Brexit
This report uncovers how Irish SMEs feel about Brexit and the uncertainty it brings. we discuss the key concerns with Ifac experts weighing in and advising business owners for the coming year. See pages 14-17 of the report for more.
Are Irish SMEs worried about Brexit?
We found that most Irish food and agri businesses are not worried about Brexit. This may be due to the majority of trade being conducted within the Republic of Ireland.
Turnover has increased
It has been a positive year in the industry as turnover has increased for over half of business owners.
Where are sales coming from?
With 49% of Irish food and agri business owners admitting to not being worried at all about Brexit and a further 30% being neither worried nor not worried, we examined where sales were coming from.
Costs have also increased
However, costs have also increased particularly for larger companies. On average, food and agribusiness SMEs have experienced an increase in costs of 5% in the past 12 months.
Recruiting for the future
Medium sized companies are the most likely to recruit in the coming year with 41% planning to do so. Additionally, 28% of all businesses surveyed have plans to hire in the next 12 months
Do Irish SMEs conduct business online?
69% of food and agribusinesses are not currently conducting business online, with only 11% planning to do so in the future.
Investment in the future
Research and development can pave the way for cost savings and increased efficiencies. Despite the many benefits, 32% don’t invest in R&D.
What does this mean for the future?
Despite the rising costs, 74% of food and agribusinesses are optimistic for the coming year.
Who have we surveyed?
200 SMEs in Ireland were surveyed for this report….
Business Size
Our researchers spoke to owners of micro, small and medium-sized businesses in the Food and AgriBusiness sector. Micro and small businesses dominate the sector, accounting for 85% of respondents.
Are Irish SMEs worried about Brexit?
We found that most Irish food and agri businesses are not worried about Brexit. This may be due to the majority of trade being conducted withing the Republic of Ireland.
Where are sales coming from?
With 49% of Irish food and agri business owners admitting to not being worried at all about Brexit and a further 30% being neither worried nor not worried, we examined where sales were coming from. The confidence in the face of the uncertainty of Brexit may come from 84% of this sector’s sales being conducted in the Republic of Ireland, with Britain only accounting for 8%.
Increased Turnover
Increased costs are offsetting margin improvements from the last year as margins increased for 23% of businesses.
Do Irish SMEs conduct business online?
69% of food and agribusinesses are not currently conducting business online, with only 11% planning to do so in the future. This could be related to only 28% of businesses in this sector reporting sufficient broadband connectivity.
Investment in the future
Research and development can pave the way for cost savings and increased efficiencies. Despite the many benefits, 32% don’t invest in R&D.
Business Size
Our researchers spoke to owners of micro, small and medium-sized businesses in the Food and AgriBusiness sector. Micro and small businesses dominate the sector, accounting for 85% of respondents.
Where are they based?
Leinster houses the most food and agribusiness SMEs with 44% of the overall sector.
Food vs. AgriBusiness
Food SMEs proved more popular than AgriBusiness with them claiming 64% of the overall sector.
Download the 2018 Ifac Food & AgriBusiness Report
This report is based on in-depth research conducted by Amarach Research. The findings are clear and reveal the current sentiment of Ireland's Food and AgriBusiness sectors straight from the industry leaders.
Minister Heather Humphreys launches the ifac 2018 Food and AgriBusiness Report
Today ifac, the farming, food, and agribusiness professional services firm, issued the results of their sentiment tracker research on the Irish food and agribusiness SME sector, conducted by Amárach Research.
49% of companies are not concerned about Brexit and 63% of all employers are saying its somewhat or very difficult to attract talent
Research shows 83% of Irish Food and Agribusiness SME’s Do Not Have a Clear Succession Plan in Place
Rural broadband is still an issue for businesses, only 7% of companies surveyed do a significant level of trading online
Download the Top 10 Takeaways
Download the key findings of the ifac 2018 Food & AgriBusiness Report covering Brexit, cost and margin pressure, social media, recruitment challenges and optimism levels. #ifacReport
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While optimism levels are high for the coming 12 months, our report highlights a number of issues which are concerning. Brexit is looming but many businesses (49%) are not planning for the implications of Brexit, costs are increasing right across the board which is impacting on margin while recruiting the right team to grow food and agribusinesses is proving difficult. However, this is tempered by a buoyant economy in Ireland where 84% of their sales are derived.
David Leydon, Head of Food & AgriBusiness
