FDII Says that the Right Policies will Ensure Food Sector will Deliver €12bn Exports by 2020

Food and Drink Industry Ireland (FDII), the IBEC group that represents the food and beverage sector, today published a new report 'Sharing the Harvest: The Food and Drink Sector Jobs Dividend', which provides in-depth analysis of the impact the agri-food sector has on the wider economy. 230,000 jobs are currently linked to the sector which spends €7.9bn in the Irish economy on goods and services every year. The report suggests that 30,000 new jobs could be created if the sector achieves the ambitious export growth targets set out in Food Harvest 2020.

The report says that to grow exports from €9bn to €12bn as set out in Food Harvest 2020, the sector needs, among other things financing facilities to support expansion and the development of new companies in the sector, and reduced business costs. If the Government puts the right policies in place, this important sector, more so than any other in manufacturing, will drive growth in the wider economy.

Commenting on the report, FDII Director Paul Kelly said: "Ireland's food and drink sector is deeply embedded in the Irish economy, which means that an increased focus on food will drive growth in the wider economy as well as in the sector itself. The food sector spends €7.9bn, or 76% of its total expenditure, on Irish goods and services. This represents a significantly higher contribution to the domestic economy than in any other area of manufacturing. If we increase exports to €12bn, the sector will potentially deliver in the region of 30,000 jobs across the whole economy due to the proportionate increase in spend by the sector.

"The sector's exports have already rebounded from lows experienced in 2007 and reached a new high last year. However, continued export growth and the accompanying job creation are only possible if public policy is aligned with the needs of the sector. Of particular importance are measures to maintain the competitiveness of the sector including:

• Ensuring a sustainable supply of cost competitive raw materials
• Influencing the redevelopment of the EU state aid regime for the post 2013 period
• Putting the proposed grocery code in place immediately after primary legislation is enacted
• Adopting a genuine whole of society approach to nutrition and obesity based on scientific evidence rather than ineffective polices such as advertising restrictions and discriminatory taxes

Source: Food and Drink Industry Ireland - FDII Says that the Right Policies will Ensure Food Sector will Deliver €12bn Exports by 2020