‘Huge pressure’ in food sector

GOVERNMENT was given a stark warning yesterday to respond to the huge pressures facing the Irish food sector.

Speaking at the Food and Drinks Industry Ireland (FDII) conference in Dublin, chairman, Larry Murrin, warned: "Unless something dramatic is done to manage the unprecedented challenges facing Ireland's food manufacturing sector, there will be significant diminishment in both export earnings and Irish food choices available to consumers".

Government action was needed immediately, meanwhile, to prevent serious damage to export earnings in the food sector, he added.

Rising energy and labour costs, World Trade Organisation and Common Agricultural Policy changes and the abolition of the Groceries Order were big issues the industry had to grapple with, according to Mr Murrin.

In his address the chairman called on government to support the food industry by recognising its economic importance when developing an Irish response to the WTO negotiations and to CAP reform.

It was vital too that the state kept the sector in mind when forming energy policy to support the industry's competitiveness, Mr Murrin added.

"The industry has played its part by innovating and improving efficiency in its effort to fend off strong competition in domestic and export markets," he said.