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Business performance & outlook

Business performance and outlook from our 2026 Food & Agribusiness Report

79% of agrifood businesses are planning to grow over the next 12 months. 58% grew revenue over the past 12 months, although only 38% grew net profit as margins are squeezed. Optimism has fallen from last year's high, with 65% of businesses optimistic about the next 12 months.

Input costs increased for 91% of businesses over the past 12 months. Despite this, businesses are adapting with almost six in ten reporting an increase in revenue. Converting revenue into profit remains a challenge, with fewer than four in ten businesses achieving a net profit increase.

The story first appeared in our 2026 Food & Agribusiness Report

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A donut chart shows 58% increased, 25% stayed the same, and 17% decreased, with respective colors dark blue, teal, and light green.

Revenue

Doughnut chart: 91% increased, 5% stayed the same, 4% decreased.

Input costs

A donut chart showing 38% increased, 27% stayed the same, and 35% decreased, with corresponding color key.

Net profit

A donut chart shows 65% optimistic, 16% neutral, and 19% pessimistic attitudes, with corresponding colored segments and a legend.

Optimism

Challenges

The top three challenges that businesses are facing are consistent with last year. However, cost pressure has intensified, with the proportion of businesses citing rising costs as a challenge increasing by 16 percentage points to 76%. Government policy uncertainty and staffing challenges are joint second at 43%.

Opportunities

Launching new products or services remains the leading growth opportunity, cited by 61% of businesses, up a further four percentage points this year. Increasing customer demand (35%) and exporting to new markets (31%) rank second and third.

Business red flags

Business red flags have eased. Firefighting remains the most common issue, reported by 25% of businesses. 22% have concerns around stock levels followed by short- or medium-term cashflow issues (21%).

Future plans

Almost eight in ten businesses (79%) intend to grow over the next 12 months. Most expect that growth to be measured rather than transformational, with 60% planning to grow marginally and 19% significantly.

36% of businesses have delayed investment due to uncertainty. Despite the increased costs being experienced, fewer businesses are holding back on investment than a year ago.

Oisin Gryson

Talk to Oisin Gryson

Senior Food & AgriBusiness Executive01 4551036oisingryson@ifac.ieLinkedin
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