Only 55% of Irish food and agri-business small to medium-sized enterprises (SMEs) are feeling “optimistic about the future” according to a new report.

Today (Thursday, September 10), ifac published its 2020 Food and Agribusiness Report, its third annual sentiment survey of Irish food and agri-business SMEs.

The survey was conducted by Amárach Research during June and July of this year – which ifac notes was “a very challenging period for many Irish businesses”.

Given the unprecedented impact of the global pandemic and a country-wide lockdown, positive sentiment among owners and CEOs of SMEs has declined this year.

The impact of the pandemic has been widespread, according to ifac, with six out of 10 SMEs using one or more of the Covid-19 financial supports to help manage.

The Temporary Wage Subsidy Scheme was the most commonly used support – with 39% of businesses accessing this.

Only 22% of business owners have a clear succession plan in place, along with 36% of businesses having a documented and used strategic plan.

The report also states that a third of businesses tried to access bank finance in the past 12 months – with 87% succeeding. 72% of businesses are funded by re-investing profits.

And if the threats posed by Covid-19 weren’t enough, there is further uncertainty looming this year as the end of the UK’s Brexit transition period draws close.

In any scenario, Brexit will have an impact on businesses, and the report has found that only 48% of SMEs believe they are prepared for Brexit – with almost one in five not feeling prepared at all.

According to ifac, medium-sized businesses are more likely to feel prepared – reflecting an “ability to allocate resources to Brexit planning”.

It’s not all doom and gloom for this year, however.

Many businesses “reacted quickly to deal with Covid-19” and nine out of 10 expect to be employing the same or more people in the coming year.

The pandemic “accelerated existing digital trends” with a strong move to online; with ifac nothing that there has been a 54% increase in the number of food and agri-businesses who are trading online.

Commenting on the report, David Leydon, head of food and agri-business at ifac said that Covid-19 and Brexit have created “an exceptionally challenging environment” for businesses.

“Given the context, it’s no surprise that many have accessed a range of Covid-19 supports during the pandemic,” he said.

“Yet, despite all the challenges, the agility and adaptability of Irish food and agri-business SMEs has been clear in the recent period with many pivoting to build their digital capacity and trade online.”