With another Brexit deadline approaching, a study suggests that the Irish food and drink industry has made huge strides in its preparations.
According to Bord Bia’s ‘Brexit Barometer 2019: Results & Actions’ report, Brexit preparedness is widespread amongst Ireland’s food and drinks companies at 93%, compared to 74% in 2018.
Despite the impending deadline, the research revealed 57% of respondents reported an increase in sales to the UK and a further 29% reported stable revenues, with 8 out of 10 Irish companies planning to maintain or grow sales in the UK over the coming year.
However, the study highlights that firms are increasingly concerned by the cost implications of customs compliance and stockholding, and potential weak links in logistics, with many halting investment plans due to the continued uncertainty of the evolving Brexit landscape.
Bord Bia’s 2019 Brexit Barometer is the third in a series of annual studies that provide a comprehensive measure of Brexit readiness across Ireland’s food and drink sector with findings from 130 companies. It is the basis and risk diagnostic tool from which Bord Bia offers a tailormade suite of support to Ireland’s largest indigenous industry which is uniquely impacted by Brexit. The UK accounted for 37% (+2%) of all Irish food and drink exports last year, amounting to trade worth €4.5bn.
Tara McCarthy, CEO of Bord Bia, commented: “With 93% of food and drinks companies that responded to the Barometer, representing 72% of all UK exports, making plans and taking action, we have witnessed transformative levels of engagement due to two interlinked factors: firstly, the expectation for much of 2018 that a negotiated agreement was finally in sight and, secondly, the return to prominence of a ‘cliff edge’ no deal Brexit which remains a looming threat. This experience left Irish exporters in no doubt that their future trading relationship with UK customers should be managed as a priority.
“Also strikingly clear from the 2019 data is the spirit of resilience and determination that is at the core of the response from the Irish food industry. It has been said that there are no net upsides to Brexit for Ireland. It is a challenging political and economic scenario that puts pressure on the close tie with our nearest neighbour and our largest trading partner. What the 2019 Brexit Barometer shows is that our industry is attuned to the issues that lie ahead and both realistic and resolute in its response to them.
“Eight out of ten companies plan to maintain or grow sales in the UK, whilst simultaneously, three quarters of Irish companies are actively looking beyond familiar marketplaces. This process is gaining momentum as planning around Brexit translates into concrete actions in the months ahead.”
