Food sector performing ‘poorly’ for investors

THE Irish food industry may need a structural overhaul if it is to remain competitive, a leading analyst has warned.

Goodbody Stockbrokers’ food analyst Joe Gill has a downbeat assessment of the sector, saying: “Contrary to conventional wisdom, the Irish food industry is not performing well, using well-known financial metrics.

“It also compares poorly to other sectors in terms of creating equity value for its investors.”

Mr Gill’s opinions are expressed in a paper entitled ‘Irish food in the next century – challenges and opportunities’, in which he explores the structure of the Irish food industry and assesses the policies and actions required to advance the sector materially.

“The Irish food industry is a unique combination of indigenous private companies, stockmarket listed plcs, and farmer-controlled co-operatives that have shaped a sector accounting for almost 8pc of Ireland’s economy,” Mr Gill explains.

“Having contributed significantly to the progression of the Irish Republic over the past century, it is apt to debate how this key strategic sector should develop over coming decades.”

His paper argues that a more radical agenda is required to create an industry that supports and encourages a group of global leaders in food that are led and managed from an Irish base.

Mt Gill will discuss the structure of the Irish food industry and its suitability for the challenges that lie ahead at the fourth annual Butter Museum Lecture in UCC on Thursday evening.

The lecture will ask if a radical structural overhaul of the Irish food industry is required to grasp the possibilities that arise over the next century.

Drawing from the lessons of the past, and examining forecast mega-trends in food, the former ICOS chief economist will argue that the need for ambition and entrepreneurship in the Irish food industry has never been greater.