Food and Drink Industry Ireland (FDII), a group that represents the Irish food sector, has warned that as many as 7,500 jobs could be lost in the Irish agrifood industry as a result of Brexit, unless the government takes a proactive approach to addressing trade concerns.
The job losses would occur if sterling stays at its current exchange rate of 90p to the euro, and could be more significant if near-parity occurs.
Speaking at the All-Island Civic Dialogue on Brexit at the Royal Hospital Kilmainham, Dublin, FDII director Paul Kelly said, "Brexit is the biggest and most immediate challenge facing the sector. While the outcome of exit negotiations will have a far-reaching impact on our trading relationship with the UK, the collapse in sterling is already costing jobs.
"The Irish agrifood sector is uniquely vulnerable, due to the deeply entwined business and trade relations with the UK. The two-way-flow trade flow between Ireland and the UK, particularly north and south, involves raw materials, ingredients and finished products, and it takes place internally within companies, as well as between businesses.
"The priority for the food sector is to maintain full unfettered access to the UK market. UK membership of the EU single market is much more preferable than a bilateral trade agreement."
© 2016 European Supermarket Magazine – your source for the latest retail news. Article by Stephen Wynne-Jones. To subscribe to ESM: The European Supermarket Magazine, click here.
