Food and drink exports hit record €16.7bn in 2022 despite inflationary challenge

A record €16.7 billion worth of food, drink and horticulture products were exported from the Republic last year, up 22 per cent or €3 billion on the previous year, Bord Bia’s latest export performance and prospects report shows.

The stronger-than-expected performance came despite the impact of war in Ukraine, inflationary pressures on producers and global supply chain issues related to Covid.

The agency said the “significant increase” in food and drink exports can be attributed to both increased unit prices, due to inflation and rising input costs, and an increase in the volume of goods exported.

With the UK now operating outside of the European Union customs union, there had been concern about possible barriers to trade there.

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However, the latest figures show the UK remains the largest single country market for Irish food and drink exports, with exports valued at an estimated €5.4 billion in 2022, an increase of 20 per cent on 2021 levels.

“Irish exporters have navigated their way through considerable uncertainty in terms of the new trading environment with the UK, and more recently a rapidly slowing British economy,” Bord Bia said.

More than a third (34 per cent) of the Republic’s food and drink exports went to international markets outside of Europe, while the EU and UK accounted for 34 per cent and 32 per cent respectively.

Irish dairy exports were valued at €6.8 billion last year, a year-on-year value increase of 33 per cent or €1.7 billion, driven mainly by Irish butter (up 26 per cent in value) and cheese (up 25 per cent).

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Dairy remains the single largest element of the State’s food and drink exports, with more than 1.7 million tonnes of product shipped to more than 130 markets worldwide.

This was followed by the meat and livestock exports which were valued at more than €4 billion last year, representing a 15 per cent value increase (+€520 million) on the previous year.

Although product prices increased across all meat categories, Bord Bia said the “robust performance” also reflected increases in output levels.

Among the other categories, prepared consumer food export values exceeded €3 billion on the back of the reopening of food service businesses as Covid-19 restrictions were relaxed, while Irish drink exports reached almost €2 billion (22 per cent up year on year) for the first time, a 25 per cent value increase on pre-pandemic (2019) levels, “which reflects the extraordinary recovery and now growth of the sector following difficult years in 2020 and 2021″.

North America continues to be the key export market, representing 52 per cent of overall exports at just under €1 billion while Irish whiskey exports accounted for 60 per cent of the overall value growth last year, the agency said.

Minister for Agriculture, Food and the Marine Charlie McConalogue welcomed the sector’s results, noting they were “delivered amid a profoundly challenging year for the sector, most notably the impact of the war in Ukraine, inflationary pressures on producers, and ongoing Covid-19 disruptions to the global supply chain.

“Against the backdrop of this difficult global trading environment, Ireland has continued to maintain its reputation as a world-class sustainable food producer and supplier, while also successfully securing new business in new markets around the world,” he said.

Newly-appointed Bord Bia chief executive Jim O’Toole said the industry’s performance in the face of such challenging market conditions was “highly commendable”.

“Following two years of profound disruption, 2022 brought a new range of cost and sourcing challenges, making this year’s export performance even more impressive. Today’s results are testament to the resilience of one of Ireland’s most important export industries,” he said, while warning that the industry needed to be responsive to a range of oncoming challenges in 2023.