Food sector predicts strong trading

Businesses working in the food sector are positive about the environment they are operating in, according to a new survey.

The study, which has been conducted by the Ibec group, Food and Drink Industry Ireland (FDII), shows 62 per cent of food industry respondents expect an increase in export sales in the next three months.

In addition, 34 per cent of respondents describe the business environment as either good or very good compared with 19 per cent for overall business respondents.

The survey also reveals that 18 per cent of food industry respondents are more confident about their business than three months ago, while 58 per cent maintained the same level of confidence.

However, only 30 per cent of respondents expect an increase in domestic sales in the next three months, but that is still slightly higher that the overall business response of 26 per cent.

Some 17 per cent of businesses in the sector expect to increase employee numbers in the next three months, while 31 per cent forecast redundancies at their firms. Moreover, 30 per cent of respondents expect to increase their sales price in the next three months compared to 31 per cent who expect sales price to fall.

FDII director Paul Kelly said the focus must remain on competitiveness to ensure the food sector continues to grow.

"The food industry is deeply concerned at a number of recently published pieces of legislation that will push up costs and ultimately cost jobs. It is vital that the recovery is not undermined by rushed and poorly thought out legislation."

Mr Kelly also noted that rising international food commodity prices, while beneficial from an export perspective, were putting pressure on food processors and would ultimately contribute to food price inflation.