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Irish Times
a day ago
- Business
- Irish Times
Small Irish businesses say tariffs will hurt US consumers most
Many smaller Irish exporters have mixed feelings about the trade agreement between the European Union and the United States. Last week, they understood there was still an outside chance that discussions could go off the rails with the possibility of a trade war. At the same time, they are less than impressed with the outline deal being presented in the media. Sarah Furno, of Cashel Blue, greeted the news from Scotland yesterday with a 'degree of relief' and the sense that the Tipperary cheese company can now make more definite plans for the US market. Sarah and Sergio Furno of Cashel Blue cheesemakers 'Uncertainty is impossible and disabling especially in a prolonged manner,' she says. 'Overall we feel it could have been worse. It's a relatively even playing field for imports and there is enough light to keep doors open. READ MORE 'Of course it will hurt the average American most'. Ms Furno said the 30 per cent rate threatened by US President Donald Trump would have pushed Cashel products off US shelves. Leo Cummins, of Hazelbrook Confectionery in Co Kildare, decided earlier this year to shun the US market due to the uncertainty. On hearing the news of the agreement, he said he was even more convinced that ignoring the US market in the short term was 'the right thing to do'. 'Obviously one has a concern that the deal as it stands looks quite lopsided in favour of the US,' he says. Leo Cummins of Hazelbrook Confectionary in Newbridge, Co. Kildare. Photograph Nick Bradshaw 'I personally think that American candy sales will decline in Ireland, the UK and Europe over the next three years as consumer sentiment towards America becomes more negative. 'Whilst it appears that there will be no tariffs on US candy imports into Europe, American candy manufacturers will have to pay extra for their cocoa and other ingredients that are not produced in America and that will push their costs higher and hence their prices to European customers.' Mr Cummins says more expensive US confectionery will open doors for Hazelbrook in the UK and Europe as importers there will look to find cheaper alternatives. Whiskey manufacturers were particularly concerned at the possibility of trade talks failing. Brendan Carty, of Killowen Distillery in Co Down, will now have to contend with two different trade deals – the EU deal at 15 per cent and the UK one at 10 per cent. As Irish whiskey is bottled and bonded on both sides of the Border, it presents new headaches for the likes of Killowen. 'If a distillery sells 50 per cent distilled in Killowen and 50 per cent distilled in the Republic, I suppose our tariffs will be complicated and will fall between the two,' says Mr Carty. 'That's the nature of navigating a global market. It's always changing and very complex. It's the consumers who will take the hurt in the end. 'It's always a navigation exercise working things out with overseas partners, part and parcel of the business, so we won't get too upset about it'. The Irish Whiskey Association still hasn't ruled out the chance that the agreement could yet see the return of 'zero-for-zero' trade in spirits. Director Eoin Ó Catháin says the 10 per cent rate currently being applied, along with a weakened US dollar, has forced some operators to shut their doors. 'We are hopeful that, as we learn more about this deal and discussions on its implementation continue, a mutually beneficial arrangement and the removal of tariffs can be secured,' he says. The overriding sentiment from many exporters is that the deal represents an unwanted regression. With no upsides for Irish businesses – other than avoiding even worse terms – it is the new price of doing business with the US.
Irish Times
5 days ago
- Business
- Irish Times
Profits rise at Cashel Blue producer with aims to fund further capital investment
Profits rose at Cashel Farmhouse Cheesemakers, the producer of the famous Cashel Blue cheese, with the company aiming to use the surplus to fund further capital investment. J & L Grubb Limited, the company behind the brand, recorded profit of more than €960,000 in the 2024 financial year, according to filings made to the Companies Registration Office. This followed a profit of €951,000 in 2023. A spokesman said the company was 'building reserves to allow continued investment' after it made a 'huge capital investment' in 2010. The Cashel Blue brand was created by Louis and Jane Grubb in 1984 and has continued to be made by hand on the same farmland since it was founded. It is based in Fethard, Co Tipperary. READ MORE The brand is now led by a new generation of the family: the founders' daughter and her husband, Sarah Furno and Sergio Furno. Speaking to The Irish Times, the spokesman said that 2023 was a 'particularly good year' with the company having benefited from a 'post-Covid bounce', which he said benefited the food sector generally. In 2024, however, a sharp increase in milk prices forced the company to 'change its pricing slightly' as farmers were hit by a wetter than expected start to the year, which disrupted dairy volumes and price. 'Every cost has gone up. You name it and everything has gone up,' the spokesman said, with the family business seeking to retain a 'simple philosophy' of trying to build the company sustainably in order to be able to 'make the next step.' 'We are a sustainable, family-based rural business trying to hire people from the locality. We use locally produced milk, and hire our labour locally as much as possible.' The majority of the business' sales are domestic, around 70 per cent, with the balance exported to other markets. While tariffs may impact the company's exports to the US, they only have a small portion of their exports exposed to that market. The market turmoil, however, has created 'opportunities' for the company as there is interest from new markets in their product as people are 'now shy of buying American', the spokesman said. Accumulated profits stood at €9.2 million, with more than €500,000 in finished goods in stock by the end of 2024. The company had 22 employees in 2024, down seven from the year prior.
