Up to 2,000 food and drink industry jobs have been lost this year and thousands more are at risk, according to a representative body for the sector.
Food and Drink Industry Ireland (FDII), which is part of employers' group Ibec, said the Government must seek to reduce the costs facing the sector, particularly energy.
Operating costs were far higher here than in other European countries, the group said, adding that the sector contributed €8 billion in exports annually and it has called for the introduction of an ombudsman for the food sector.
Tanaiste and Minister for Enterprise Mary Coughlan told RTE's Morning Irelandthat she would shortly introduce a "code of practice" for the sector based on an agreement between retailers, suppliers and the Departments of Agriculture and Enterprise, trade and employment.
She said it remained unclear why certain retailers seemed to have far higher levels of profitability than other and added she was aware that the amount of shelf space given to certain Irish food producers in Tesco outlets had diminished.
She added that the Competition Authority had been asked to examine the cost of doing business.
Paul Kelly, FDII director, said the balance had shifted in favour of retailers in recent years and said their bargaining power was now much higher than that of suppliers.
He added that the higher cost base facing Irish-based food companies was out of line with competitor countries and called on the Government to address this.
According to FDII Ireland has one of the highest levels of grocery market concentration in Europe with the three main supermarkets controlling 70 per cent of the market.
The group also wants the Government to address the consequence of the rapid and dramatic decline in the value of sterling. It believes the State should seek EU approval to set aside State aid rules and provide grant assistance so firms can introduce measures to improve productivity.
According to the report the sector supports 50,000 direct jobs a further 60,000 in distribution and approximately 120,000 farm livelihoods.