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Ireland’s dependence on the UK for food and drink exports grew to 37% last year. This represents an increase of 2% compared with 2017, according to Bord Bia’s Export Performance and Prospects 2018/2019 report launched by the Minister for Agriculture Michael Creed on Wednesday.
Exports of beef to the UK increased by 4%, but Bord Bia CEO Tara McCarthy said that consumption per capita declined. This was “driven apparently by price inflation in the category, so consumers move out of the category if the price goes too high.”
Price pressure
McCarthy added that there will be continued price pressure for beef and that if WTO tariffs are employed in the event of a no-deal Brexit, it will not bode well for the sector.
Overall, the value of Irish food, drink and horticulture exports reached €12.1bn in 2018, down 4% on 2017.
However, it was the ninth consecutive year of growth in the volume of agri-food exports with a further increase of 2% (50,000t) for 2018.
Meat and dairy account for two-thirds of total exports.
Ireland produced and exported more dairy than ever before, with butter exports exceeding €1bn for the first time. This was due to growth in the US and continental Europe.
The overall value of dairy exports remained stable, exceeding €4bn. Beef exports were valued at €2.5bn, while sheep exports reached €315m due to price growth of 15%.
IFA president Joe Healy said that “volume growth is all well and good, but the primary producer has to see a decent price return for their work and investment”.
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