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Eighty-nine per cent of food business are concerned there will be a shortage of skilled workers after Brexit, an IBEC survey has revealed. An analysis of food and drink company responses to a recent survey found contingency planning is well under way among Irish food and drink companies.
There is also a greater focus on Brexit in the food and drink sector in comparison with other sectors. More than half of food and drink businesses had a hedging or pricing arrangement in place, compared with 35% of other businesses.
Planning for Brexit
Food and drink businesses are focusing ways to offset the potential difficulties of Brexit, the survey shows. Focusing on new markets outside the UK is the primary strategy, with 50% of companies looking into new markets for their products.
Diversifying product ranges, finding other transit routes outside the UK and sourcing materials differently were the other main contingency measures put forward.
Concerns
Half of the food and drink businesses surveyed said Brexit will have a negative impact on the value of export sales – compared to 28% of other businesses. Businesses also envision an increase in the need for skilled workers and new employment laws surrounding customs and certification procedures.
According to the survey the biggest impacts Brexit will have on the food and drink industry will be due to the cost of complying with customs procedures, exchange rate movements and the value and volume of export sales.
Solutions
Training existing staff as well as recruitment within Ireland are seen to be possible ways of managing the potential shortages in logistics, distribution and supply chain management skills.
Paul Kelly, director of the FDI, has called for policies to support and protect Ireland’s food and drink sector: “{The] Government must implement policies to help mitigate the risks facing the sector by addressing cost competitiveness in the economy and helping companies innovate and improve productivity.”
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