44% of Irish food and agribusinesses are delaying investments
Pictured together to launch IFAC’s Food and Agribusiness Report 2025 are David Leydon, Head of Growth and Agrifood Consulting at IFAC and Jenny Melia, Enterprise Ireland CEO.
Despite record levels of optimism, 44% of Irish food and agribusinesses are reportedly delaying investment.
The recent ‘2025 Food & Agribusiness Report’, published by the International Federation of Accountants (IFAC), revealed that while record numbers of Irish food and agribusiness leaders are optimistic about the year ahead, almost half have delayed investment because of uncertainty.
Commenting on the report launch, CEO at IFAC, John Donoghue, said: “Our latest Food and Agribusiness Report highlights the resilience and adaptability of the sector amidst challenges like market volatility, increased competitiveness, and climate pressures. The main drivers of growth include international market expansion, and whilst optimism for the future is high, succession planning remains a chronic weak spot.”
From the respondents of the survey, 80% food and agribusinesses reported being optimistic about the performance of their business over the coming 12 months. This was an increase of 25% on 2024’s figure.
Despite the high levels of optimism, investment has been slow, with 44% of respondents delaying it due to uncertainty.
The 2025 Food and Agribusiness Report, now in its 8th year, is Ireland’s only dedicated sentiment tracker for the sector. Based on the views of food and agri-business leaders, the report shows a sector balancing resilience with caution in what IFAC describes as a time of significant change.
Among the respondents of the survey, 80% of businesses report that input costs are still increasing. Increasing costs are the number one reported challenge for companies, followed by trade and tariffs and staffing availability.
On exports, 89% of businesses have maintained or grown international sales in the last year, with the UK and Europe remaining key markets. Market entry and distribution are the key challenges to increasing exports.
In 2024, Bord Bia reported that the value of Irish agrifood exports increased by 5% to €17bn, maintaining the upward trajectory seen in previous years.
Half of the respondents export to the UK, and one in four to the US. However, 66% of those exporting to the US cite tariffs as a top challenge, while 70% overall face foreign exchange risk invoicing in euros, exposing them to currency volatility.
Similar to farmers, 77% of agri-business owners have reported no clear succession or leadership transition plan in place.
With the rise of AI (Artificial Intelligence), 77% of business leaders report using tools such as ChatGPT or Microsoft Co-Pilot. However, only 27% of these business leaders are confident they understand the data security and privacy risks in navigating AI.
The survey shows that marketing, sales and advertising are now the biggest uses of AI in the sector. In 2024, 44% of businesses were applying AI here. In 2025, that figure rose to 53%. Market research and trend analysis are also climbing, from 37% to 40%. New product development has also increased in reliance on AI, which jumped from 21% to 26%.
Sustainability has become a core pressure, with 83% of respondents reporting receiving a similar or increased number of requests for sustainability data from their customers in their value chain over the past year.
Speaking on the findings, Group Head of Growth and Agrifood Consulting at IFAC, David Leydon, said: “Sustainability is now a core part of operations. Back in 2019, just 43% of companies were using sustainable packaging. Fast forward to 2025, and 83% of respondents report receiving a similar or increased number of requests for sustainability data from their customers in their value chain over the past year. This emphasises how crucial it is to have expert advice to address the challenges identified in our report, such as rising costs, foreign exchange fluctuations, sustainability, and the rapid adoption of AI.”
