Foodsectornews.com - Ireland Food Industry Needs Govt. Support

Ireland Food Industry Needs Govt. Support

Sunday, 17 June 2007

A report by IBEC (Irish Business and Employers Confederation) group FDII (Food and Drink Industry Ireland) has urged the govt. to take up a policy, which will take complete account of industry's significance

as a major contributor to wider economy.

It says that Ireland food industry directly employs about 46,000 people & totals for over 8% of the economic activities in the country. If both linked & direct economic activities are considered, food & drink industry is the leading economic activity generator in manufacturing, accounting for 35-40% value added via manufacturing industry.

Food & Drink Industry of Ireland is facing big challenges at processor, producer & consumer levels. Rising compliance costs & growing buying strength of various food retailers are among the key challenges.

Paul Kelly, Food Director, said that industry could grow to US$ 32 Billion per year in revenue till 2016. The figure is at US$ 22.72 Billion at present. However, to attain this mark, govt. needs to prioritize the industry & revise the policy to provide increased coherence among the departments.

The industry is now asking for an examination of true regulation costs, including alternative voluntary code benefits. Urgent improvements are required in transport & infrastructure along with improved alignment between food & education sectors & a program for developing world-class companies in Ireland.

The report also urges a ban on the predatory pricing set by retailers. The industry wants govt. to help in restructuring companies, development of new technologies & recognition from policymakers of importance of domestic marketplace to food & drink firms in Ireland.

"To maintain manufacturing base of Ireland Food Industry, govt. must adopt innovative measures to improve production. Developing more research parks will be a good idea," said an analyst at RNCOS.

The report concludes by highlighting the importance for a single coordinated focus at govt. level on food & drinks industry. Presently, Enterprise, Health & Agriculture departments share this responsibility.