The Director of Food Drink Industry Ireland (FDII), Paul Kelly has warned that Ireland’s largest indigenous sector faces substantial challenges in the years ahead in a world that has changed radically in 12 months. 

Mr Kelly was speaking at the launch of the first FDII Business Monitor report this morning. The report shows that food and drink is Ireland’s largest indigenous sector with 230,000 linked jobs and has seen exports grow to reach €11.15 billion in 2016.

It is estimated that half of exports are by indigenous Irish companies with destinations including the UK (40%), Rest of Europe (31%) and international markets (29%).

Furthermore, Ireland is the largest net exporter of dairy ingredients, beef and lamb in Europe and exports over 80% of its dairy and beef production.

Mr Kelly has called on the Government to urgently implement a range of policy measures to ensure that the Irish agri-food sector remains innovative, competitive and capable of meeting these challenges and to maximise the sectors ability to seek out new opportunities in existing and new markets.

Speaking at today's launch, Mr Kelly said, "On the international front, 2016 saw the risks from Brexit beginning to crystallise for Irish food and drink exporters. We witnessed a drop of €560m in UK exports, the formation of a new and uncertain global trade environment, and challenges to the integrity of the EU Single Market."

He added, "At home in the domestic grocery market, declining consumer sentiment has given way to a decrease in sales relative to volume growth and this is putting further pressure on business costs."

Source: www.businessworld.ie