Prepared meals help boost food and drink exports above £5bn

Irish food and drink exports reached a record level of just over £5 billion last year

Irish food and drink exports reached a record level of just over £5 billion last year. The prepared consumer food and drink sectors recorded an exceptional performance, leading to a 6.3 per cent growth in value.

Despite an appalling year for farmers, exports of beef grew by nearly 4 per cent. But sheepmeat exports dropped by 3.4 per cent and the pig sector experienced a 9.4 per cent drop in value.

The main focus of attention at the announcement of the figures yesterday in Dublin was on the prepared consumer goods area, which recorded a growth of 22 per cent, more than double the 1997 growth rate.

According to Mr Michael Duffy, chief executive of An Bord Bia (the Irish Food Board), this sector encompasses a wide range of consumer foods such as ready-prepared meals, convenience snacks, pizzas, soups, sauces and confectionery.

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"This sector was very effective," he said, in developing its supply position with the UK multiple retailers, "despite the continuing consolidation of suppliers through partnership arrangements and the strengthening competition from UK manufacturers".

He said Irish producers had recognised and reacted to the opportunities in the private label arena, and in the growth of the whole food service sector in the UK.

Mr Duffy said the outlook for this sector remained very positive. Consumer requirements for quality assurance, convenience, quality and value for money would continue to grow.

The challenges facing the sector this year largely involve the continuing consolidation of the supply base and the performance of the euro.

Mr Philip Lynch, chairman of the board, said the beef and other meat-producing sectors could take a leaf from the prepared consumer foods area.

"They are supplying the goods that the customer wants to buy and supplying them at the right price. That is the way forward in all the sectors, including beef, sheep and pigmeat."

The board's figures showed that the dairy and food ingredients sector maintained its export level at £1.6 billion on the back of a strong recovery in 1997.

Beverage exports increased by 12 per cent in 1998 to £616 million which was, said Mr Duffy, an outstanding performance.

Beef, cream liqueurs, spirits, carbonated soft drinks and mineral waters all showed increased growth.