The latest quarterly business monitor from Food Drink Ireland shows ongoing challenges for indigenous food and drink manufacturers as long-term inflationary trends in transport, energy and food continue.
Food Drink Ireland, the Ibec group representing the food and drink sector, has today called on Government to extend the energy support schemes for business due to on-going cost competitiveness pressures.
FDI also said the reality of high input business costs will be further exacerbated by the introduction of border controls in Britain from October 31.
"It is essential that Government help the sector offset high energy costs by extending the two energy support schemes (TBESS and UECS) to the end of 2023 and amending the qualification criteria so more companies can avail of the supports, FDI said.
FDI said that inflation continues to be an issue with food & non-alcoholic beverages in June rising by 10.2% compared to the same month last year, but the pace of inflation has slowed.
But it said that ;ong terms trends however show significant increases in wages, transport costs and wholesale energy prices compared to three years ago.
"The food and drink sector continues to endure during challenging times and faces ongoing costs due to Brexit and more specifically the forthcoming introduction of border controls to our largest export market which is why FDI is calling for the extension of the Government's two energy support schemes," Jonathan McDade, Deputy Director of Food Drink Ireland, said.
