC.