Speaking at the Agri Food Forum, John Whelan CEO of the Irish Exporters Association (IEA), outlined the issues for the food export sector as follows:

“The Agri-Food exporters are in the middle of a major market crisis with currency volatility, slowing consumer spending, and reduced access to credit all impacting. €600 million was wiped off the value of Food Exports last year, a further €800 million has been lost this year to date. This is an 18% fall in the value of exports over a two year period, and represents the worst periods of continuous deterioration in market conditions for food exporters for several decades”.

He went on to say:

“Sterling depreciation of 20% over the past 18 months, is not a normal trading issue that exporters can be expected to shoulder on their own. Deterioration in the economies of our target markets has resulted in severe tightening in credit conditions. Hence, in a recent survey exporters put Finance and cash flow as their principle challenge.’’

He further stated we need urgent action to tackle the immediate crisis in the sector, and we need a new deal to tackle the long term issues to prevent continued decline in the sector.

On the immediate actions, the IEA believe Government have a key role to play, but must act immediately and decisively to support the sector with:

>Providing an Export Credit scheme supported by the State- something that has been bandied about by the Government for 12 months now, but without a decision.

>Re- opening the Employment Subsidy scheme immediately with new rules offering support to viable but vulnerable exporters above minimum levels.

On the longer Term a new Deal is required, according to the IEA to dramatically reduce our export dependence on the Sterling area, and drive up our exports in the eurozone and other international markets.

John Whelan concluded by saying:

“This type of transition will require a strong partnership effort with the food exporters, the farmers, the state agencies and Government all buying into a new vision for the sector.”

END