Food firms’ perfect storm

A 9% currency loss on export earnings, raw materials up to 50% dearer, customers demanding ever more favourable terms, paying more for electricity and fuel — hard times indeed, and it isn’t just farmers complaining, it’s the food processors they sell to.

High global food prices don’t lift all boats — not when consumers are worried about inflation hitting their purchasing power, and the falling value of their homes.

For example, people worried about their building jobs in Ireland’s slowing construction business are changing what they eat, where they eat and where they buy their groceries. This puts supermarkets under pressure, and they pass it back to food processors.