What has driven the growth in 2017?

Increased volume in our key export sectors, combined with strong market returns, helped boost trade throughout 2017. The export performance was mainly driven by dairy, which now accounts for a third of all exports. The grass-based economy (dairy, beef, sheep) now accounts for two-thirds of exports.

Has butter been key to growth last year?

This surge in dairy exports is driven by a 6% volume increase and higher market prices. While infant formula accounts for one-third of dairy export value, it was static. Butter export value increased 60% and was responsible for over half the growth in dairy exports. This reflects the higher production and the surge in the global dairy fats markets.

Continental Europe accounts for almost two-thirds of Irish butter exports where the value of butter shipments doubled in 2017. The value also doubled in its leading market, Germany. Dairy accounts for some 45% of all sales to international markets.

Have rising global prices boosted performance?

While data from the FAO show that commodity food prices were higher in 2017, increased export volumes in both beef and dairy played a pivotal role in this year’s export performance. Volumes of dairy were up 6%, beef up 4.5%, pigmeat up 3% and sheepmeat up 14%. According to the FAO, dairy prices increased 10% over the year, meat prices were largely unchanged while cereal prices increased 8% in the year. Sugar prices fell 26% in the year.

Which region is showing the strongest growth?

The greatest growth has been seen in international markets, where exports increased 17% to reach €4bn for the first time. Continental markets also performed strongly, growing by 16% to reach €4.1bn. Exports to the UK increased a more modest 7% to reach €4.5bn. US exports exceeded €1bn for the first time.

Has a stronger euro dragged export performance?

As about one-third of trade is conducted in sterling and almost the same amount on international markets that mainly trade in US dollars, Irish food exports have considerable currency exposure. While there has been some fluctuation, sterling has remained weak relative to the euro and averaged £0.88 over the year. In contrast, the dollar strengthened compared to 2016. However, it has lost some of its value as the year went on and averaged $1.13 for the year. So overall the currency weakness has been a challenge.

Are you concerned about the UK economy?

UK economic growth forecasts have recently been revised downwards. This illustrates the precarious nature of the UK economy, especially given the uncertainty surrounding Brexit. While Ireland’s trade has diversified in recent times, the performance of our closest neighbour is still important.

Geography dictates food exports and we must firstly defend our export position with the UK. It remains our most valuable market, has grown in overall terms, despite the difficulty presented by Brexit and a weaker sterling. But sterling volatility, combined with slower economic growth, food inflation and lower wage forecasts, will put further pressure on the UK market as an export destination.

Are we doing enough to diversify our markets?

Trading in the international marketplace has been a strengthening component of our industry over the last decade. However, Brexit has, of course, placed a new urgency around diversification for many exporters. We are collaborating with industry to develop a more data-led, strategic approach to export diversification and market prioritisation.

Irish exporters require higher levels of consumer insight, market information and understanding to successfully enter and grow in any international market.

Bord Bia’s focus is to put the infrastructure in place to ensure Ireland’s agri-food industry is best informed, best positioned and best prepared to avail of all possible opportunities that will arise

What market are you most excited about?

I am most excited about China. It shapes the global food industry. China’s economy is expected to grow 6.5% in 2018 on top of 6.8% growth last year. This growth is underpinned by supply side reforms and should aid ongoing consumer demand.

China is now our second-largest market for dairy after the UK. It accounts for 37% of our international trade and 16% of total dairy exports.

Will the Chinese market open for beef in 2018?

We remain hopeful although it is not in our control and lies in the hands of the Chinese authorities. A further trade mission is planned to build relations before the summer. We continue to invest in market research in China to be prepared for when it does open.

Are we diversifying our markets enough for sheepmeat?

While 60% of sheepmeat exports end up in France and the UK, there is strong growth potential in Germany, Italy, Denmark and Belgium. We are investing in joint European marketing campaigns. Germany has strong growth potential with a large meat-eating population and low consumption. We are also looking to get market access to the US and China.

What is your outlook for the year ahead?

While Brexit remains the great unknown, we still expect 2018 to be another year of growth, albeit at lower levels. The key export categories, dairy and beef, remain stable, with further volume growth anticipated. We expect a softening of prices in dairy in 2018.

In light of Brexit, would Bord Bia and the Irish economy benefit from additional funding?

In 2011, Bord Bia had a budget of €46m. Since then exports have increased 60% and the budget has increased in line by 56% to reach €72m. We have built a strong programme with the resources we have. There is a willingness by the Department of Agriculture to invest in new ideas that secure export performance.

What are your priorities for 2018?

To create a new strategy along with a tool kit that will focus the industry on where the greatest opportunities are for Irish food exporters.