Irish Food Industry Seeks Government Support Amid Economic Pressures
Food Drink Ireland calls for targeted government support in Budget 2026 as the sector faces mounting cost pressures and economic challenges, emphasizing the need for sustainable growth and competitiveness.
Food Drink Ireland Director Paul Kelly presenting industry concerns at pre-Budget submission meeting
Food Drink Ireland (FDI), the leading advocate for Ireland's largest indigenous manufacturing sector, has submitted its pre-Budget 2026 proposal, highlighting the urgent need for targeted support amid escalating economic challenges. This comes as Ireland's broader economic landscape shows mixed signals despite strong performance in some sectors.
Mounting Cost Pressures
FDI Director Paul Kelly emphasized the significant cost pressures facing the industry, stating, "The most widely expected cost increases are in the areas of wage growth, investment in sustainability, cost of raw materials, investment in digitalisation and cost of transport."
The sector's challenges mirror broader economic trends, as other major Irish industries grapple with market volatility and rising operational costs.
Government Policy Impact
Kelly highlighted the crucial role of domestic policy decisions in shaping these challenges. "Many of these pressures are heavily influenced by Government policy in Ireland," he noted, emphasizing the need for strategic budget interventions to enhance competitiveness and growth opportunities.
Strategic Investment Priorities
The industry's focus on sustainable growth aligns with broader market trends, as demonstrated by recent significant investments in Irish industry sectors. FDI's submission emphasizes:
- Sustainable manufacturing practices
- Digital transformation initiatives
- Supply chain resilience
- Workforce development programs
Experience Economy Integration
The submission also addresses the vital intersection between food, tourism, and culture, positioning the sector as a crucial driver of Ireland's Experience Economy development.
Van Morrison
Irish journalist exploring the intersections of politics, culture, and identity across Ireland and the wider Celtic world.