The competitiveness of the food and drinks sector “is under sustained pressure”, according to Paul Kelly, director of Food Drink Ireland (FDI).

He made these comments today (May 29) while launching the group’s latest report , ‘Competitive Food and Drink: Policy priorities of the food and drink sector 2026’,

In the report, FDI - the Ibec group representing the food and drink sector - highlighted “the importance of government policy in ensuring the competitiveness of Ireland’s largest indigenous manufacturing sector amidst growing challenges”.

Kelly said: "The economic contribution of Ireland’s food and drink sector remains unparalleled within indigenous industry.

“However, the competitiveness of the sector is under sustained pressure.”

According to the FDI director, 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".

“Geopolitical volatility, shifting US trade policy, and the cumulative impact of new EU measures on packaging, sustainability and supply chains add further uncertainty," Kelly said.

Policy priorities

The report outlines numerous policy priorities for the following areas:

Competitiveness; including the establishment of “a new strategic investment mechanism to strengthen Ireland’s food and drink manufacturing base, underpin competitiveness, and support the sector’s transition to low-carbon, innovative production”;
Sustainability; including “financing supports to incentivise investments in carbon abatement measures, more sustainable packaging solutions and green transport initiatives”;
Skills and human capital; including an increase in the core funding for Skillnet business networks by €50 million over three years “to meet verified industry demand”;
Innovation, including streamlining and simplifying “innovation supports" for small businesses and enhancing the Innovation Voucher scheme;
Food safety and nutrition; including ensuring “adequate resourcing" for the Food Safety Authority of Ireland;
EU and international; including "expediating" a comprehensive EUUK Sanitary and Phytosanitary agreement for food and drink imports and exports, and protecting "our all-island cross-border supply chains”.

Kelly said: “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.”