Irish food firms develop an appetite for UK market
Post-Brexit, Irish companies look at setting up shop in UK to safeguard against tariffs
Ornua has bought a cheese plant in Cheshire, and a number of other Irish food producers may set up plants or buy up companies in the UK. Photograph: Phil Noble/PA
There is a lot of talk about the hoped-for inflow of financial services firms related to Brexit. But there will be a flow of outward investment, too. Some Irish-owned firms selling to the UK market will establish plants in Britain, or buy existing operations there. This is one obvious safeguard to the risk of customs checks and tariffs for those selling into the UK market.
On Wednesday Ornua, formerly the Irish Dairy Board, announced that it was buying a cheese plant in the UK market, FJ Need in Cheshire, with an annual turnover of €50 million. Ornua already has operations employing some 950 in the UK – and is also expanding in other markets, notably Germany and the US, meaning its move is not purely Brexit-related.
But in its statement announcing the acquisition, the company noted that the move “will also strengthen Ornua’s UK business’s capabilities in the post-Brexit environment”. Decoded from business-speak, this means it will be able to serve UK customers from a UK plant, if needed.
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Britain takes some 40 per cent of Irish food exports and many companies will not want to take the risk of access being hindered to a key market.
Get ready for a string of UK purchases and investments by Irish food firms.