Almost two in every five food and agribusinesses is facing cash flow issues, new research has found.
The survey of 120 firms in the sector found 81% had also experienced an increase in costs.
Conducted by farming, food and agribusiness specialist professional services firm, ifac, the research also revealed that 90% of the respondents are now actively taking climate action.
Just over a third said that they have set sustainability targets, while a further four out of every ten said they are in the process of doing so.
44% stated that they were receiving requests for sustainability information from customers.
However, despite the obvious progress being made towards taking responsibility for sustainability, nearly three quarters of those questioned said they are not measuring emissions.
"Sustainability remains a central focus for the sector," said John Donoghue, chief executive at ifac.
"The reduction of energy use and waste are the strongest initiatives."
Ifac's 2024 Food and Agribusiness Report also found that while more than a third of respondents plan to employ more people over the next year, 3 in 4 find it difficult to recruit the right people.
While 46% said that they struggle to meet the salary expectations of qualified candidates.
41% of Irish food companies see exporting as key to growth in 2024.
More than two-thirds of Irish agribusinesses now exporting, the survey which was conducted in July and August found.
In terms of the outlook, nearly two thirds of small and medium sized Irish food and agribusiness are optimistic about this year, up 10% compared to 2022.
80% said they have maintained or increased their turnover in the past year.
"The agrifood sector is poised for further growth and the biggest takeaway from this year’s findings is that the focus on expanding internationally is high on the priority list for Irish agrifood SMEs," said David Leydon, head of agribusiness at ifac.
"Exporting has always been important for our large food companies and co-operatives; some agri-engineering companies have also made a significant impact internationally."
"Already, two-thirds of respondents to our survey are exporting with many more eager to follow their lead. However, there is now a need to accelerate exporting efforts, especially for small and medium companies."
