“However, the rise in demand from retail in March / April 2020 has fostered an assumption that the food and drink industry is riding the crest of a wave at a time when other sectors are struggling. In reality, producers are entering a period of great difficulty. Foodservice – restaurants, hotels, cafes, pubs, canteens – represented some 30% of the market for the industry. That market has all but disappeared, and any increase in demand from retail does not come close to making up the difference. It has been a seismic shock for the industry and inevitably manufacturers, many of them SMEs, now face serious stock and cashflow difficulties.
“The government needs to step up to the plate and support producers before it is too late. Support in the form of grants should be given to allow firms to invest further in automation, advanced manufacturing, innovation and skills. A capital expenditure support scheme is urgently needed to future proof the industry and should be an immediate priority.
“Food and drink is the biggest manufacturing industry in Northern Ireland – accounting for 100,000 jobs locally and feeding some 10million people across the UK, Ireland and Europe. For Northern Ireland to recover from the economic consequences of Covid-19 – and be able to face the future challenges of Brexit and recession – it needs a strong food and drink industry. That requires action now.”