A new report published on Wednesday by ifac, reveals that 90% of Irish food companies are now actively taking climate action, positioning sustainability as a central focus alongside global expansion efforts.
Ifac’s 2024 Food and Agribusiness Report (7th in the series) ‘Getting your business fit for export’ is Ireland’s only annual temperature check of food and agribusiness SMEs and contains insights from industry leaders in over 120 food and agribusinesses.
90% of respondents are taking some form of climate action and companies reported a variety of sustainability initiatives. The number one area reported was reducing energy usage, closely followed by waste reduction. This year sees an increased focus on waste compared to last year’s report, where only 46% of respondents listed ‘managing waste and byproducts’ as an initiative being undertaken to tackle climate change.
Sustainability is becoming increasingly important for many Irish businesses who may be encountering more sustainability questions from customers, suppliers, funders and regulators. 44% of food and agribusinesses surveyed stated that they were receiving requests for sustainability information from customers. These same SMEs are continuing to face a myriad of pressures, from rising costs and climate risks to increased competition and skills shortages.
Some of the key findings include: 81% of the business owners surveyed reported an increase in costs amid a push for global growth; 38% face short to medium-term cashflow challenges; 36% of companies surveyed stated that they have set sustainability targets, with a further 39% said that they are in the process of setting targets. While 72% of those surveyed are not measuring emissions.
INTERNATIONAL EXPANSION ‘HIGH ON THE PRIORITY LIST’
Speaking on the importance of Irish food and agribusinesses expanding internationally, David Leydon, Head of Agribusiness at ifac – Ireland’s farming, food and agribusiness specialist professional services firm – said: “The agrifood sector is poised for further growth and the biggest takeaway from this year’s findings is that the focus on expanding internationally is high on the priority list for Irish agrifood SMEs. Exporting has always been important for our large food companies and co-operatives; some agri-engineering companies have also made a significant impact internationally. Already, two-thirds of respondents to our survey are exporting with many more eager to follow their lead. However, there is now a need to accelerate exporting efforts, especially for small and medium companies.”
