Food and drink exports topped €8bn in 2006

IRISH food and drink exports delivered double-digit growth last year to exceed €8 billion for the first time, according to Bord Bia’s annual performance and prospects report, published yesterday.

The value of exports is estimated to have increased by €756 million, or 10%, to €8.1bn, despite a strong euro exchange rate against the dollar and ongoing competitive pressures in major export markets.

Agriculture and the food industry employs 155,000 people, accounts for over half the country’s indigenous exports and represents almost a 10th of the economy.

Total turnover of Irish food and drink is estimated at almost €20bn for 2006 with a relatively low import content.

Bord Bia chief executive Aidan Cotter said Irish food and drink exporters delivered a record performance in what remains a very competitive market.

“The scale of the achievement, with all major categories contributing to export growth, highlights the capacity of the industry to meet changing consumer needs and its potential to remain a significant driver of growth in the Irish economy,” he said.

Mr Cotter said the success of the beef sector in penetrating continental EU markets with a further growth of 20%, which represents the fifth successive year of increased exports, demonstrates the potential offered by mainland Europe.

With exports to Asia expected to exceed €300m for the first time, driven by growth in exports to China, the industry is clearly on track to achieve a doubling of exports by 2009, as set out in the Government’s strategy for the region.

Mr Cotter said the beef industry is now well placed to capitalise on Europe’s growing deficit, which Bord Bia forecasts will treble to at least one million tonnes by 2015.

The dairy sector, where exports grew by 6% and which accounts for a quarter of the total, is also set to benefit from its role as a platform for functional foods.

A major factor in its success is the infant formula category, driven by the high quality of dairy ingredients, whose expanding exports to the Middle East and Asia were a significant factor in growing sales in 2006.

Meanwhile, the success of cider exports to the British market demonstrates the continued potential of the strongly branded drinks sector to diversify into new markets and expand internationally.

The growth in beverage exports of 26%, adding €284m to export values, was also spurred on by growth in the liqueur and spirits categories where the rapidly developing Asian market promises further new opportunities.

Board Bia meanwhile announced that the domestic amenity horticultural market, which recorded a near €1bn consumer spend last year, will be boosted with a major show on a 70 acre site in the Phoenix Park, Dublin, during June 1-4.

Bloom will feature 20 inspirational gardens, a food market, dining and interactive exhibits and is expected to attract 50,000 visitors. It will be based on the highest international standards of plant display and garden design.