Most food SMEs seeing sales declines

Over half of Love Irish Food’s SME members say they are currently experiencing greater short-term cash requirements than in 2019. File image

More than half of Irish food-and-drink SMEs are anticipating a decline in sales revenues this year due to the ongoing impact of Covid-19.

A Love Irish Food survey has found that a third of its SME member brands expect sales to fall steeply — or by more than 15% — in 2020, while 54% believe their sales value will be down overall.

Nearly half (44%) of the association’s SME members said the sales decline will result in their businesses employing fewer people. Just 10% of businesses expect to increase their employee numbers post-Covid-19.

Over half of Love Irish Food’s SME members say they are currently experiencing greater short-term cash requirements than in 2019.

Despite the challenges hindering the growth prospects of many food-and-drink SMEs, 62% of Love Irish Food members believe that 2021 will be a better year for businesses than 2020.

"As a material contributor to our local and national economies, the Irish food industry faces significant uncertainty, not just as we emerge from the pandemic, but also in the face of Brexit,” said Love Irish Food executive director Kieran Rumley.

"Irish branded food suppliers have worked hard to maintain continuity of supply to the retail trade and will continue to do so as it faces into the prospect of a hard and complex Brexit. 

"Maintaining food brands on shelf during this period will be a key challenge to the industry.”