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44% of Irish food and agribusinesses have delayed investment due to uncertainty
Almost half of Irish food and Agribusinesses have delayed investment due to uncertainty, despite record optimism in the sector.
The 2025 Food and Agribusiness Report, which is now in its 8th year, is based on the views of food and agribusiness leaders and is Ireland’s only dedicated sentiment tracker for the sector.
The report is published by ifac, a team of accountants and financial advisors providing working with the farming, food and agribusiness community.
Speaking on the findings, David Leydon, Head of Growth and Agrifood Consulting at ifac, said: “Even though business leaders are feeling positive, nearly half of them are holding back on investing because they are uncertain about the future.
“Our report shows that the cost of doing business is a central concern and a persistent pain point – 80% of businesses cite increasing cost pressures,” said Mr Leydon.
“For others, exploring opportunities to differentiate through sustainable practices is key. Sustainability has evolved from a buzzword to a priority. Back in 2019, just 43% of companies were using sustainable packaging.
“Fast forward to 2025, and 83% of respondents report receiving requests for sustainability data from customers, this emphasises how crucial it is to have expert advice to address the challenges identified in our report, such as rising costs, foreign exchange fluctuations, sustainability, and the rapid adoption of AI.”
Optimism, investment, costs, AI, and succession are the main themes in this year’s research by Ireland’s farming, food, and agri-business specialist professional service firm.
A key area for concern highlighted in the report is that the majority of business owners have no succession or leadership plan.
Commenting on the report launch John Donoghue, CEO at ifac said the main drivers of growth include international market expansion, but he added that whilst optimism for the future is high, succession planning remains a chronic weak spot.
“77% of business owners have no clear succession plan; a figure largely unchanged in over five years,” he noted.
“Importantly, our report underscores the critical need for succession planning to safeguard the future contribution of this sector to the sustainability of our island economy,” said Mr Donoghue.
In terms of AI adoption, the report shows 77% of business leaders are using tools such as ChatGPT or Microsoft Co-Pilot, but only 27% of them are confident they understand the data security and privacy risks in navigating AI.
According to the research marketing, sales and advertising are now the biggest uses of AI in the sector, in 2024, 44% of businesses were applying AI here while in 2025, that figure rose to 53%.
The study also shows exports remain strong with 9 in 10 businesses maintaining or growing international sales in the past 12 months, with the UK and US remaining key markets
In 2024, the value of Irish agrifood exports increased by 5% to €17 billion (Bord Bia), maintaining the upward trajectory seen in previous years.
However, 66% of those exporting to the US cited tariffs as a top challenge, while 70% overall face foreign exchange risk by not invoicing in euro, thus exposing them to currency volatility.
Article Source – 44% of Irish food and agribusinesses have delayed investment due to uncertainty
44% of Irish food and agribusinesses have delayed investment due to uncertainty
Almost half of Irish food and Agribusinesses have delayed investment due to uncertainty, despite record optimism in the sector.
The 2025 Food and Agribusiness Report, which is now in its 8th year, is based on the views of food and agribusiness leaders and is Ireland’s only dedicated sentiment tracker for the sector.
The report is published by ifac, a team of accountants and financial advisors providing working with the farming, food and agribusiness community.
Speaking on the findings, David Leydon, Head of Growth and Agrifood Consulting at ifac, said: “Even though business leaders are feeling positive, nearly half of them are holding back on investing because they are uncertain about the future.
“Our report shows that the cost of doing business is a central concern and a persistent pain point – 80% of businesses cite increasing cost pressures,” said Mr Leydon.
“For others, exploring opportunities to differentiate through sustainable practices is key. Sustainability has evolved from a buzzword to a priority. Back in 2019, just 43% of companies were using sustainable packaging.
“Fast forward to 2025, and 83% of respondents report receiving requests for sustainability data from customers, this emphasises how crucial it is to have expert advice to address the challenges identified in our report, such as rising costs, foreign exchange fluctuations, sustainability, and the rapid adoption of AI.”
Optimism, investment, costs, AI, and succession are the main themes in this year’s research by Ireland’s farming, food, and agri-business specialist professional service firm.
A key area for concern highlighted in the report is that the majority of business owners have no succession or leadership plan.
Commenting on the report launch John Donoghue, CEO at ifac said the main drivers of growth include international market expansion, but he added that whilst optimism for the future is high, succession planning remains a chronic weak spot.
“77% of business owners have no clear succession plan; a figure largely unchanged in over five years,” he noted.
“Importantly, our report underscores the critical need for succession planning to safeguard the future contribution of this sector to the sustainability of our island economy,” said Mr Donoghue.
In terms of AI adoption, the report shows 77% of business leaders are using tools such as ChatGPT or Microsoft Co-Pilot, but only 27% of them are confident they understand the data security and privacy risks in navigating AI.
According to the research marketing, sales and advertising are now the biggest uses of AI in the sector, in 2024, 44% of businesses were applying AI here while in 2025, that figure rose to 53%.
The study also shows exports remain strong with 9 in 10 businesses maintaining or growing international sales in the past 12 months, with the UK and US remaining key markets
In 2024, the value of Irish agrifood exports increased by 5% to €17 billion (Bord Bia), maintaining the upward trajectory seen in previous years.
However, 66% of those exporting to the US cited tariffs as a top challenge, while 70% overall face foreign exchange risk by not invoicing in euro, thus exposing them to currency volatility.
Article Source – 44% of Irish food and agribusinesses have delayed investment due to uncertainty