Growth for Irish food exports despite political uncertainty
Ireland’s agri-food sector has been hailed as “durable and innovative” with the nation’s food, drink…Ireland’s agri-food sector has been hailed as “durable and innovative” with the nation’s food, drink and horticulture exports reaching €12.1 billion in 2018.
Despite the continued political uncertainty, extreme weather events and currency fluctuations denting competitiveness, the value of Ireland’s agri-food exports fell only 4% from 2017’s record high.
The UK market remains central to Irish food and drink exports. The UK accounted for €4.5 billion, an increase of 2% compared to 2017 despite the tail effects of significant currency challenges in 2017 and political uncertainty over the outcome of Brexit.
The results are taken from Bord Bia’s ‘Export Performance and Prospects 2018/2019’ which was recently launched by Michael Creed, Minister for Agriculture, Food and the Marine.
“Market and trade insights suggest that the global demand for Irish food and drink will remain positive in 2019, but of course the potential impact of Brexit is a very significant risk,” said Creed.
“In circumstances such as these, it is more important than ever that we redouble our efforts to extend our reach in the global marketplace, that we continue to strive for the highest quality and improve the marketability and quality of our produce.
“My department will continue to work closely with Bord Bia to ensure that Irish food retains its global reputation for the highest quality”.
A tale of meat and dairy
The report revealed that Ireland’s two largest export categories – meat and dairy, which account for 66% of total exports – remained stable.
Dairy was the strongest performer in terms of export volume growth in 2018, with volumes up 5% compared to 2017.
The value of dairy exports remained stable, exceeding €4 billion for the second year in a row.
Butter had an exceptional year in the US and continental Europe and for the first time the value of Irish butter exports exceeded €1 billion for the year, representing a 22% increase on 2017’s value.
More than 50% of Ireland’s cheese exports – of which 83% is cheddar – is destined for the UK. However in 2018, 22% of cheese exports were destined for countries outside of the UK and continental Europe – a significant increase from 17% in 2010.
In 2018 the value of cheese exports to Asia and to North America increased 12% and 35% respectively to a total value of €75 million.
Meanwhile, the value of meat and livestock exports from Ireland in 2018 was just under €4 billion, an increase of 1% on 2017 and a record high for the category.
Seafood exporters suffered from reduced quotas in mackerel and from decreased production of farmed salmon in 2018. As a result and because of more broadly challenging global market dynamics, the value of Irish seafood exports declined by 8% to €562 million.
Bord Bia CEO Tara McCarthy said: “In both dairy and in animal protein the supply demand dynamic is positive for exporting nations like Ireland.
“Demand will continue to outstrip supply and new consumers tend to be in countries with low dairy or animal protein self-sufficiency.
“In line with Bord Bia’s Market Prioritisation work, growth in dairy, meats and seafood in particular will come to a great extent from emerging economies in Asia and elsewhere.”