A major new report which examines the global food and beverage sector was launched yesterday in University College Cork (UCC).

The report, which was prepared by UCC, AIB, Goodbody, KPMG and A&L Goodbody includes data collected from a recent survey of food and beverage executives and from recent consumer trends data.

Understandably, the global food and beverage sector faces intense uncertainty from tariff threats, weak consumer sentiment amid inflation and cost-of-living pressures.

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The report suggests regulatory shifts in the EU and US, input price volatility, and labour shortages linked to immigration policies also contribute to the instability.

However, despite these challenges, most Irish food and beverage executives remain optimistic.

Interestingly, the report suggests food inflation persists, driving consumers to prioritise price and quality over origin or sustainability. The report states the willingness to pay a premium for sustainability is limited.

These results challenge the very basis of the EU fundamentals around food quality and safety, and indeed national priority programmes such as quality assurance schemes and organics.

UCC Professor Thia Hennessy said success for Irish food businesses will depend on balancing cost efficiency with targeted investment.

Balancing act

The very same could be said for Irish farms – farmers are balancing the cost of increased regulation with the cost of reducing output driven by local policy.

Last week’s announcements in Northern Ireland highlight this once again.

Why would a northern farmer invest if they may be forced to downscale by 50% in the next six months?

The same holds true for farmers south of the border – why would they invest if Nitrates could mean downscaling next year? The quicker we see a longer-term, multi-year vision for food produced sustainably in Ireland the better.