The Northern Ireland Food and Drink Association has called on the Government to provide financial support to food manufacturers, as the industry faces the challenge of rising costs and the loss of the foodservice market as a result of the Covid-19 pandemic.   Brian Irwin, Chair, Northern Ireland Food and Drink Association (NIFDA) said:   “Since the outbreak of the Covid-19 pandemic, the Northern Ireland food and drink industry has been working harder than ever to ensure that the nation is fed.


Companies have had to adapt to an evolving situation at rapid pace, responding to changes in demand and implementing social distancing measures. Within a short period of time, processes have been reimagined and reengineered and factories transformed – requiring a significant level of investment. The industry has demonstrated both its necessity and its ingenuity in these unprecedented times.

 

“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.”

 

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HM MPU1 - 4th June
Food Industry Calls For Government Support

The Northern Ireland Food and Drink Association has called on the Government to provide financial support to food manufacturers, as the industry faces the challenge of rising costs and the loss of the foodservice market as a result of the Covid-19 pandemic.