The Prepared Consumer Foods ( PCF) sector plays a pivotal role in the Irish agri-food sector. It accounted for €2.8 billion in agri-food sector exports in 2017, having increased by 40% from 2012. The sector comprises of 500 manufacturing units spread across the State, directly employing more than 20,000 people.
In 2017, the UK accounted for 60% of PCF food and drink exports and the sector is therefore significantly exposed to the impact of Brexit. In addition, as 76% of PCF companies in Ireland are small, investment in research and innovation within the sector has traditionally been low.
As part of my Department's response to the challenges arising from Brexit, I secured €5m in Budget 2018 to assist PCF companies in adapting and optimising their production facilities to help them to address the challenges facing the sector .
The €5m capital funding is being invested in capital equipment, to build a shared research capability in the Prepared Consumer Foods Centre in Teagasc Ashtown, where industry can trial and pilot the equipment to assess the viability for scaling up their own production. In addition, it will facilitate piloting industry led collaborative research and innovation. This Centre will enable the sector to maximise value creation opportunities, and to enable the adaption of technology to respond to consumer requirements and increase competiveness and sustainability.
My Department, working with Teagasc, Enterprise Ireland, Bord Bia and the PCF sector, is working to operationalise this Centre by the last quarter of 2018. This timescale follows from the normal Government procurement measures that must be adhered to for the purchase of such capital equipment.