FDBusiness.com

Irish Food and Drink Industry Optimism

 Breaking News
  • Orkla Moves into New HQ Orkla, the Nordic region’s largest branded consumer goods company, has moved into new headquarters in Oslo, Norway. The move marks a new era in the company’s history, with Orkla’s businesses in Norway now assembled under one roof. More than 900 Orkla employees are based in the new office premises. “The building we are now moving into is [...]...
  • New Heads For Carlsberg Group’s European Businesses Lars Lehmann has been appointed as Executive Vice President (EVP) for Carlsberg Group’s Eastern European region and as a member of the global brewer’s Executive Committee (ExCom). He will replace Jacek Pastuszka, who will change from EVP Eastern Europe to Western Europe, while current Western Europe EVP Chris Warmoth reverts to Group Strategy as EVP. Effective [...]...
  • Rising Prices Drive Irish Grocery Sales Growth The latest figures from Kantar Worldpanel show the Irish grocery market grew by 3.5% in the 12 weeks to 24 February 2019, putting the sector on a solid footing as the UK finalises preparations to leave the EU. After a prolonged period of deflation, an upward trajectory in grocery prices is making a significant contribution [...]...
  • New EU Rules to Ensure Fairness in the Food Supply Chain The European Parliament has approved a new set of EU rules that will blacklist practices, such as late payments for delivered products, late unilateral cancellations or retroactive order changes, refusal by the buyer to sign a written contract with a supplier and the misuse of confidential information. Threats of retaliation against suppliers, for instance delisting [...]...
  • Mondelēz International Invests in Prebiotic Functional Snacks Mondelēz International has taken a minority investment in Uplift Food, a US-based early-stage start-up focusing on prebiotic functional foods. This is the first venture investment the company is making as part of SnackFutures, the company’s innovation and venture hub aimed at unlocking snacking growth opportunities around the world. A key pillar of the company’s consumer-centric growth [...]...

Irish Food and Drink Industry Optimism

Irish Food and Drink Industry Optimism
January 21
13:54 2011

Irish food and drink manufacturers across all categories are more optimistic and showing a more positive outlook, according to Bord Bia’s recent food industry survey. In total, 70% of exporters involved in the survey viewed the prospects for their business in 2011 as good or very good. When asked to compare their prospects to a year earlier, 56% rated them as better.

In terms of sales prospects, 64% of exporters had increased their sales forecasts for 2011. When asked the source of new business generated over the last year some 76% increased business with existing customers, 34% won back business with former customers, while 18% developed business with new customers.

Employment levels have generally held up well, although figures vary by sector. More than one fifth of respondents have increased full time staff numbers over the last year, with a further 61% maintaining employment levels.

Respondents also highlighted a number of key challenges facing their business including the value of the euro against the pound; pressure on consumer spending; changes in purchasing behaviour; and competition between retailers. The reaction by manufacturers to these challenges has focused on cost control, efficiencies and a review of their customer portfolio which has seen more than half of respondents increase their expenditure on business development over the last year. These measures may also be seen in the context of the difficulty cited by 75% of respondents of securing price increases even as ingredient costs rise. Critically it highlights the need for continuous innovation as consumers embrace the ‘new normal’ in their search for value. Some 62% of respondents listed changing consumer purchasing behaviour with a focus on value for money as a key challenge for industry.

As a consequence, Irish exporters now appear to be in a better position to deal with the ongoing movements in exchange rates. The results of the survey suggest that 82% could sustain an exchange rate with the pound at 1€ = 85p in the long run with 62% able to sustain their business if the rate was between 85p and £1.

Finally, the current strength of global food markets is providing a benign backdrop for the industry, particularly for the primary sectors. The FAO food price index reached an all-time high in December at 215 points, slightly higher than the previous peak in 2008 but as much as 25% higher than in December, 2009 and more than double its level, at 90 points, in 2000. Looking ahead, the growth in world food prices is expected to remain high by historical standards while varying across commodities, with the strongest growth expected in cereals. Ireland’s grass-based livestock production systems should be well positioned to cope with these price pressures (from an input perspective) and even improve relative competitiveness.

About Author

colin

colin

Related Articles



Food & Drink Business Conference & Exhibition 2016

Upcoming Events

  • June 18, 2019Multimodal 2019
AEC v1.0.4

find food jobs

The Magazine

F&D Business Preferred Suppliers

New Subscriber

Subscribe Here



Advertisements