Rising costs hit 90% of agri-food firms
The 2026 ifac Food and Agri-business Report found that 79% intend to grow over the next 12 months, while 38% plan to employ more people. File picture
Almost eight in 10 food and agri-businesses still plan to grow over the coming year, despite cost pressures reaching their highest level in nine years.
Nine in 10 Irish food and agri-businesses have faced rising costs over the past year, but almost eight in 10 still intend to grow their business, a new report has found.
The 2026 ifac Food and Agri-business Report found that 91% of businesses experienced increased costs, the highest proportion recorded in the report’s nine-year history.
Despite this, 79% intend to grow over the next 12 months, while 38% plan to employ more people. However, optimism about future performance has fallen sharply, from 80% last year to 65%.
The findings are based on a survey of 158 Irish food and agri-businesses conducted during June and July.
The report also points to a widening gap between turnover and profitability. While 58% of businesses increased their revenue during the past year, only 38% recorded an increase in net profit.
David Leydon, group head of Growth and Agri-food Consulting at ifac, said businesses remained committed to expansion despite reduced confidence in the wider operating environment.
“The challenge now is achieving profitable growth rather than growth at any cost,” he said. “Cost increases have affected nine out of 10 companies in the past year, the highest level recorded in nine years of the report.
“With people, energy, compliance and transport costs all rising, owners need a clear understanding of where margin is being made, by market, product, customer and channel.”
Financial visibility remains a concern, with half of businesses receiving monthly management accounts but one in four receiving formal figures only once a year.
The report also found that the use of artificial intelligence has increased dramatically, rising from 21% three years ago to 80% today. However, almost half of businesses have no governance arrangements in place for employees’ use of AI, while 89% have no designated person or team responsible for it.
Mr Leydon said the speed of AI adoption had outpaced the structures established to oversee it. “At the same time, AI adoption has advanced ahead of governance, and supply chain disruption has highlighted how few businesses have formal risk monitoring in place,” he said.
“Across almost every theme in this year’s report, the message is consistent: change is outpacing the structures businesses have in place to manage it.”
