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Irish Food and Drink Exports Hit €11 Billion for First Time Ever

bordbiaFigures announced today by Bord Bia, the Irish Food Board, show the value of Irish agri-food and drink exports has exceeded €11 billion for the first time ever in 2016, despite a small decrease in UK exports following Brexit and currency fluctuations.  

Overall exports were up 2% on last year. The 8% fall in UK exports has been offset by strong growth in international markets (+13%), in particular North America, China and the Rest of Asia, and EU Markets (+3%).

Speaking at the launch of Bord Bia’s Export Performance and Prospects 2016-2017 report, Mr Michael Creed TD, Irish Minister for Agriculture, Food and the Marine, said:

“2016 marked the 7th successive year of growth of Irish food and drink exports, with a further 2% increase recorded to reach a record high of €11.15 billion, an expansion of 41% or €3.3 billion since 2010. The strongest performing sectors last year were prepared foods (€1.92 billion, +9%), beverages (€1.4 billion, +4%) and dairy product and ingredients (€3.38 billion, +2%).”

“One of the notable features of this achievement is the impact of market diversification in the year in which the UK decided to leave the European Union. While trade with the UK fell by 8%, triggered by challenging exchange rates, uncertainty arising from Brexit and further competitive pressures, this was offset by increased exports to international and emerging markets such as North America (+€200 million to reach €1.1 billion), China (+35% to reach €845 million) and the rest of Asia (+6% to reach €330 million). An overall increase of 13% in shipments to international markets, to reach a value of approximately €3.5 billion, was particularly remarkable," added Minister Creed.  

According to Bord Bia estimates, the underlying weakness and volatility of sterling negatively affected the competitiveness of Irish exports reducing the value of trade by a potential €570 million.

Noting that the UK referendum on Brexit had led to currency volatility and uncertainty, the Minister said this challenge, together with weakness in some commodity prices, highlighted the importance of market access, of identifying market opportunities for value added products and of continued investment in innovation and competitiveness. "The UK will continue to be a critically important market for Irish agri-food products. The triggering of Article 50 and the continued uncertainty around Brexit will present significant challenges for the sector. However, the 2016 export figures illustrate clearly the importance of collaborative action by Government, its agencies and the industry, and the potential for pro-active effort on international markets to mitigate the risks associated with these challenges."

Padraig Brennan, Director of Markets, Bord Bia highlighted how increased volume in key sectors, and an improvement in market demand for key categories, helped boosted trade throughout 2016. “Some 80% of total export growth in 2016 was recorded in trade to international markets where higher demand, improved market positioning and relatively steady exchange rates helped improve the competitive position of Irish exports” commented Mr. Brennan. “Since 2010, international markets have accounted for half of the growth in total exports, which reflects the industry’s ability to identify and develop new business opportunities. Irish food and drink exports to China have increased six fold in six years, while exports to North America and the Rest of Asia have doubled in the same period.”

Bord Bia Chairman Michael Carey welcomed the export results and commended the sector on its performance. “Despite difficult trading conditions, it is encouraging to see this industry continuing to grow business and extend its global footprint to more than 180 markets around the world. Increased export volumes were recorded across a number of key categories, with milk availability over 5% higher during the first 10 months of the year and beef export volumes up 5%. The combined impact of higher output in these sectors is estimated to be in the region of €250 million.”

The strongest performers in terms of export growth in 2016 were prepared foods, sheepmeat, beverages, pigmeat and to a lesser extent dairy. Weaker prices negatively affected the value of beef and edible horticulture exports while lower volumes affected seafood exports. Livestock exports declined in value terms largely due to a significant reduction in live cattle shipments, while poultry exports recorded a significant decrease due to both reduced prices and lower volumes. www.bordbia.ie