New report shows food industry adapting to Covid-19 pandemic

increased.” Retailers, and other SMEs, helped lift the country from the deepest of recessions to a country with a less than 5% unemployment rate. “After the last recession, SMEs were left to their own devices,” said Buckley. “There was a huge focus on the solvency of the banks. We felt this time the focus needed to be on the SME sector.” Within his report, Power included specific measures to deal with the Covid-19 pandemic. These include liquidity and solvency supports, fiscal grants, lower VAT rates, reduced excise duties, a commercial rates holiday for 12 months, a commercial rent scheme and insurance cost alleviation measures. Earlier this month, RGDATA made their own submission to the Oireachtas Special Committee on Covid-19 Response, highlighting concerns. “As independent grocers, we bring a huge learning from the pandemic,” said Buckley. “We were the businesses that had to stay open and deliver safe working and shopping environments.” RGDATA’s recommendations include the proposal to establish a national taskforce on town centre regeneration, a request to keep business costs low, and a request to keep banking and insurance sectors under constant scrutiny. The area of banking costs - particularly around contactless payments and card payments, and loan and overdraft commitments - is a specific area of concern. The Local Jobs Alliance’s proposed state agency is a permanent rather than temporary strategy, suggested Power: “SMEs rarely have the resources to market properly, engage in innovation, research, development, staff training - all the skills that are required to take a business from small to large in scale.” It is no coincidence that these proposals coincide with efforts to form a new government. “You strike while the iron is hot,” said

Covid-19 pandemic

Jennings. “We want to make Fianna Fáil, Fine Gael, Sinn Féin, the Green Party, everyone, aware that you cannot cast us aside.” Buckley added: “The Local Jobs Alliance and the individual associations are working hard on getting this message into the parties negotiating for government, and other TDs and policy makers. We’re hopeful the new programme for government will include some of these measures and Vincent Jennings, CEO, CSNA. a new way of going about policy making that puts the SME sector at the top.” According to Jennings, the Local Jobs Alliance will also be making submissions through the Covid committee. Ultimately, the new policy platform could give grocers, and other SMEs, enough strength in numbers to have a say in government decisions. While organisations such as CSNA and RGDATA plan to continue representing their members on an individual basis, a single voice may be necessary for the preservation of small businesses around Ireland. “I do think we need to come together to collaborate if we are going to rebuild communities and towns and villages,” said Buckley. “We shouldn’t be competing against each other. We

New report shows food industry adapting to

should be working together.”

ONE in three food are coinciding with a focus on capitalising on new consumer Irish businesses have behaviours and market opportunities to grow revenue.” sought to alter their The food industry has been pushed into a ‘sink or swim’ route to market, as a scenario. The pandemic has generated many challenges, from result of the Covid-19 protecting human health, to adjusting and adapting to the pandemic, according to shift in the marketplace from food service to retail. However, a new survey conducted opportunities have also arisen across the sector, according to the by Grant Thornton’s report. Agri-Food team in May The overarching positive impact of Covid-19 on the food 2020. 35% of businesses industry has related to the adoption of technology across all have leveraged new stakeholders. Over a third of respondents identified the increased technologies and 30% use of technology as a positive impact from the pandemic. While have sought new service the short-term benefits of this are already being realised, it is Padraig Ryan, Director in Grant Thornton’s Business Consulting Team. providers or customers, while almost half of all businesses surveyed have examined their business also felt that businesses will continue to benefit in the medium and long term. For almost 20% of survey respondents, the market outlook has improved as a result of Covid-19. Interestingly, of the 20% strategy and nearly one quarter have already pivoted their who indicated more market optimism, 70% had forecast a decline business model. in revenue for 2020. For these businesses, although revenue “The food industry has shown great resilience to recover is declining, they still feel that Covid-19 will have a positive from initial Covid-19 shockwaves,” noted Padraig Ryan, impact. There may be many factors contributing to this viewpoint. Director in Grant Thornton’s Business Consulting team. Renegotiated terms of business may provide a greater long“Almost instantaneously, customer demands and business term opportunity, changing consumer behaviours may result in operations changed to meet global and national market changes. increased product demand, business model agility may create Unsurprisingly, the industry has placed a real focus on curtailing new customers and leveraging technology may yield efficiencies costs and driving increased revenues, and where possible, for some businesses. increased margins. Managing the transition back to business as usual will bring “Logistics and supply chain costs have risen significantly a new set of challenges but encouragement can be taken from during this period,” he continued. “The industry has sought the resilience the industry has shown, according to the report. to offset new additional expenses by reviewing financial and The findings indicate that while for many, there are challenging commercial arrangements and implementing cost cutting times ahead, the industry is well equipped to navigate these and lean measures within their businesses. These practices challenges.