Agrifood costs are rising, high quality labour is in short supply, optimism is falling, climate change is firmly on the business agenda and Brexit now looms large on the horizon.

They’re some of the findings from the Ifac Food and AgriBusiness 2019 report which annually tracks the sentiment of business leaders in the Irish food and agribusiness sector.

The highly digestible report benefits from excellent graphic design by Ultra Design.

Overall, the findings point to a less than positive outlook across Ireland compared to last year, including a 20% decrease in optimism and a 100% increase in concern over Brexit. Ifac commissioned Amárach Research to carry out the study among 200 owners, MDs and CEOs of micro-businesses and SMEs.

KEY FINDINGS

• 100% increase in concern about Brexit (increasing from 21% to 42% year-on-year).
• 81% of companies do not have a clear succession plan in place.
• Sustainable packaging, veganism and provenance are all influencing food businesses in Ireland.
• Three out of four food and agribusinesses are taking initiatives to reduce their impact on climate change. Managing waste and by-products is the most common action, and 43% are purchasing sustainable packaging.
• Private label retail is playing an increasing role as a route to market. Six out of ten food businesses who use this route to market have seen double-digit growth in their private label sales over the past five years.
• 55% of companies would not consider selling their business in the next five years.
• Fewer businesses are looking for bank finance – down 30% year-on-year.
• One in four food and agri enterprises now use state grants to help grow their business.

In Association with

David Leydon, Ifac’s Head of Food and AgriBusiness, commented: “Entrepreneurs who make up our food and agribusiness sector are under increasing pressure on multiple fronts. While our report explores what’s driving this less positive outlook, it also contains advice and tools to support business owners through these challenges, and to grow profitable and sustainable businesses for the future.

"We must remember that the long-term future of the sector, led by resilient entrepreneurs across Ireland, is extraordinarily bright, despite the current challenges.”

Wealth Accumulation

John Donoghue (pictured), Ifac’s chief executive, stated: “Business owners who drive regional development and provide local employment need support from consumers, banks, professional advisors and relevant state departments.

“Our report confirms that succession remains a significant challenge for owner managers in the sector. Less than one in five food and agribusinesses surveyed have a clear succession plan in place. Successful intergenerational wealth accumulation and preservation remains an unplanned aspiration for the majority of business owners.

“There are many reasons for this failure to plan for a future event which all business owners who build and retain viable businesses will eventually face. In ifac we will be intensifying our efforts to ensure our clients understand the many benefits of succession planning, and when the time is right, start their journey towards a sound business transition.

“Some key takeaways in the report include: optimise your tax structure, seek out state supports, take a blended approach to finance, invest in your financial future, and don’t be afraid to work hard and smart in pursuit of your business goals.”