Food industry groups seek State help over exports

The food and drink industry is calling for new measures to help address falling exports in the sector.

The food and drink industry is calling for new measures to help address falling exports in the sector.

New figures from Bord Bia show that exports in the sector fell 6.5 per cent in 2008.

Food and Drink Industry Ireland (FDII) said the industry faces a range of unprecedented challenges, and warned failure to act would result in job losses in the industry.

The lobby group is seeking cuts in electricity and gas prices, a reduction in employment taxes in labour intensive sectors such as food, and state support measures.

"This is Ireland's most important indigenous industry with 230,000 jobs linked to it. The contribution of the sector to the economy can grow further, but only if the massive challenges it faces today are addressed," said FDII Director Paul Kelly.

"Not alone has manufacturing competitiveness declined by over 30 per cent since the start of the decade, but we now face a major currency challenge in the UK market, which accounts for 43 per cent of exports, and a major tightening in the availability of both credit for working capital and export credit insurance."