With Ireland‘s food and drink sector facing mounting pressure from rising costs, labour shortages and growing regulatory demands, driving sector competitiveness should be a central focus of government policy, Food Drink Ireland (FDI) has said.
The group, which is part of Ibec, said in its latest policy document, Competitive Food and Drink: Policy Priorities of the Food and Drink Sector 2026, that the government has a key role to play in ensuring the future competitiveness of Ireland’s largest domestic manufacturing sector.
‘Unparalleled contribution’
“The economic contribution of Ireland’s food and drink sector remains unparalleled within indigenous industry,” commented FDI director Paul Kelly. “With exports reaching €19 billion in 2025, the sector continues to demonstrate resilience in a highly volatile global trading environment. However, the competitiveness of the sector is under sustained pressure.
“Ongoing inflation in energy, raw materials, transport and compliance costs, combined with increasing regulatory complexity at EU level, continues to erode margins in a sector characterised by tight profitability. Labour costs also impact on business viability, and companies are also facing persistent challenges around attraction, retention and housing availability for employees.
“Geopolitical volatility, shifting US trade policy, and the cumulative impact of new EU measures on packaging, sustainability and supply chains add further uncertainty.”
Food Drink Ireland highlighted a range of policy priorities aimed at strengthening competitiveness, including sustainability, skills development, innovation, food safety and nutrition, and support for export markets.
‘Strategic opportunity’
Kelly added Ireland’s Presidency of the Council of the European Union in the second half of 2026 presents a significant opportunity to advance policies that support both the domestic industry and Europe’s wider food system.
“Ireland’s Presidency of the Council of the European Union in the second half of this year presents a strategic opportunity to strengthen the competitiveness of this critical sector,” he said. “The Presidency provides a platform for Ireland to champion policies that reinforce Europe’s food security, trade leadership and industrial resilience, while safeguarding the long-term viability of indigenous food and drink enterprises at home.” Read more here.
