FDI calls for Government action as costs rise
Food Drink Ireland (FDI) has released its Q2 2024 Business Monitor, highlighting a drop in food retail sales and rising operational costs
Print12 September 2024
Food Drink Ireland (FDI), the business association within Ibec representing homegrown and international manufacturers and suppliers across the food and drink sector, has today launched its Food Drink Ireland Business Monitor for Q2 2024.
The FDI Business Monitor tracks key retail, economic and consumer trends.
“The fall in food retail sales values, both month-on-month (-3.57%) and year-on-year (-3.42%) is extremely challenging for food companies, as retail is the primary route to market for the sector,” said Linda Stuart-Trainor, Deputy director, FDI.
This comes at a time when high cost levels and cost inflation (labour, energy and commodities) are impacting on margins, competitiveness, and investment decisions.
Budget 2025
With Budget 2025 weeks away and a general election looming, FDI is urging the Government to support productivity and sustainability in Ireland’s largest indigenous sector.
“While the Irish economy is experiencing some moderation in growth after five years of remarkable expansion, the economic outlook remains positive.”
Stuart-Trainor notes that the State has both a significant forecasted Budget surplus and is running a significant surplus in the Balance of Payments.
“There is an increased need to build resilience against rising costs and wider competitiveness pressures whilst investing heavily in resource efficient processes and accelerating digital transformation measures.”
Those who hope to lead the country after the next election ‘must help, not hinder’ the competitiveness of this key sector, to unlock economic, environmental and social gains, concludes Stuart-Trainor.
Read more: FDI calls for investment in sustainable food manufacturing
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