Bord Bia Says Many Irish Food And Drink Companies Are Facing Higher Costs When Selling To The UK Due To Brexit, But Are Optimistic About Their Prospects Nevertheless
As reported by The Irish Examiner, Bord Bia has said that many Irish food and drink groups are facing higher costs when selling to the UK as a result of Brexit, but despite the increase in costs, a Bord Bia survey found that many of the firms remain positive about the future.
Bord Bia carried out a survey of 111 firms covering a large chunk of the industry's exporting companies underlines that overall food and drink exports fell only slightly to €13bn last year despite Brexit.
According to the government agency, "having overcome the challenges of 2020, much of the sector feels now more prepared and confident for the period ahead".
Many firms took the direct route to continental Europe, forgoing the more complicated land bridge, while bigger companies looked at Asia to diversify.
A key part of the Irish Government's strategy since the 2016 Brexit referendum was to encourage firms to look beyond Britain.
However, the Bord Bia survey showed the British market still remains highly significant.
As a result of what it described as "the trading environment with the UK and the implications of Brexit", almost half of all firms posted a decline in the value of their sales since 2016.
Added to that, "a stark 90% of the Irish businesses exporting to Britain report an increase in the costs", highlighting the damage done as a result of the UK leaving Europe.
"This year's 'Readiness Radar' provides us with excellent up to date insight into the biggest risks facing the industry and will allow us to continue to tailor our supports for the sector,” said Tara McCarthy, chief executive, Bord Bia.
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