War in Ukraine, spiralling inflation and Brexit cited as reasons for 23 percentage point drop in outlookThe report from agri professional services firm Ifac highlights the change in outlook for farming businesses generally in the past 12 months as fears of an economic slowdown become realBusiness optimism in the Irish food and agriculture sector slumped to a five-year low, plummeting 23 percentage points following the onset of the war in Ukraine and the rise of inflation.
A report from agri professional services firm Ifac found 36 per cent of businesses have experienced a 21 per cent or higher increase in input costs. In addition, the cost of stock management has risen dramatically because of disrupted supply chains. Salary expectations are increasingly becoming a barrier, with two-thirds of businesses finding it difficult to recruit the right people.
“This is a tough time for Irish food and agribusiness SMEs following a global pandemic,” Ifac head of food and agribusiness David Leydon said. “One of the biggest challenges is rising input costs and for many to maintain margins this means implementing challenging price increases.” The report highlights the change in outlook for businesses generally in the past 12 months as fears of an economic slowdown become real. A similar report in 2021 showed business optimism at a four-year high.