The majority of Irish food and drinks businesses are prepared for Brexit, marking a noticeable uptick since last year, a report from Bord Bia shows.
Although food and drink firms report being more prepared for Brexit – 93% verses 74% in 2018 – firms are increasingly concerned by the cost implications of customs compliance and stockholding.
According to Bord Bia’s ‘Brexit Barometer 2019: Results & Actions’, firms are also worried about potential weak links in logistics. Many have halted investment plants due to continued uncertainty of the evolving Brexit landscape.
The report was launched this month by Michael Creed, the Minister for Agriculture, Food and the Marine.
It is the third in a series of annual studies that provide a comprehensive measure of Brexit readiness across Ireland’s food and drink sector with findings from 130 companies.
It is the basis and risk diagnostic tool from which Bord Bia offers a tailor-made suite of supports to Ireland’s largest indigenous industry which is uniquely impacted by Brexit.
The UK accounted for 37% (+2%) of all Irish food and drink exports last year, amounting to trade worth €4.5 billion.
Informed by the findings from the 2019 Brexit Barometer, Bord Bia moves into the next phase of Brexit support for industry, focusing on specific services and actions to prepare client companies, including upskilling on Commercial Marketing Strategy development, as well as Key Customer Management.
This will complement new and existing training in critical areas such as customs compliance, logistics and supply chain and currency management.
To date, Brexit related support has been provided by Bord Bia to companies representing 72% of exports to the UK.
“Amidst the continuing uncertainty around Brexit, this report highlights the true value of preparedness,” said Mr Creed.
“My Department, working with Bord Bia, has dedicated considerable resources to ensuring that the unique position of the Irish food and drink industry in all Brexit scenarios is firmly understood.
“The coming months will bring another Brexit deadline, but it is encouraging to see that our industry is doing all it can to prioritise what it can control in facing these challenges.”
