The food industry warned that consumers are facing a significant reduction in choice as food companies creak under the weight of higher manufacturing costs.
Speaking at IBEC's food and drink industry Ireland (FDII) annual conference FDII chairman Larry Murrin warned of complacency about the Irish food industry and said unless something is done to manage the unprecedented challenges export earnings and Irish food choices will take a significant hit.
Mr Murrin, who is MD of Dawn Farm Foods, said pressures facing the sector include rising energy and labour costs, combined with WTO and common agricultural policy changes, the abolition of the groceries order and manufactures inability to recover their costs from retailers.
He said that Ireland had become a high-cost economy and the industry was concerned about the Government's lack of recognition of its importance to the economy when developing an Irish response to the WTO negotiations and CAP reform.
He said that the Government should develop an energy policy that supports the manufacturing base and minimise business and labour cost increases.
