Competitiveness top priority for Food and Drink sector

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 Food Drink Ireland (FDI), the Ibec group representing the food and drink sector, emphasizes the importance of government policy in ensuring the competitiveness of Ireland’s largest indigenous manufacturing sector amidst growing challenges. At the launch of the group’s latest document today, “Competitive Food and Drink: Policy priorities of the food and drink sector 2026” (see attached), FDI Director Paul Kelly stated: "The economic contribution of Ireland’s food and drink sector remains unparalleled within indigenous industry. With exports reaching €19 billion in 2025, the sector continues to demonstrate resilience in a highly volatile global trading environment. However, the competitiveness of the sector is under sustained pressure.”

He outlined: “Ongoing inflation in energy, raw materials, transport and compliance costs, combined with increasing regulatory complexity at EU level, continues to erode margins in a sector characterised by tight profitability. Labour costs also impact on business viability, and companies are also facing persistent challenges around attraction, retention and housing availability for employees. Geopolitical volatility, shifting US trade policy, and the cumulative impact of new EU measures on packaging, sustainability and supply chains add further uncertainty”.

“Competitive Food & Drink: Policy priorities of the food and drink sector 2026” outlines policy priorities for the following:

• Competitiveness
• Sustainability
• Skills and human capital
• Innovation
• Food safety and nutrition
• Export markets – international trade / Brexit response

He concluded “Ireland’s Presidency of the Council of the European Union in the second half of this year presents a strategic opportunity to strengthen the competitiveness of this critical sector. The Presidency provides a platform for Ireland to champion policies that reinforce Europe’s food security, trade leadership and industrial resilience, while safeguarding the long-term viability of indigenous food and drink enterprises at home.”