175
The number of countries importing
Irish food and drink
¤2bn
The value of beef exports last year
Challenges for
the sector
Gareth Murphy,
sales and business
development
manager Keogh’s,
at the Ireland stand
at Gulfood 2014 in
Dubai
Thefoodanddrinksectorisnot
withoutitschallenges.
Commoditypricescanswing
eitherwayovernightandlotsof
volatilityispredictedforthedairy
sectorwhenquotasare
abolished.
StubbsGazette’s2014Food
andDrinksIndustryReport
highlightsseveralother
challengesfacing thesector.
“Climatechangemaybethewild
card,”itsays,notingthatcoping
withtheeffectsofclimate
changehasbecomeareality.
“Indeedthefoodanddrinks
industrydoesn’thaveabsolutely
everythinggoingforit.The
bankingcrisisandassociated
creditcrunchhaslimitedfunding
toprimaryproducers,”itsays,
butaddsthatlargercompanies
areconsideredwellfundedto
continueontheirpathstogrowth.
“Ontheretailsideprice
pressureisrelentlesswith
privatelabelbrandsprovidingan
increasingchallengetobrands
ascustomersmodifytheir
buyingbehavioursintheageof
austerity,”thereportadds.
“Thereisalsothefactorof
creepingbureaucracywith
qualitycontrolandrequirements
ontraceabilityaddingsizablyto
thecostbase.”Butitaddsthat
thesecostscouldbejustified
whenthepotentialcostofafood
scareisconsidered.
“Theeffectsofthefoot and
mouthoutbreakof2001,tothe
porkcontaminationcrisisof
2008tothehorsemeat
adulterationscandaloflastyear,
showthefragilityofthe
reputationofthefoodanddrinks
industry,”itsays.“Morethan
mostitissusceptibleto
catastrophicsetbacks.”
THE IRISH TIMES | March 26, 2014 | 5