While current markets for Irish food exports are dominated by the UK and the wider EU, future global growth will be driven by developing opportunities outside the EU. Africa, already a substantial market for Irish dairy and some meat products, holds lots of potential in areas including the live export cattle.

The US is a more mature market, but one in which Irish dairy is now well established. Beef sales to the US and Canada have been slow as its imports are mainly for manufacturing beef used in burgers and as a food ingredient. These are mainly supplied by a combination of internal production and imports from Australia and Mexico.

But it is Asia where the most potential for Irish exports lies. Asian markets have proven to be a fruitful for Irish produce in recent years, with EU trade deals and soaring demand creating major opportunities for Irish businesses. This is only set to further increase as populations continue to rise and more trade deals are finalised.

Global market development

Exports of EU agri produce have been on an upward growth path and the latest figures published last week by the EU show exports for January 2019 at €11.2bn for food and drink exports, up from €10.6bn in January 2018. Irish exporters have received major benefits from Bord Bia’s joining of EU programmes for the promotion of EU agricultural produce, which delivers funding of up to 80%

Brand identity

Irish food and drink enjoys a strong brand identity in UK, EU and North American markets, but there is much less awareness of Ireland or Irish produce in Asian countries.

There, Ireland is seen as a component part of the EU, which is the recognised identity across Asia. It is the EU, and not Ireland individually, that has successfully negotiated trade deals with Japan, Vietnam and Singapore and has talks ongoing with South Korea, Indonesia and Malaysia.

Operating under an EU umbrella in Asian markets, however, doesn’t compromise the opportunity to build Irish identity for food and drink produce.

If we were to think of it in a tourism context, Tourism Ireland promotes the island of Ireland internationally as a tourist destination while within Ireland regional campaigns are developed to attract visitors once they get here. Similarly in international food markets, once the EU has secured a deal it is up to each member state to promote their own produce.

Within the overall EU identity, Ireland has a strong identity when it comes to food and drink exports.

The opportunity

The Chinese market has been heavily impacted this spring by the African swine fever (ASF) outbreak in the third quarter of 2018. This initially caused a serious oversupply of pigmeat that depressed global prices.

The effects of ASF in China haven’t been confined to pigmeat – demand for beef also surged in the first two months of this year and is expected to continue throughout 2019

However, as Bord Bia forecast, once this oversupply passed through it would leave a huge deficit which would drive demand from supplying countries such as Ireland. Rabobank is now reporting that the deficit will be even greater than estimated, which will drive demand over the coming months. Bord Bia expects to see a strong increase in Irish pigmeat exports to China which were worth over €79m in 2018.

The effects of ASF in China haven’t been confined to pigmeat – demand for beef also surged in the first two months of this year and is expected to continue throughout 2019. Growth of Chinese beef imports over the past decade has been spectacular, but it is only since the middle of 2018 that Ireland has been able to access this market. Now seven Irish beef factories are in a position to export beef to China, though a further 12 are currently undergoing the approval process.

Other Asian markets

Japan is a major export market for Irish pigmeat, with sales there of €41m in 2018. It also took in just under €42m of Irish dairy. Japan is the third largest global import market for beef, though high tariffs and a strong relationship with the US have meant limited opportunity beyond offal for Irish products.

This is likely to change going forward as the EU trade deal which was agreed in February should lead to strong growth.

Elsewhere, Malaysia imported €25m of Irish dairy in 2018 while the Philippines took just under €18m worth. The Philippines is also a market for Irish beef and offal, with sales in excess of €31m in 2018.

South Korea is also a strong importer of Irish products, taking €14m of Irish pigmeat in 2018. It is also a major beef importer, though a trade deal that will allow Ireland to export beef there is still in the negotiation stage.