The publication of Bord Bia’s Export Performance and Prospects report 2019/2020 by the Minister for Agriculture, Food and the Marine, Michael Creed, TD, reveals a stand out 2019 performance by Ireland’s food, drink and horticulture industry as exports reached €13bn in 2019 (2018: €12.1bn) for the first time. This is the highest level of exports in Bord Bia’s 25-year history and brings to a close a decade of consistent and extraordinary growth in which food, drink and horticulture exports have grown by 67%, or €5.5bn, since 2010.
Speaking at the launch of the report, the Minister for Agriculture, Food and the Marine, Michael Creed TD, said: “2019’s record performance for Irish food and drink exports is testament to the resilience and dedication to sustainability and world class quality amongst our indigenous producers. Total Irish agri-food exports are estimated at a record €14.5 billion in 2019. This figure includes €1.5 billion in non-edible agri-food sector goods, including forestry and animal feedstuffs, which are not included in the Bord Bia figures. Bord Bia’s figures show that food and drink exports have grown by 7% to €13 billion. It is important to acknowledge too the contribution that Ireland’s farm families have made to this export performance, and to recognise the need for the supply chain to deliver a reasonable commercial return for those upon whom the production of high quality consumer products and raw materials depends. A diversified approach to increasing our reach within the global marketplace has yielded record levels of growth with a strong performance recorded across most sectors and categories. That said, we face into a global trading environment in 2020 which continues to be marked by volatility and political uncertainty. My Department will continue to work with Bord Bia to support Ireland’s largest indigenous industry as it faces into both the opportunities and challenges of 2020, a year which could be instrumental in defining the next decade for the sector.”
Tara McCarthy, CEO of Bord Bia, added: “2019 was a watershed year for Ireland’s food and drink industry not only in the total value of exports achieved but also in the make-up of their destination. For the first time export levels to continental Europe exceeded exports to the UK. This result gives further impetus to the market prioritisation work undertaken by industry, DAFM and Bord Bia over recent years.” Decade of extraordinary growth 2019 marks the tenth consecutive year of positive export growth for Ireland’s food, drink and horticulture sector with exports up 67%, or the equivalent of €5.6bn.
Tara McCarthy commented: “This decade of consistent and significant growth points to the resilience and innovation that underpins Ireland’s largest indigenous sector.” Export Destinations Irish food and drink produce is now exported to over 180 countries worldwide. Diversification and driving value growth proved to be two of the defining factors for Irish food, drink and horticulture exports in 2019. Bord Bia remains relentless in its focus on positioning the premium and quality credentials of Irish produce in export markets, particularly relevant to challenged primary producers who will be seeking to maximise value in 2020 and beyond. In the context of the ongoing uncertainty of Brexit, Bord Bia’s analysis tool – the Brexit Barometer – continued to be a valuable resource across sectors and allowed Irish food and drink producers to avail of customized support services to accelerate Brexit preparedness and to protect and maintain their share of the important UK market.
Horticulture: Edible horticulture and cereal exports were up 8% to €248m in 2019.The year proved to be a challenging one for Irish mushroom producers, who account for over 42% of all Irish horticulture exports. Currency volatility, cost increases and uncertainty in the UK consumer market- the destination for almost all Irish mushroom exports - resulted in continued consolidation in the sector. Despite this, the category’s exports grew in 2019 by 4% to €104m.
Outlook While the world economy is gearing towards a slowdown, shifts in consumer preferences in developing economies towards dairy and animal protein consumption and production constraints impacting across global agriculture provide reasons for cautious optimism that Irish food and drink exports can sustain its path of growth in 2020.
In the important UK market, this will be contingent on 2020 delivering a firm step forward in the Brexit debate, with consumer and economic sentiment likely to be emboldened by a clearer picture of how the future relationship between the EU and the UK will take shape. Commenting on the prospects for Irish food and drink exports in 2020, Tara McCarthy, concluded: “Emboldened by the extraordinary export growth achieved in the decade gone by, Bord Bia is resolutely focussed on achieving the ambitions of Ireland’s food and drink industry as we move into 2020. Under the strategic guidance of the FoodWise 20205 plan, the target for food and drink exports in 2025 is a value of €19bn. To achieve this, we need to remain sharp in our focus, agile in the face of continued uncertainty and we must double down on reinforcing our purpose for premium. We will face renewed and increased pressure to maintain and grow our premium on the market in the face of global turbulence arising from the outcome of Brexit, US trade policy and China’s growing geopolitical influence on how we produce and consume food. That said, our focus remains clear; to deliver broad based sustainable growth for Ireland’s largest indigenous industry and our world class food and drink producers.”