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Andrew Brolly, Fractional CFO Service
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Twelve months ago, tariff uncertainty dominated the export conversation for many Irish food and agribusinesses.
This year, concern about tariffs has fallen from 38% to 23%, while 19% cited margin pressure on international sales. Some of that reflects a calmer trading environment, but businesses have also adapted. What has not changed is the difficulty of getting into a market in the first place.
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With tariff concerns less prominent, the main barrier is the same as it was twelve months ago. 43% of Irish food and agribusinesses say market entry and distribution are the key barriers to export, broadly unchanged on 2025.
Behind it, over a third say they lack market knowledge and access, and the same proportion struggle with logistics and supply chain.
The survey suggests that the more persistent barriers are operational and commercial. For many businesses the challenge is capability, i.e. identifying the right route to market, finding a buyer or distributor, moving the product efficiently and pricing it at a sustainable margin.
What does market entry cost?
Most of the costs of entering a new market arise before the first sale is made.
In the survey, 34% cite logistics and supply chain as the biggest challenges, while 27% identify their value proposition and marketing in new markets as a barrier.
Successful market entry usually requires preparation across several disciplines including financial modelling, distributor selection, logistics, tax and compliance. Those decisions are easier to make before capital is committed than after a product has entered the market.
Costs to plan for:
Route to customer
Identifying potential distributors, carrying out due diligence and assessing whether they can build your business in the market.
Physical
Freight, storage, distribution, returns, spoiled product, quality assurance in transit.
Compliance
Labelling, registrations, and market-specific rules.
Marketing
The spend required to make an Irish offering stand out.
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Exporters are deepening their commitment
Existing exporters appear to be increasing their exposure to international markets. The share of exporters earning more than half of their turnover abroad has risen from 24% to 32%. The proportion of businesses exporting at all (61%) is broadly flat, so what we are seeing is existing exporters deepening their reach rather than a wave of new entrants.
86% of exporters maintained or grew their international sales over the last twelve months and owners report that export margins have held up with them. Set against weaker reported domestic margins, that suggests international markets are providing a useful source of resilience for some businesses.
Too few businesses are taking the first step
Only 24% of businesses that do not currently export are planning to do so. That is effectively unchanged on last year and it means roughly three in four non-exporters have no plan to begin.
For a business that has never exported, the first step is the hardest one to cost, and often the most daunting. Distribution, tax, logistics, regulation and working capital all have to be worked through before a single order is secured, and the whole thing can quickly look very complex.
What businesses should do next
The fall in concern about tariffs shows that businesses can adjust when a risk becomes clear and immediate. Market entry and distribution now require the same level of attention. They need to be treated as a defined investment decision, with the costs, risks and expected return understood in advance.
Existing exporters should continue to test whether their route to customer is delivering the margin it should. Businesses considering their first international market need a different starting point, exporting is not simply an extension of Irish sales.
Consider sitting down with your advisors and breaking down the requirements. Pick one market, understand the route to the customer, cost it properly and pressure-test the margin before committing capital. Businesses that do that work upfront are in a far stronger position to build a sustainable export business.