Vast majority of agri-food SMEs have no succession plan in place – IFAC

40pc of businesses are open to selling in the next five years
40pc of businesses are open to selling in the next five years

New research released by accounting body IFAC shows that 83pc of Irish agri food small and medium enterprises (SMEs) have no clear succession plans in place.

The research suggests that this is mainly due to the fact that the owners have not thought about it, business viability and no interest from the next generation.

This is despite that 40pc of businesses are open to selling in the next five years which is higher than might be expected in the sector, the research found.

Conducted by Amárach Research, the research also shows that four in 10 medium sized companies are planning to hire next year, however, 63pc of all employers are saying its somewhat or very difficult to find the right people to run the business.

Another area for concern is the growing costs for food and agribusiness SMEs. Cost pressure is evident across the industry with 86pc of medium sized businesses experiencing increases in business running costs averaging at 5pc. Only 3pc of companies saw a decrease in costs.

According to IFAC, while optimism levels are high for the coming 12 months, it says its report highlights a number of issues which are concerning.

Brexit is looming but many businesses (49pc) are not planning for the implications of Brexit, costs are increasing right across the board which is impacting on margin while recruiting the right team to grow food and agribusinesses is proving difficult.

However, this is tempered by a buoyant economy in Ireland where 84pc of their sales are derived, it says.

Also Read

In terms of digital transformation which many companies are going through, broadband, is still an issue in rural Ireland although only 7pc of companies doing a significant level of online trading.

Online Editors

!function(d,s,id){var js,fjs=d.getElementsByTagName(s)[0],p=/^http:/.test(d.location)?’http’:’https’;if(!d.getElementById(id)){js=d.createElement(s);;js.src=p+’://’;fjs.parentNode.insertBefore(js,fjs);}}(document, ‘script’, ‘twitter-wjs’);