Michael Jacob, Food & Beverages Division, Bord Bia – Irish Food Board
On the 29th June, Bord Bia held a half day seminar outlining the main findings of the Brexit Barometer and discussed the key pressure points identified. There were over 100 attendees at the event where Bord Bia CEO Tara McCarthy outlined the key findings of the Barometer for the Irish Food, Drink and Horticulture industry. Route to Market, Supply Chain Management, Customs and Trade and Currency were highlighted as key issues for Irish suppliers.
There was degree of optimism amongst the companies who completed the barometer with 80% stating that there are opportunities to grow their position within the UK market. However, many do not have a set strategy to realise this opportunities as over 60% of companies do not have a marketing strategy tailored for the UK market. Supply chain presents many potential risks for Irish companies, especially in industries such as mushrooms which have a short shelf life.
Implementation of new customs controls and potential tariffs are key concerns for Irish companies post Brexit. Customs compliance is a key, and in many cases a new, challenge for the companies who completed the barometer. Due to its proximity and distribution links, 69% of companies ship EU purchases through the UK. If new tariffs and customs barriers are imposed the movement of these goods will be affected. The unprecedented level of decline in the value of sterling since Brexit has affected companies across all sectors. Many companies have hedging and other currency risk management principles in place but the volatility of sterling still makes currency a key pressure point for the industry moving forward.
The report also goes through the top takeaways by sector and can be accessed via this link. At the launch event, Catherine Day gave a political perspective on the EU-UK negotiations and the implications for Irish Food and Drink industry. Minister Michael Creed TD also outlined the effects Brexit will have on Irish policy.
Dean Attwell, CEO & Co-Founder of Oakland International Ltd, gave a supply chain partner perspective post-Brexit and James Walton from IGD presented on the implications for UK grocery. The event concluded with an industry panel discussion and presentations and videos from the event will be posted here.