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The pace of Irish food export growth moderated last year due to weaker commodity pricing and increased Brexit uncertainty, according to Enterprise Ireland.
Releasing the export performance of its client companies on Thursday, the State agency in charge of export companies said the pace of export growth by its food and drink clients ‘moderated’ last year to just 3% as a result of weaker prices and Brexit uncertainty.
Enterprise Ireland said exports by its food company clients grew by 3% last year to reach €12.2bn.
Exports by food companies account for almost half (48%) of all exports by Enterprise Ireland’s client companies, reflecting the importance of the indigenous food industry in Ireland.
Overall, exports by all Enterprise Ireland clients was up 8% last year to €25.6bn. Enterprise Ireland said there was record growth of 15% in exports to Eurozone countries to hit €5.6bn, while exports to North America grew by 16% to reach €4.7bn.
Warned
While 2019 was a year of export growth for its client companies, Enterprise Ireland warned that 2020 was going to be a very different year for businesses due to the COVID-19 pandemic.
“The second half of 2020 is expected to be one of the most challenging facing Irish businesses in recent history. Not only have many businesses been impacted by a significant reduction in customer demand from markets across the world due to COVID-19, but they are also facing the largest structural change to trading with the UK in over 50 years,” said Enterprise Ireland CEO Julie Sinnamon.
“Brexit is now a reality and from 1 January, for the first time, Irish exporters to the UK are going to be faced with new changes to customs procedures, regulatory alignment and, undoubtedly, additional costs.
"Every Irish exporter must now ensure that they take action in terms of securing their supply chains, customer base and meeting new regulatory requirements and ensure they are ready for 1 January,” she added.
Challenges
Tánaiste and Minister for Business Leo Varadkar said the Government needed to do more to support Irish businesses in the second half of this year as the full economic impact of COVID-19 begins to hit.
“We have already put in place a range of measures to help businesses get through the unprecedented difficulties caused by COVID-19, including grants, low-cost loans and deferred tax liabilities.
"We know we need to do more as our economy continues to reopen. The July jobs stimulus will be far-reaching and of scale to get our people back to work and get us back on the road to growth and prosperity,” said Varadkar.
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