44% of Irish food and agribusinesses delay investment despite record optimism
A new report by ifac (Irish Farm Accounts Co-operative Society) reveals that while record numbers of Irish food and agribusiness leaders are optimistic about the year ahead, almost half have delayed investment because of uncertainty. The 2025 Food and Agribusiness Report, now in its 8th year, is Ireland’s only dedicated sentiment tracker for the sector. Based on responses from 173 agri business leaders, the report shows a sector balancing resilience with caution in what ifac describes as a time of “hyper change.”
Key points from the report
Optimism
80% of food and agribusinesses are optimistic about their performance in 2025 – up 25% on last year.
Investment caution
However, 44% of businesses have delayed investment due to uncertainty.
Rising costs
80% of businesses report input costs are still increasing.
Succession gap
77% of owners have no succession or leadership transition plan.
Foreign exchange risk
70% are not invoicing in euro, exposing them to currency volatility.
AI adoption
88% of leaders are using tools such as ChatGPT or Microsoft Co-Pilot, but only a third feel “very confident” using AI for critical tasks.
Sustainability pressure
83% of respondents report receiving requests for sustainability data from customers.
Exports
9 in 10 businesses have maintained or grown international sales in the past 12 months, with the UK and US remaining key markets.
Speaking on the findings, David Leydon, Group Head of Growth and Agrifood Consulting at Ifac, said: “Even though business leaders are feeling positive, nearly half of them are holding back on investing because they are uncertain about the future. Our report shows that the cost of doing business is a central concern and a persistent pain point – 80% of businesses cite increasing cost pressures. For others, exploring opportunities to differentiate through sustainable practices is key. Sustainability has evolved from a buzzword to a priority. Back in 2019, just 43% of companies were using sustainable packaging. Fast forward to 2025, and 83% of respondents report receiving requests for sustainability data from customers. This emphasises how crucial it is to have expert advice to address the challenges identified in our report, such as rising costs, foreign exchange fluctuations, sustainability, and the rapid adoption of AI.
“As trusted advisers in the food and agribusiness sector, our specialist advisory team is ideally positioned to help businesses not just cope, but truly succeed, by helping them determine their direction and achieve their goals, whether they are a start-up or a long-established business.”
John Donoghue, CEO of Ifac, commented: “Our latest Food and Agribusiness Report highlights the resilience and adaptability of the sector amidst challenges like market volatility, increased competitiveness, and climate pressures. The main drivers of growth include international market expansion, and whilst optimism for the future is high, succession planning remains a chronic weak spot. 77% of business owners have no succession plan; a figure largely unchanged in over five years. Importantly, our report underscores the critical need for succession planning to safeguard the future contribution of this sector to the sustainability of our island economy.
“At ifac, we are committed to providing expert advice and bespoke strategies that help Irish food and agribusinesses navigate challenges, seize opportunities, and achieve long-term sustainability.”
