Irish agri-food businesses are “poorly prepared” for managing the risks they face according to a new study compiled by risk management assessors Aon. The group said that, at best, just 50% of respondents had prepared for the two most significant risks identified, which were the impact of commodity price volatility and damage to reputation and brands.

Results from the Food, Agribusiness and Beverage Risk Insights Survey 2016, show that some 83% of Irish agri-food companies identified volatility in commodity prices as the greatest threat to their businesses.

The second greatest threat identified was the reputational damage from a food scare or product contamination. Economic uncertainty and currency fluctuations were identified by businesses as the third and fourth greatest risks.

Food and agribusiness practice leader at Aon and author of the report, Ciara Jackson, said: “The UK’s importance as an export destination for Irish produce means that the collapse in the value of sterling (making Irish exports more expensive) could particularly hurt lower-margin businesses where profits can quickly swing to losses.

“On a more positive note, this is a sector that is rapidly diversifying its export markets, moving up the value chain, and has proven extremely resilient in the face of past challenges.”