Half of food producers see labour shortages as a continuing threat to their business, a new survey has found.
The research by Love Irish Food and PwC also revealed that 70% of Irish food producers see input costs and inflationary pressures as a major threat.
Despite the challenges though, the poll found that 95% of such firms are confident about their growth prospects.
The 2023 SME Food Barometer also found that almost three quarters of those questioned think economic growth will either improve or remain the same over the coming year.
"While Irish food producers are facing major challenges with inflation, supply chain issues, labour retention, and energy costs, there has been a noticeable improvement since last year and it is promising to see the confidence and resilience these businesses are demonstrating in their growth prospects," said Kieran Rumley, Executive Director, Love Irish Food.
"Pressure remains to recruit and retain staff adding to the cost of labour."
The survey of 76 small and medium sized Irish food producers found over half had embedded sustainability into their strategy.
However, just 15% have made a carbon-neutral commitment in the last year, although half are working towards such a commitment.
Almost three quarters said they intend to be carbon neutral by 2030.
"Irish food and drink companies are upbeat about the future and are confident about their organisations' abilities to innovate and tackle the challenges ahead," said Owen McFeely, Director, PwC Retail & Consumer Practice.
"Sustainability is clearly a priority – being seen as not just the right thing to do but also delivering real potential for efficiencies in their businesses."
"Integration of sustainability into core business strategy is the way forward and it's encouraging to see organisations making progress in this area," he added.
