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Exclusive ifac Food & Agribusiness Report 2026: optimism slips as costs hit nine-year high but 79% still plan to grow
A new report published by ifac, finds that while Irish food and agribusiness leaders remain committed to growth, optimism has declined and cost pressures have reached their highest level in nine years. The 2026 Food and Agribusiness Report, now in its ninth edition and themed Ready or Not, is Ireland's only dedicated sentiment tracker for the sector. Its findings indicate that change, particularly in relation to AI adoption, supply-chain risk and export exposure, is progressing faster than the structures many businesses have in place to manage it.
Key points from the report
Optimism
65% of food and agribusinesses are optimistic about their performance over the coming 12 months, down from 80% last year.
Rising costs
91% report an increase in costs this year, the highest level recorded in nine editions of the report.
Growth ambition holds
Despite the pressure, 79% intend to grow the business over the next 12 months, and 38% plan to employ more people.
Succession gap
75% have no clear succession or leadership transition plan in place, a figure that has remained stubbornly high for nine years running.
AI outpacing governance
AI use has jumped from 21% three years ago to 80% today, yet 48% have nothing in place to govern its use and 89% have no designated person or team responsible for it.
Supply chain exposed
49% experienced a significant supply-chain disruption in the past year, yet 89% have no formal supplier risk monitoring or scenario planning.
Exporters going deeper
Among existing exporters, the share earning more than half their turnover internationally rose from 24% to 32%.
New products growth
63% of food manufacturers cite launching new products as their top growth opportunity.
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Speaking on the findings, David Leydon, our Group Head of Growth and Agrifood Consulting, said:"Businesses are less confident about the wider environment than they were twelve months ago, but they continue to plan for growth. The challenge now is achieving profitable growth rather than growth at any cost.
Cost increases have affected nine out of ten companies in the past year, the highest level recorded in nine years of the Report. With people, energy, compliance and transport costs all rising, owners need a clear understanding of where margin is being made, by market, product, customer and channel. At the same time, AI adoption has advanced ahead of governance, and supply-chain disruption has highlighted how few businesses have formal risk monitoring in place. Across almost every theme in this year’s report, the message is consistent, change is outpacing the structures businesses have in place to manage it."
Download our 2026 Food & Agribusiness Report
Actionable insights on optimism, investment, AI, sustainability, exports and people, straight from Ireland’s leading agri sentiment tracker.
AI adoption outpacing governance
AI use in the sector has increased significantly, rising from 21% three years ago to 80% today. However, oversight has not kept pace: 48% of businesses have no governance in place for employees' use of AI, and 89% have no designated person or team responsible for it. Nearly half (46%) cite a lack of internal expertise as the principal barrier to adoption.
Succession: a persistent weakness
Only 25% of business owners have a clear succession or leadership transition plan in place, with a further 39% having begun the process, meaning three in four businesses still do not have a completed plan. This figure has remained largely unchanged across nine editions of the report. Notably, 68% would still recommend the agrifood sector to the next generation.
Supply chain: risk exposure remains high
Nearly half of businesses (49%) experienced a significant supply-chain disruption over the past year, yet 89% have no formal supplier risk monitoring or scenario planning in place. Many have responded by holding additional stock, which offers some protection but ties up cash and increases carrying costs.
Exporting: existing exporters deepening international activity
61% of businesses currently export, and among these, the proportion generating more than half their turnover internationally rose from 24% to 32% this year. New product development remains the leading growth opportunity, with 63% of food manufacturers identifying it as their top priority for the year ahead.
Margin and financial visibility: a widening gap
58% of businesses increased revenue over the past 12 months, but only 38% increased net profit, indicating that rising costs are eroding margin. Financial visibility also remains a concern, while half of businesses receive monthly management accounts, one in four still receive formal figures only annually.
People and organisational readiness
38% of businesses plan to increase headcount over the next 12 months, although skills shortages, salary expectations and rising employment costs remain significant issues. Broader organisational preparedness is also a concern, 58% have no crisis communications plan in place, while sustainability activity, though still strong at 35% taking more action than last year, continues despite reduced formal reporting pressure.