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OVER 80 per cent of Kerry food and agribusiness SME’s do not have a clear succession plan in place according to new research by food and agribusiness professional services firm ifac.
One of the key findings of the Munster wide survey is that 82 per cent of food and agribusiness SME’s do not have a clear succession plan in place.
From a longer term planning perspective clear succession plans are rare and 40 per cent of businesses are open to selling in the next five years which is higher than might be expected in the sector.
The research also suggests that this is mainly due to lack of thought, business viability and a lack of interest from next generation.
Four in 10 medium sized companies are planning to hire next year, however, 62 per cent of employers in the region say it is somewhat or very difficult to find the right people to run the business.
Another area for concern is the growing costs for food and agribusiness SMEs. Cost pressure is evident across the industry with 86 per cent of medium sized businesses experiencing increases in business running costs averaging at five per cent
Only three per cent of companies saw a decrease in costs.
“This new piece of joint research by ifac and Amárach will be of significant interest to food and agri businesses based in Kerry. These are challenging times for businesses in this sector but there is optimism about the future and confidence to grow,” said ifac Kerry Office Partner Michael Brosnan.
“At ifac our team based in Kerry are working with the Food and AgriBusiness national team, to help businesses in the region reach their full potential. ifac is a committed partner of the farming, food and related sectors and we will continue to provide the highest level of support to businesses in Kerry,” Mr Brosnan told The Kerryman.