Small and medium sized food companies in Ireland are being hit with input cost rises of almost 30%, according to research from the representative group Love Irish Food.
Companies said costs were rising across the board, but the most significant hikes were being experienced in the areas of transportation, followed by raw materials and energy prices.
The increases in transport prices related mainly to the cost of exporting goods, but the cost of transporting within Ireland also increased.
Companies reported that their insurance costs have been rising, but to a lesser extent that the other categories.
Three quarters of companies surveyed by Love Irish Food attributed the cost increases to supply chain issues arising from the pandemic.
Other key contributing factors included Brexit, and increased worldwide demand.
Those cost increases are likely to make their way through to the prices that consumers pay for their food.
However, although consumer price inflation is running at in excess of 5% in Ireland, according to the latest CSO figures, food prices increased at a more muted rate of 0.6% year-on-year in October.
The bulk of the inflation in the wider economy is accounted for by rising energy and fuel prices.
Food companies are also concerned about the impact of labour shortages across the wider economy.
Four out of five SMEs surveyed by Love Irish Food said they anticipated challenges in recruiting qualified and trained staff next year.
A similar proportion expect that retaining current staff will be a challenge.
Many companies report that they are having to prioritise core ranges of goods in an effort to offset labour problems.
“The twin challenges of rising input costs and significant labour shortages have the potential to cause serious disruption on the food and drink industry in 2022,” Kieran Rumley, Executive Director of Love Irish Food said.
“The global pandemic and Brexit have made the issues facing the sector acute, with many now having to consider range rationalisation to offset labour challenges and decrease costs,” he added.
MEMBERSHIP of Love Irish Food, formed in 2009, is helping to safeguard the future of the country’s food and drink manufacturing sector.
The logo that its members display is equally helping consumers in a big way to make informed choices about buying Irish.
But the brands that came together to form the association are not just confined to the traditional food and beverage products whose raw materials come from the land where dairy and beef cattle graze on nutrient rich grass and crops grow on fertile tillage fields.
They also now include gluten free food products that are essential for the strict diets required by people with coeliac disease. Over 47,000 people in Ireland are believed to have the condition. Many more are undiagnosed.
There are an estimated three million Americans with the condition, which is triggered when they eat gluten, a protein found in wheat, barley, rye, and other grains.
A growing demand for gluten free products is therefore reflected in the increasing range of products to be seen in Irish supermarkets and on the menu offerings in hotels, restaurants and other food outlets.
Love Irish Food members such as Tadhg Long Catering (TLC), in Ballinhassig, Co Cork, which specialises in private, retail, corporate and sporting food services, have also responded to the demand by including gluten free food in their range of products and menu offerings.
The company is headed by Ballincollig born Tadhg Long, who has 25 years of experience in the catering and food service sector at home and abroad. Recently, the TLC chefs, working in their dedicated gluten kitchen, examined their recipes.
They discovered how adaptable their dishes were and that by making a few small tweaks the range would be accessible to people with coeliac disease and gluten intolerance. The dishes were sent for labora
testing. All were classified as gluten free.
With the logistics of the manufacturing base it was feasible to divide the workspace into two separate units. A dedicated gluten free kitchen was added. And that is where Tadhg, executive chef Dave Kelly and chef de partie Mark Howley now spend much of their time.
“People are really happy with the quality of the food, the taste of the food and in particular the vast range they can choose from. The desserts are particularly popular but also the TLC brown bread remains one of the more popular choices,” he said.
TLC, which employs 12 full time people, intends to grow this side of the business. The vision is to extend to more urban areas across Cork city and county.
It recently opened a gluten-free shop next door to the company’s dedicated gluten free kitchen in Ballinhassig. The inspiration came from the fact that Tadhg Long was himself put on a gluten restricted diet.
Over the years, he has seen many changes in the food service sector generally with a growing trend of people catering at home, with baby showers, graduation parties, 21st birthday parties and pre and postwedding parties.
“People like to stay at home. Children can run freely and not have to leave the premises at 9 pm. People like to have an input into menu types and service times and they can do this by using a catering company.
“Couples are also thinking out of the box when it comes to getting married and are becoming adventurous when choosing wedding venues. Again, this can become a reality when using a catering company.
“We have catered not only for weddings but other celebrations in many venues, bars, clubs and homes in Cork city and county,” he said.
With private catering, sports catering and glutenfree options, TLC aims to provide healthy food with the minimum effort on the consumers part, so they are able to enjoy the occasion stress- and worry-free.
A growing business which is small enough to ensure that the customer is the focal point of its offerings, Tadhg Long said this allows personalisation of all menu offerings, ensuring customer delight.
“Our private catering offerings include full service or drop off service to a home or venue. Our offerings even include a mobile pizza oven for Artisan pizza parties. We can also offer people a Spanish paella evening in the comfort of their own home.
“We also specialise in protory viding healthy and nutritious meals to sports teams both pre and post games and training sessions and for bus journeys to and from matches. We have worked with Cork County and intercounty GAA teams as well as rugby and athletics clubs for over five years now.
“We work closely with team nutritionists to provide them with the best menus, which are personalised to their team’s requirements.
“This has allowed us to gain a fantastic insight into what it takes to fuel the body for the demands of today’s athletes,” he said.
Tadhg, who is passionate about catering and food service, said TLC caters for people in their private home, local hall, rugby club or pub and also provides a collection and drop off service from its headquarters in Ballinhassig.
Having started his own catering business, after travelling abroad for a period, he said his customers are very pleased that he is affiliated with the Love Irish Food brand as it guarantees them that the products are made in Cork, using fresh local produce when available.
“When you make small changes in your shopping trolley by purchasing TLC Foods, not only are you buying healthy tasty delicious meals for you and your family, you are ticking off many boxes.
“You are also being kinder to the environment by reducing imports, you are keeping jobs in your locality and you are finally doing what you set out to do – just trying to do your little bit,” he said.