Brexit: Financing Considerations for the Irish Food, Beverage and Agribusiness Sector
The UK Government has triggered Article 50 and called a general election. Brexit is now a reality. Many questions still remain unanswered, but potential funding implications need to be considered.
Even at this stage, before formal negotiations have begun between Britain and the EU, it’s accepted that the food, beverage and agribusiness (“FB&A”) sector will be one of the most effected sectors of the Irish economy.
This sector, which is our largest indigenous industry, employing around 250,000 people is a critical element of Ireland’s export-led growth strategy. The sector has a history of producing companies and products which are admired globally for their premium quality standards, innovation and branding. Products range from premium dairy products and ingredients, to beef and seafood produce, to sports nutritional supplements and world famous alcoholic beverage products. The Irish economy has become less exposed to the UK market in recent years, but it is still, by some margin, our most significant trading partner with it comes to food and agriculture exports.
This paper considers:
- Potential funding implications of Brexit on the Food, Beverage and Agribusiness sector in Ireland
- Debt structures available in the market currently
- Working capital financing required to support sales growth targets
- Protecting the downside