AGRI-food businesses in Ireland are out performing all other sectors in terms of growth, according to the latest InterTradeIreland business barometer.
Already the island’s biggest indigenous sector, it is strongly outstripping other sectors in sales, employment, exporting and innovative activities, with more than half (53 per cent) growing in the last quarter compared to 39 per cent of all firms.
There was a significant gap, when compared to other sectors, in the number of agri-firms increasing their sales (45 per cent versus 29 per cent).
And nearly a fifth (18 per cent) of agri-food firms increased employment in the last quarter while more than half (52 per cent) are exporting, which is twice as many as the island-wide average.
Aidan Gough, strategy and policy director at InterTradeIreland, said: “Agri-food is a genuinely all-island industrial cluster. There are significant concentrations in every county on the island, north and south, employing in total more than 180,000 people and contributing 12 per cent to our economic wealth.
“And these results show that agri-food firms are more innovative than most, with only 23 per cent not undertaking any innovative activity in the past three years.
“New processes, product development and branding or design are the most popular innovations and more than two thirds (69 per cent) have collaborated with others in doing this work.”
He added that employment figures are also encouraging for the sector.
“It is positive news that 18 per cent of the agri-food companies questioned reported that they increased their staff numbers in this quarter with a further 27 per cent planning to create job opportunities in the coming year.
“This favourable job creation picture is particularly applicable to businesses employing more than ten people, where 28 per cent increased employment and a further 32 per cent expect to do so.
“The growth in agri-food firms is most likely related to their strong tendency to be innovative and actively exporting. Some 52 per cent of agri-SMEs are selling across the border or exporting outside the island, which is twice the number of firms across the full spectrum of sectors.”
Almost two third (62 per cent) of the 119 agri-food businesses surveyed for the current monitor are scanning the horizon to see what areas of opportunity might be out there; from developing new premium products to taking advantage of the health and wellness agenda.
Continuing to price products competitively is expected to be a challenge for almost three quarters (72 per cent) of respondents while 69 per cent see controlling costs as an ongoing battle.
Companies in this sector report the same issues as most firms around overheads and cash flow but a larger number of businesses than normal regard keeping up with innovations and recruiting the right skills as important issues.
David Dobbin, group chief executive of Dale Farm Ltd and a member of the Northern Ireland Agri-Food Strategy Board, said: “While agri-food markets are extremely challenging at present, the industry continues to grow, especially in export markets.
“Competitiveness in terms of costs and product offering are key strategic issues and therefore product and process innovation is key to driving growth and improving financial performance.
“The industry is moving more and more to a higher skills base deploying new technology and more sophisticated supply chains.”
